18th Feb 2014 11:18
LONDON (Alliance News) - Hutchison China MediTech Ltd on Tuesday reported a fall in profits for the 2013 financial year, but it more than doubled its revenues during the period, driven by a strong performance from its China Healthcare division.
For the financial year ended December 31 2013, the healthcare group which is primarily based in China, reported a lower pretax profit of USD10.1 million for the year, compared with GBP11.9 million a year earlier, as the previous year's pretax profits was inflated by the disposal of a business, it said.
It reported a net profit of USD9.0 million for the year, lower than the USD10.8 million the prior year, however reported a profit from discontinued operations for the year of USD7.0 million, more than double the USD3.5 million reported in 2012.
"Trading has started well this year. Sales and profit in our China Healthcare Division are well ahead of 2013 levels... we expect 2014 to be a breakout year for our Drug R&D Division. Our Consumer Products Division's continuing operations have started well and we expect the refocused operations to be profitable this year," said Chief Executive Officer Christian Hogg.
For 2013, the group said revenue from continuing operations more than doubled to USD46.0 million, from USD22.4 million a year earlier.
The group said its China healthcare division continues to grow rapidly, demonstrating the major potential in the China pharmaceutical market, it said. To hone in on the opportunity, the group said it has formed a new 51% owned joint venture with Sinopharm Group to provide sales, distribution and marketing services to major Chinese and multi-national third party pharmaceutical manufacturers.
It said sales of subsidiaries and joint ventures were up 13% in 2013 to USD394.6 million, and organic expansion of own brands increased 14% to USD343.0 million, with both prescription and over-the-counter cardiovascular drug sales performing the strongest.
Its consumer products division grew sales 23%, driven by progress on the expansion of the range of Hutchison Hain Organic Holding Ltd products in Asia, while Sen France and aspects of its China infant formula businesses have been discontinued.
Hutchison China MediTech said revenue from its Drug R&D division increased significantly to USD29.5 million, from only USD9.5 million a year earlier, as a result of USD22.2 million in upfront and milestone income and USD7.3 million in service income from its partners.
The group did not declare a dividend for the financial year, saying that the board continues to be of the view that, "Chi-Med can create greater shareholder value by investing in the growth opportunities."
Shares in the group were trading 3.3% higher at 700.00 pence per share Tuesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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