Gist-Brocades Sales Top 2 Bill Guilders

Gist-Brocades of the Netherlands says net profit for 1996 rose 10% to158.5 million guilders ($83.0 million) and operating profit also improved 10% to reach 178.7 million guilders. Sales for the year increased 9.8% to 2.01 billion guilders, for the first time going through the "2 billion barrier," the company notes. All three of the company's operating divisions made a significant contribution to turnover growth.

For the industrial pharmaceutical products division, G-B says that in the second half of 1996 the supply of beta lactam antibiotics on world markets (especially coming from India and China) exceeded demand. This disequilibrium is expected to continue through 1997 and resultant lower price levels have already forced companies out of the antibiotic business. Others could follow, says G-B, but this could help restore the equilibrium in second-half 1997. The company does not envisage any significant change in the prices of other antibiotics.

Efficiency measures compensated for the higher raw material prices in the first half of 1996. After some delay in the start-up phase, G-B says the production of clavulanic acid has now come on stream in Sweden. Also, its interest in the Orfaquim (Mexico) and Acopharma (Egypt) operations was increased to 100%.