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CORRECTED-UPDATE 1-Stada says to overcome subdued development in Q1
February 29, 2016 / 2:17 PM / 2 years ago

CORRECTED-UPDATE 1-Stada says to overcome subdued development in Q1

(Corrects bullets and 8th paragraph to show consensus figure referred to adjusted net income, not reported net income)

* Sees slight gain in adj ‘16 profit despite subdues Q1

* 2015 reported net income 110.4 mln eur

* 2015 adj net income 165.8 mln eur vs 168 mln market view

* Shares fall 1.6 percent

By Ludwig Burger

FRANKFURT, Feb 29 (Reuters) - German generic drugmaker Stada forecast a slight increase in adjusted profit this year even though business would likely be subdued through March.

“In the first quarter of the current financial year, from today’s perspective the Executive Board anticipates more subdued development,” it said in a statement on Monday.

A spokesman for Stada cited a weak rouble, which is dragging the euro value of Russian sales lower, as the main effect.

Stada derives about 13 percent of group sales from Russia, its largest market outside Germany. The rouble trades about 14 percent below year-earlier levels against the euro and is down about 3.7 percent so far this year.

Shares in Stada pared earlier gains and were 1.6 percent lower at 1401 GMT, among the worst performers on Germany’s mid-cap index.

Stada, which also makes branded non-prescription treatments and diagnostic kits, forecast a slight gain for 2016 in earnings before interest, taxes, depreciation and amortisation (EBITDA)and net income, adjusted for one-offs, changes in the business portfolio, and certain eastern European currency effects.

Citing preliminary results, it said net income jumped 71 percent to 110.4 million euros ($120.21 million), as 2014 results were hit by more than 100 million euros in impairments on mainly Russian and eastern European assets.

Adjusted net income was down 11 percent at 165.8 million euros, compared with average analyst expectations for 168 million euros, Thomson Reuters data shows.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 10 percent to 377.1 million euros ($410.6 million) in 2015, missing average analyst expectations of 400 million euros.

The spokesman said a seasonal rise in Russian demand for cough and cold remedies came earlier than expected last year and shifted to the third quarter, at the expense of fourth-quarter earnings.

$1 = 0.9184 euros Reporting by Ludwig Burger; Editing by Maria Sheahan

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