Pharmaceuticals company Antibiotice Iasi has reported a 200% increase in its net profits for the first quarter. Net profits rose from 0.57 million euros to 1.87 million euros (68.4bn ROL) following the implementation of management by targets and the move to higher added value products.
"This method of running the company entails objectives for each member of the senior management team and individual budgets to which they must keep," said Ioan Nani, Antibiotice Iasi general manager.
Besides the new management system, the sustained profit growth was also brought about by the reorganisation of the company''s product portfolio and the improvements made in the efficiency of the company''s operating costs.
Another major reason for the profitability of the business, believes Nani, was the modification of the structure of active substances the company exports.
"We doubled exports of Nystatin (a drug for intestinal infections) and increased sales of Compactin Lactone to Canada, while reducing vitamin B 12, which has a lower price, as a proportion of total turnover."
Total sales by Antibiotice grew by 50% to approximately 9.8 million euros (360.5bn ROL) in first three months. Antibiotice''s main export markets are the Untied States, Russia, China, India, Malaysia and Indonesia.
"The sales expansion comes as the result of broadening the marketing and promotion division, but also increasing as a share in total sales a number of OTC (non-prescription drugs), the prices of which are no longer controlled," added Nani.
Investment into boosting profitability will also be continued in the near future, with Antibiotice set to introduce a new piece of equipment in September that will cut Nystatin manufacturing costs by some 40%.
alexandru.cerchez@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
