Nine-Month Growth Better Than Expected At Egis

Hungarian pharmaceutical company Egis has reported better-than-expectedgrowth in after-tax profits and turnover for the first nine months of 1997, due principally to a slight upturn in domestic sales. Total revenues rose to 20.57 billion forint ($105.3 million), up 18.5% on the corresponding period of last year, while domestic sales increased 2% to 9.7 billion forint. After-tax profits climbed 12.3% to 4.58 billion forint.

Exports for the nine-months totaled $543.9 million, a 10% increase in dollar terms over the like, year-earlier period. All regions posted an increase, most notably sales to the Commonwealth of Independent States, which grew 27% in dollar terms, and Poland, up 13%.

Analysts Surprised Robert Feuer, an analyst with WestMerchant in London, said that Egis' results were surprisingly good and seemed to have turned around the negative trend that had beset the company on the domestic market. Nevertheless, the 70% increase in marketing expenditure was worrying, according to Balint Hada of New York broker Budapest, despite being in line with Egis' strategy, as it reduced profits.