Antibiotice Iasi (ATB), the biggest drug producer with Romanian capital, aims to double its turnover and exports and increase its profit 2.5 times by 2028, the company said in a report to investors.

In 2020, Antibiotice recorded sales of RON 340 mln (close to EUR 70 mln), down 13% compared to 2019, and a net profit of RON 25 mln (EUR 5.1 mln), down 19% year-on-year, according to the preliminary financial report.

The company wants to keep most of the profit recorded in 2020 to finance its investment plans. Thus, it cut the dividends proposed to shareholders nine times compared to last year to just RON 2.2 mln (EUR 450,000). The ATB share price went down 3.7% after the announcement.

Antibiotice’s management argues that the investments will help the company meet its targets. In 2020, the company doubled its investments to over RON 14 mln (EUR 2.87 mln).

“Doubling the turnover in the next period is an important target and the international expansion is the top direction followed by the company’s shareholders. Of course, our target is to also increase the business profitability, which we achieve by periodically investing our profit in product development, applicative research, and solid partnerships,” said Ioan Nani, Antibiotice’s general manager.

The Romanian state controls 53% of the company’s shares through the Health Ministry. Local investment company SIF Oltenia (SIF5) holds a 19% stake and the remaining 28% of the company’s shares are held by other investors on the Bucharest Stock Exchange.

Antibiotice Iasi currently has a market capitalization of RON 333 mln (EUR 68 mln), as of March 23, 2021.

editor@romania-insider.com

(Photo source: Antibiotice Iasi Facebook page)