Pharmacy Chain 36.6 released Monday its preliminary operating results for 1Q 2008. The company's consolidated sales equaled more than USD 280 million in the reporting period, an increase of more than 51% y-o-y. The largest sales growth of 75.8% was shown by pharmacies opened before 1 January 2007: their revenue stood for nearly 72% in the total sales structure of the company's retail segment.
Table. Pharmacy Chain 36.6: Key Indicators 1Q 2008, USD mn
| Indicator | 1Q2007 | 1Q2008 | 1Q2008/1Q2007 |
|---|
| Revenue | 185.1 | 280.0 | 51.3% |
| including from: | | | |
| Retail segment | 148.7 | 229.6 | 54.4% |
| Veropharm | 24.1 | 34.8 | 44.0% |
| EMC | 6.3 | 8.2 | 30.2% |
Source: company data, Finam estimates
We are neutral on the company's 1Q 08 results. Although the pharmacy chain has demonstrated relatively high sale indicators in general, we point at a certain downturn in the number of subsidiary drugstore openings, which may have a negative impact on the retail segment's revenue over the long term. In 1Q, 21 pharmacies were opened organically, 6 pharmacies were rebranded, and 33 pharmacies were closed.
In line with our estimates, the fair value of Pharmacy Chain 36.6 is USD 56.5 per share, an upside of more than 34% on the current market valuation.
0.569
0.073
