May 13 (SeeNews) - Romanian state-controlled drug maker Antibiotice [BSE:ATB] said on Wednesday its net profit rose by an annual 25% to 4.08 million lei ($915,250/843,900 euro) in the first quarter of 2020.
The increase resulted from tax exemption for profit invested in equipment, Antibiotice said in a financial report filed with the Bucharest Stock Exchange, BVB.
Sales rose 13% to 73.63 million lei in the first three months of the year due to 49% growth of sales revenue on the Romanian market.
The company said that export restrictions imposed by Romanian authorities and disruptions in traditional transport channels and supplies from China, Italy, France and India affected its exports.
However, the export of Nystatin, of which Antibiotice is a world leading manufacturer, was not affected by the Covid-19 pandemic, as it is an active substance and not a medicine and legislative restrictions did not limit deliveries to international partners. Thus, sales of Nystatin rose by 27% on the year to about 18 million lei in the first quarter of this year.
The company's net profit fell 10% to 30.8 million lei in 2019, while sales rose 7% to 389.7 million lei.
Antibiotice Iasi is a state-owned pharmaceutical company that develops and produces 157 generic drugs for human use, veterinary drugs and Nystatin, an active ingredient. Its research centre and production facilities are based near Iasi county, in eastern Romania.
Antibiotice shares traded 1.94% higher at 0.5250 lei as at 1508 CET on Wednesday on the Bucharest Stock Exchange.
(1 euro=4.8349 Romanian lei)