Biofarm 2013 budget
The pharmaceuticals producer Biofarm (BIO) made public its 2013 budget that should be approved by shareholders on April 18. The company budgeted sales of RON 115 mn, 10% higher compared to 2012 results and almost similar compared to our estimates. Operating profit is budgeted at RON 23 mn, 2% lower yoy with raw materials costs up 5% yoy to RON 33 mn, other operating expenses (including marketing costs) up 7% yoy to RON 38.7 mn. Net profit is seen at RON 19 mn, up 10% yoy excluding the effects of the revaluation of the stock portfolio and slightly below our estimate. Given that the budgeted figures stand close to our estimates we rate the news as neutral.
