AGIS GROWING VIA EXPORTS ROUTE

Agis, Israel's second-largest pharmaceutical group, is following in Teva's footsteps in going international, mainly through pharmaceutical chemical exports and generics. It is also believed to be looking for acquisitions in France and Germany. Total 1993 sales of Agis Industries and subsidiaries reached NIS244.8 million ($86.5 million), a real rise of 15.6% on 1992. Net consolidated profit amounted to NIS30.5 million ($10.8 million), a rise of 46% in local currency terms. In the last quarter of 1993, sales reached NIS63.3 million, a real increase of 17.2% on the like, 1992 period.

The company's managing director, Moishe Arkin, noted in his report to shareholders that Agis succeeded in increasing sales revenue of its own manufactured goods by 29.3%. He also pointed out that in 1992 net financial income totalled NIS3.5 million whereas in 1992 net financial expenditure amounted to NIS8.0 million. A significant factor in this change was a new agreement with the Histradut General Sick Fund for paying the latter's debts to Agis by installments. Total payments due to Agis as of end-1992 were NIS64.0 million.

During 1993 the company took a number of steps which were designed to enlarge its industrial and marketing infrastructure, so making it possible to widen its product line for Israel and abroad. This investment will continue throughout 1993 in order to exploit the current profitability for increasing Agis' potential expansion in the coming years. Gross operating margins were reduced to 34.1% (37.7% in 1992) as part of the marketing effort to introduce new products.