Icelandic generic drug maker Actavis announced a drop of more than 13 percent in first quarter profits Tuesday, but claimed it would still reach its goals for 2007.
“Actavis has a good start to the year, in line with our expectations,” Actavis CEO Robert Wessman said in a statement, who was elected the 2006 Icelandic businessman of the year by Icelandic business magazine Frjáls verslun.
The company’s pre-tax earnings decreased from EUR 40 million (USD 54 million) in the first quarter of 2006 to EUR 34.7 (USD 47 million) in the first quarter of 2007.
Net profit dropped by 15 percent to EUR 27 million (USD 37 million) due to higher interest expenses and rising depreciation charges for 2006 investments, Reuters reports.
Revenue, on the other hand, increased by 12 percent to EUR 387.7 million (USD 525 million) from EUR 341.9 million (USD 463 million) in the first quarter of 2006.
According to Wessman, the reason is continued underlying growth in the UK, Germany and Russia.