Wockhardt - Update - Annual Results

Wockhardt’s Robust Annual Results

Sales surge by 53% to Rs. 2,653 crore Net Profit soars by 60% to Rs. 386 crore Operating Margin at 24.1% up 90 basis points

Mumbai, 20 Feb,2008

Pharmaceutical and biotechnology major Wockhardt Limited today announced its results for the year ended 31st December 2007. Sales revenues surged by 53% to Rs. 2,653 crore, net profits soared by 60% to Rs. 386 crore and operating margins at 24.1% improved by 100 basis points.

“In 2007 Wockhardt moved into another trajectory of globalisation and growth. Not only did sales grow by 53%, operating profit margins improved 90 basis points resulting in 60% improvement in net profit,” said Wockhardt Chairman Habil Khorakiwala. “The value creation in the new acquisitions of Pinewood and Negma in Europe, contributed to the growth in profits.” Elaborating further on Wockhardt’s strategic plans for the future, Chairman Habil Khorakiwala said, “We are fundamentally focussed at consolidating, integrating, rationalising and optimising our global resources to create value for the company and all our stakeholders.” For the fourth quarter of 2007, net profits climbed to Rs. 107 crore, thereby crossing the 100 crore mark for the third consecutive quarter. Sales peaked at 45% to Rs. 762 crore and operating margin at 24.9% improved by 170 basis points. The total dividend for the financial year ended December 31, 2007 is Rs. 11.25 per equity share i.e. 225%. An interim dividend of Rs.8.75 per equity share i.e. 175% was paid in November 2007. The Board has now recommended an additional dividend of Rs. 2.50 per equity share, i.e. 50%. On the India business front there has been a strategic thrust with Wockhardt signing in-licensing agreements with 6 European and US companies for 11 products, of which 5 products have already been launched in the country in the field of Dermatology, Nutraceuticals and Osteo-arthritis. India Business: As per ORG-IMS, the domestic business recorded an annual growth of 19% vis-à-vis 13% industry growth rate. Dexolac joins Spasmo-Proxyvon in the elite ‘Top 100’ brands in India. Overall 8 brands feature in the list of ‘Top 300’ brands of the industry (ORG-IMS Dec 2007). Europe Business: UK, Ireland, Germany and France recorded double-digit growth, almost twice the industry growth in these markets. The European formulation business grew 97% FTY 2007. Wockhardt UK also saw an opportunity and launched the NRT (Nicotine Replacement Therapy) in patches and lozenges forms for curbing smoker’s habit. US Business: With the Morton Grove acquisition, Wockhardt now has a complete range of dosage forms from tablets, capsules, liquids and injectibles. Morton Grove has a portfolio of 31 products, 13 of which occupy the No.1 market position. All others are in the Top 3. The overall product range has now swelled to around 56 products for the US market, of which Wockhardt USA Inc is currently marketing 25 products. The US FDA also approved 13 ANDA’s, of which 11 products have already been launched Wockhardt Limited is a global pharmaceutical and biotechnology major with an innovative research and development programme. Wockhardt has global footprints including UK, France, Germany, Ireland and USA. Wockhardt employs around 6000 people worldwide belonging to 14 different nationalities.



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