Biofarm: business up, profit down

Drugmaker Biofarm Bucharest posted a turnover worth over 4 million euros (14.5 million RON) in the first quarter, a 26% increase in euros against a similar period of last year. Nonetheless, net profit was down 12.5% to 1.12 million euros (4 million RON). The company managed to cut its material costs by some 15% compared with the first three months of 2005, but its personnel expenses and those for services contracted from third parties went up 29% and 67% respectively. Third party-related costs also include marketing expenses, as the company has lately invested more on product promotion. “The growth in sales is due mainly to the new products launched on the market, as well as investments in marketing and sales. 11 new products were launched this year, but sales have also gone up for traditional products for which we conducted promotion campaigns. We also had TV campaigns and we will have some more this year as well, to improve the way in which our products are perceived,” stated Dan Vasile, general manager of Biofarm. ZF