Veropharm has released its unaudited financial results for 1H 2008. The statement says revenue jumped by 45.4% in dollar terms to USD 86.5 million, with growth largely attributed to a rise in prescription medicine sales to 65% of the total, up from 54% a year earlier.
Table. Veropharm: basic financials for 1H 2008, USD mn
| | 1H2007 | 1H2008 | 1H2008/1H2007 |
|---|
| Revenue | 59.5 | 86.5 | 45.4% |
| Cost of production | 22.9 | 27.8 | 21.5% |
| Gross profit | 36.6 | 58.7 | 60.3% |
| Gross margin | 61.5% | 67.9% | |
| Indicator | 21.47 | 32.38 | 50.8% |
| Operating profit | 15.17 | 26.35 | 73.7% |
| Operating margin | 25.5% | 30.5% | |
| EBITDA | 17.0 | 28.6 | 68.2% |
| EBITDA margin | 28.6% | 33.0% | |
| Net profit | 11.0 | 19.4 | 76.4% |
| Net margin | 18.5% | 22.4% | |
Source: company data, Finam estimates
We are upbeat on the 1H 2008 financials posted by Veropharm. The company continues to boost its profit margins by cutting its costs and expanding prescription drug sales, its most profitable segment.
In our view, the shares are now fairly valued on the market, while the strong financial results posted could prop up the company's stock valuations in the short term. Our target price for Veropharm is USD 46.9 per share.
0.569
0.073
