Wockhardt (WOCKPHARMA) Q4 2000 earnings summary

Executive summary

• FY2000 sales rose 34% and operating profit before R&D expenses grew 41%; return on capital employed was 21.3% and return on net worth 29.7%.

• The year marked the transfer of the pharmaceutical business into the new entity, a veterinary-business merger, and expansion of domestic brands, international sales and R&D.

Financial highlights

• Sales were Rs. 5,583.01 million; profit before tax was Rs. 770.16 million and net profit was Rs. 715.88 million for the year ended December 31, 2000.

• Operating income was Rs. 972 million before interest and depreciation; other income was Rs. 30.77 million.

• R&D investment was Rs. 402.5 million, or 7.24% of turnover; Rs. 86.5 million was capital expenditure and Rs. 316 million recurring expenditure.

Outlook and guidance

• Exports were targeted to grow by over 35% annually for the next three years; Biovac-B sales were expected to exceed Rs. 300 million in 2001.

• IND filings for two broad-spectrum antibacterials were targeted within 12 months; licensing arrangements for Super Generics, NCEs and oncology depot products were anticipated in 2001–02.

• Seven Wallis products were scheduled for launch by end-2002; domestic launches were planned across lifestyle, pain-management and anti-infective products during 2001.