*Q3 net profit lags forecast
*"Confident" on 2008 outlook
*Board reiterates recommendation on Sanofi bid
(Adds details, comment, share reaction)
PRAGUE, Nov 10 (Reuters) - Net profit of Zentiva <>
missed market forecasts in the third quarter due to financial
costs, but the Czech generic drugs maker remained "confident" in
its full-year outlook.
Third-quarter net profit rose 12 percent to 258.9 million
crowns, below the average of 314 million forecast by eight
analysts in a Reuters poll, the company said on Monday.
However, operating profit (EBIT) soared 130 percent on base
effects as the company improves after debt recovery problems hit
the company in the second half of 2007, analysts said.
Zentiva, a takeover target of France's Sanofi-Aventis
<SASY.PA>, said it was on track to meet a 2008 target of 20
percent in net sales growth and EBIT margin of at least 15
percent.
"Based on the numbers we have announced today I am confident
that Zentiva will deliver our guidance for 2008 and is well
positioned to successfully navigate our business through the
tougher economic environment ahead of us," Chairman and Chief
Executive Jiri Michal said in a statement.
Nine-month net profit including impairment of fixed assets
hit 1.09 billion crowns, below a market forecast of 1.3 billion.
Revenues in the first nine months hit 13.1 billion crowns,
in line with a reported 18 percent rise in nine-month sales in
October that was helped by Turkish sales offsetting falls in the
key Czech and Romanian markets. []
"They are managing their costs better now," said Karel
Potmesil, an analyst with Cyrrus brokerage, adding the weaker
crown, down 5.8 percent since July 1, strained the company's
financial levels due to revaluations of euro debt.
Shares in Zentiva traded little changed at 1,099 crowns, up
0.3 percent, by 1203 GMT, underperforming a 2.9 percent rise for
Prague's PX index <>.
Sanofi, already a 24.9 percent shareholder, has offered
1,150 crowns per share in bid contingent on raising its stake to
at least 50 percent. Zentiva reiterated the board's
recommendation to accept the bid.
The possible acquisition by Sanofi would help it gain a
stronger foothold in the generics sector, although the deal does
face hurdles.
Second-largest shareholder PPF, controlled by the Czech
Republic's richest man Petr Kellner, has raised its stake in
Zentiva to 24.3 percent from 19.2 percent since Sanofi countered
PPF's own takeover bid this summer.
Belviport Trading Ltd., whose owners remain anonymous, has
also bought up more than 10 percent of Zentiva.
(Reporting by Jan Korselt and Jason Hovet; Editing by David
Cowell)
