Egis expects moderate profit growth in the next three years

2010-08-20

Egis, a prominent Hungarian drug manufacturer, has forecast a moderate increase of its profit margins for the next three financial years and has upheld its present dividend policy. It expects to increase R&D costs to 9-9.5% of revenues in 2010, which could be offset by the expected increase in sales in the coming years following the introduction of new products. In the longer term, the company plans to reduce R&D costs to 8-9% of its revenues. According to Laszlo Marosffy, CFO of Egis, within the next three years Egis believes it will see an average 5% annual increase in its Hungarian revenues and a 10% increase in sales in Russia and the CIS countries, in US dollar terms, as well as an annual average increase of 8-9% in the CEE region (in euro terms).