Recordati Maintains Operating Profit Growth In 1st Half

Italian pharmaceutical company Recordati achieved operating profit growth in the first six months of of 1994, but said that pharmaceutical sales in Italy declined as a result of "arbitrary government measures."

Consolidated sales were 148.2 billion lire ($94.8 million), reflecting a decline of 3.8% on the like, year-earlier period. Sales of prescription drugs in Italy dropped 17%, reflecting gradual recovery in the second quarter from the 21% drop recorded in the first quarter. Pharmaceutical chemical sales rose 12%, accounting for around 33% of total sales. Total international sales were up 17% and represented 38% of total sales.

Price erosion of prescription drugs brought about a decline of 8.9% in gross profit in the first half. However, an improved performance by pharmaceutical chemicals and swift implementation of a cost-cutting program resulted in operating profits rising 11.5% to 14.1 billion lire, said the company. There was a slight decrease in pretax profit to 11.2 billion lire, and net income was 6.6 billion lire, down 16.9%.