China BCT Reports Fourth Quarter and Full Year 2011 Results

LIUZHOU CITY, China, March 30, 2012 /PRNewswire-Asia/ -- China BCT Pharmacy Group, Inc., (OTC BB: CNBI), ("China BCT" or the "Company"), a leading pharmaceutical distributor, retail pharmacy, and manufacturer of pharmaceutical products in Guangxi Province, China, today announced results for the fourth quarter and full year ended December 31, 2011.

Fourth Quarter 2011 Highlights

"We were pleased with our fourth quarter performance. Our revenues were stable compared to the fourth quarter last year and the third quarter this year. Our wholesale business remains very competitive and the latest round of bidding for hospital supply contracts meant many of our manufacturing suppliers lost or gained new business, leading to challenges for us in developing new hospital relationships for a new set of products," said Mr. Huitian Tang, Chief Executive Officer and Chairman of China BCT Pharmacy Group, Inc. "However, our retail and manufacturing businesses grew to compensate for this challenge to our wholesale sector. We opened four more in-store TCM clinics and we closed lower-performing stores. Manufacturing continues to weather pricing pressures occasioned by the drug price ceilings imposed by the government. In all an increase of 12% in gross profit contribution compared to the same quarter a year ago is creditable."

Fourth Quarter 2011 Results

Fourth quarter 2011 revenue decreased slightly to $66.3 million from $66.8 million in the fourth quarter of 2010.

Revenue from the Company's pharmaceutical distribution segment decreased 4% year-over-year to $48.7 million, or 73% of total revenue in the fourth quarter of 2011, as it was negatively impacted by the new contracts under the hospital bidding process that ended in October.

Revenue from the Company's retail pharmacy segment grew 10% year-over-year to $13.9 million, or 21% of total fourth quarter revenue, partly due to the opening of four in-store TCM clinics during the quarter.

Revenue from the Company's manufacturing segment rose 7% year-over-year to $3.7 million, or 6% of total fourth quarter revenue.

Gross profit grew 12.2% year-over-year to $15.8 million, up from $14.1 million for the same period of 2010. Gross profit margin increased 2.8 percentage points to 23.9%, as compared to 21.1% in the comparable period last year. The increase in gross profit margin in the fourth quarter of 2011 mainly reflects a greater mix of higher margin retail and manufacturing business and increases in margins within those businesses.

Within pharmaceutical distribution, operating profit margin increased from 14% in the fourth quarter of 2010 to 14.5% in the fourth quarter of 2011. Operating profit margin for the retail pharmacy segment increased to 19.8% from 14.3% in the fourth quarter of 2010, reflecting the start of the in-store TCM clinics which generate higher margins and the closing of less profitable smaller stores. Manufacturing segment operating profit margin was 50% and 44.2% during the quarters ending December 31, 2011 and 2010, respectively.

Visit link:
China BCT Reports Fourth Quarter and Full Year 2011 Results