Hungary Egis posts huge HUF 7.4 bn full-year net profit

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Egis said in its preliminary report on Thursday that it made a net profit of HUF 7.39 billion in four quarters by end-September, which corresponds to a rise of 29% from HUF 5.72 billion in fiscal 2003.Although Egis did not provide separate Q4 data, calculations by portfolio.hu show that its fourth-quarter net profit jumped nearly 60% to 1,966 million from 1,239 million. Analysts' consensus in a portfolio.hu poll was for HUF 1,688 million net income for Q4, 16.5% less than the actual figure.

Egis' fourth-quarter sales came in at HUF 17,646 million, against forecasts for HUF HUF 17,317 million.

Domestic sales exceeded expectations in the fourth quarter with 24% growth, well above the market's forecast for 10%-15% growth. Egis said its generic drugs introduced in over the past several years accounted for the bulk of growth.

The company's market share in Hungary rose to 6.8% in fiscal 2004 from 6.6% in fiscal 2003.

Exports grew 18% to USD 51.8 million in the fourth quarter, despite a decline in Russian sales. Russia is the largest export market for Egis.

Russian sales dropped 8% year on year and were 5% down from the previous quarter, although Egis attributed the entire decline to high base figures and said that sales were better than its own projections.

Full-year Russian exports rose 22% year on year, while the company targeted a 20% growth.

The company's fastest growing market this year proved to be Central Europe, where exports jumped 44% in annual terms, mainly owing to a 59% rise in Polish sales.

Egis' bottom line was also lifted by a modest financial gain, mostly on hedging.

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