Nepentes posts 24.5% net profit decline in H1 2010

2010-09-01

Nepentes, the listed manufacturer and distributor of dermocosmetics and medicinal products, reported a 0.8% y-o-y drop in group sales revenues in the first six months of the year, to PLN 64.5m (€16.1m). Net profit slipped by 24.5% y-o-y to PLN 8.3m (€2m).
CEO Lukasz Butruk said the company was highly satisfied with the results given the difficult market conditions and its capital expenditure on the manufacturing plant in Chociw, which was completed in the second quarter.

The source of positive revenue growth were own-brand products, whose sales surged by 7.2% y-o-y. As a result, Emolium, Nepentes’ flagship product, consolidated its position as the best-selling brand in its market segment, with a 27.8% share in the market of emollients. Iwostin holds 4^th position in the market of dermocosmetics with market share at the level of 6.1%.
At the same time, Nepentes continued to grow sales of Rx dermatology medicines whose sales reached PLN 2.08m (€0.5m) in H1, the first full half year result since their launch. The company also achieved positive 10.9% growth in export sales which account for 17% of the company's overall revenues.
Nepentes expects positive sales and profit growth in the year as a whole, driven by new product launches in the dermocosmetics segment, rising sales of Rx medicines and strong exports.