Recordati reports increased profitability in 2006

Recordati has announced its financial results for the 2006 fiscal year, recording revenues of 576.2 million euros (384.5 million pounds) for the year, showing no significant change on sales in 2005.

Net income rose 14.7 per cent in 2006, reaching 74 million euros, while operating income rose 8.3 per cent to 120.3 million euros. The company reported a 0.1 per cent increase in revenue as a result of pharmaceutical operations.

In its guidance for 2007, the company forecasts revenues of 650 million euros for the year, with a net income of 83 million euros and dividend payout ratio rising to half of the consolidated net income.

Giovanni Recordati, chairman and chief executive officer, said: “During 2006, thanks to the continuing success of our original drug lercanidipine and to the careful management of the company’s resources, the profitability of our business improved further compared to that of 2005.”

He added that the acquisition of Jaba Farmaceutica and other pharmaceutical units of the Grupo Jaba in Portugal highlighted the company’s dedication to expansion of its business in Europe, with Recordati looking to increase the importance of the international component of its business.

Earlier this month, the company announced that it had signed a non-exclusive agreement with Meda for the sale and marketing of its antihypertensive drug Zaneril in Germany.