Faes Farma reports high profit, low sales

Spain's Faes Farma has reported a 20% rise in profit in the first three months of 2008 compared to the year-before period, despite a 3.7% drop in sales due to the early Easter Holidays.

Income rose to 8.1 million euros ($12.5 million) during the quarter, whereas sales dropped to 50.2 million euros. However, the firm maintains this is due to the Easter Holidays being brought forward to March as it reports revenue for April showing an increase in spite of strong compulsory price restrictions.

The disparity between sales and profit is due to a 52% drop in costs for depreciation and amortization due to a redefinition of the useful life of some of the firm's oldest intangible assets, ie, trade marks.