Nine successful months for Lek

17. 11. 1998

At its meeting at the end of November, the Supervisory Board of Lek d.d. adopted the report on the company’s business operations in the first nine months of the current year. Over this period the company achieved sales of SIT 35 billion, representing a 12% growth compared to the same period last year. This resulted in a profit before tax of SIT 3.6 billion.

The best results were in the markets of the USA, the Czech Republic and Macedonia, where 90% of the current year’s business plan for these markets was achieved over the first nine months.

An important contribution to good results in the American market was made by sales of OTC drugs, particularly cimetidine, for which Lek was granted a sales registration licence in this highly complex market in June 1998.

Highly satisfactory were the results of the Animal Health Division which increased its sales during the first nine months by 26% in comparison with the same period last year.

The Russian economic situation which hit companies selling into the territory of the former Soviet Union will only have a minimal effect on the budgetted net earnings of Lek for the current year.

The Supervisory Board was also informed of trading with Lek shares on the Ljubljana Stock Exchange as well as of the dematerialization of B- and C-Class shares. From 16 November 1998 on, trading with the enlarged A-Class shares is being conducted on the Ljubljana Stock Exchange, while C-Class shares were withdrawn from the official list of the Stock Exchange and associated with A-Class shares. The company will enter B-Class shares in the official list after the acquisition of all the necessary licences.

On 17 November 1998 foreign shareholders held 23.5% of Lek shares, which represents a 7% reduction of their holding and a corresponding increase in the percentage held by Slovene citizens, corporate and institutional investors.