(Repeats story published on May 16)
* Zentiva <> first-quarter results
* Due at 1000 GMT on May 19
* Net profit seen down 23.6 percent to 397 million crowns
($24.54 million)
PRAGUE, May 16 (Reuters) - Czech generic drugs maker Zentiva
is expected to post a 23.6 percent drop in first-quarter net
profit due to weak sales in its key markets and higher interest
costs, a Reuters survey showed on Friday.
Nine analysts gave an average estimate for the net profit at
397 million crowns ($24.54 million) for the January-March
period, down from 519 million a year ago.
Zentiva said last month it expected revenue around 4.4
billion crowns in the first quarter, 30 percent higher year on
year, boosted by last year's acquisition of Turkish generics
maker Eczacibasi Generic Pharmaceuticals.
But without the takeover, sales fell 11 percent due to a 10
percent drop in the Czech Republic and 40 percent slump in
Romania, Zentiva's two biggest markets.
Zentiva has been hit by the Czech government's cost-saving
reforms, which lowered spending for healthcare there, while in
Romania the firm's sales dropped after it took precautionary
steps against late payments from distributors.
Its interest costs grew year on year when it took a 550
million euro ($851.2 million) loan to finance the purchase of 75
percent in Eczacibasi in July 2007.
"Eczacibasi has boosted revenue, but negatively affected the
gross margin due to low gross profitability in Turkey," said
Atlantik FT brokerage in a report.
"The financial level will be burdened by interest paid from
the loan taken for the Turkish acquisition," the report added.
Operating profit at Zentiva is seen down only 4.6 percent at
725 million crowns.
Zentiva shares have lost 29 percent over the past 12 months,
underperforming Prague bourse's PX index <>, which decreased
by 7 percent over the period.
The firm is 25 percent owned by France's Sanofi-Aventis
<SASY.PA>. Its second-biggest shareholder, PPF Generali Group
<GASI.MI>, launched a takeover bid to increase its 19.1 percent
stake in May for 950 crowns per share.
Following is a breakdown of analysts' estimates.
Figures in millions of Czech crowns
Average Median Q4 2006 Range
EBITDA 1,090 1,056 998 935 -1,347
OPERATING PROFIT 725 713 760 589 -1,017
NET PROFIT 397 382 519 326 - 592
The following equity houses took part in the poll:
Atlantik FT, BH Securities, Cyrrus, ING Wholesale Banking,
Erste Bank/Ceska Sporitelna, KBC/Patria Finance, Komercni Banka,
UBS, Wood & Co.
(Reporting by Jan Korselt; editing by David Hulmes)
