Interim report
Page 1
ZENTIVA S.A. Preliminary Financial Statements 31 December 2024 AMOUNTS ARE EXPRESSED IN RON, UNLESS SPECIFIED OTHERWISE C2-Internal S.C. ZENTIVA S.A. Report of the Board of Directors for 2024 Fiscal Year (Preliminary) Reported date : 31.12.2024 Company name : S.C. ZENTIVA S.A. Location of the registered office : 50 Theodor Pallady str., Bucharest Tel. / Fax : 021-304.72.00 / 021-345.40.04 Tax registration code : RO 336206 Trade Register order number : J/40/363/1991 Subscribed and paid-in social capital : 69,701,704 RON
Page 2
ZENTIVA S.A. Preliminary Financial Statements 31 December 2024 AMOUNTS ARE EXPRESSED IN RON, UNLESS SPECIFIED OTHERWISE 2 C2-Internal SUMMARY: Statement of comprehesive income 3 Statement of financial position 4 Cash Flow Statement 5 Statement of Changes in Shareholders’ Equity 6 Activity Analysis and Financial Ratios 7 Note on the financial statements 8
Page 3
ZENTIVA S.A. Preliminary Financial Statements 31 December 2024 AMOUNTS ARE EXPRESSED IN RON, UNLESS SPECIFIED OTHERWISE 3 C2-Internal STATEMENT OF COMPREHENSIVE INCOME 2024 2023 RON RON Revenue from sales of goods 1,052,441,014 894,066,595 Revenue from rendering of services 61,403,805 59,566,489 Revenue 1,113,844,819 953,633,084 Other operating income (324,236) 395,084 Changes in inventories of finished goods and work in progress 13,496,732 18,373,825 Raw material expenses, merchandise, consumables used and utilities (463,189,194) (451,621,314) Employee benefits expenses (202,451,016) (162,197,973) Depreciation, amortization and impairment (29,675,217) (31,701,874) Marketing and advertising expenses (13,859,823) (9,924,589) Reversal of/ (expenses with) provisions (486,089) 1,117,499 Other operating expenses (168,222,514) (133,558,810) Operating profit 249,133,462 184,514,933 Financial Income 42,847,450 41,829,109 Financial Expenses (4,712,946) (4,518,761) Profit before income tax 287,267,966 221,825,281 Income Tax Expense (28,509,772) (29,209,449) Net profit for the year (A) 258,758,194 192,615,832 Other comprehensive income: Other comprehensive income that will not be reclassified to profit or loss in subsequent periods: Deferred tax impact 35,657 174,384 Other comprehensive income items (222,857) (882,309) Other comprehensive income net of tax (B) (187,200) (707,925) Comprehensive income for the year (A) + (B) 258,570,994 191,907,906 Net earnings per share (RON/share) 0.37 0.28
Page 4
ZENTIVA S.A. Preliminary Financial Statements 31 December 2024 AMOUNTS ARE EXPRESSED IN RON, UNLESS SPECIFIED OTHERWISE 4 C2-Internal STATEMENT OF FINANCIAL POSITION 31 December 2024 31 December 2023 Assets Non-current assets Property, plant and equipment 253,852,567 220,505,720 Advances for equipment 1,965,626 8,652,051 Right-of-use assets 18,108,392 21,092,139 Goodwill 11,649,100 11,649,100 Customer relationships 13,476,050 16,925,260 Other intangible assets 2,740,267 2,948,351 Total Intangible assets 27,865,417 31,522,711 301,792,002 281,772,621 Current assets Inventories 192,971,202 191,883,609 Trade receivables and other receivables 552,114,943 410,875,837 Income tax receivable 4,803,609 - Advances and prepayments 3,895,454 3,847,896 Cash pooling intercompany receivables 645,672,067 583,820,497 Cash and cash equivalents 33,625,156 27,302,728 1,433,082,431 1,217,730,566 Total assets 1,734,874,433 1,499,503,187 Equity Issued share capital 69,701,704 69,701,704 Share premium 24,964,506 24,964,506 Legal and other reserves 202,661,424 155,961,510 Revaluation reserve 65,023,715 67,069,892 Retained earnings 1,087,871,858 873,564,853 Total equity 1,450,223,207 1,191,262,465 Non-current liabilities Employee benefit liability 7,945,130 7,173,565 Deferred tax liability 2,237,742 5,556,704 Lease liabilities 9,555,404 13,894,126 Provisions 2,040,968 1,265,568 Total non-current liabilities 21,779,244 27,889,963 Current liabilities Contract liability - 4,623,319 Trade payables and other payables 194,670,632 210,988,922 Income taxes payable - 7,641,646 Short-term lease liabilities 8,917,455 7,261,482 Other current liabilities 56,058,082 46,251,580 Short-term provisions 3,225,813 3,583,810 Total current liabilities 262,871,982 280,350,759 Total liabilities 284,651,226 308,240,722 Total liabilities and equity 1,734,874,433 1,499,503,187
Page 5
ZENTIVA S.A. Preliminary Financial Statements 31 December 2024 AMOUNTS ARE EXPRESSED IN RON, UNLESS SPECIFIED OTHERWISE 5 C2-Internal STATEMENT OF CASH FLOWS 31 December 2024 31 December 2023 Cash flows from operating activities: Profit before tax 287,267,966 221,825,281 Depreciation and amortization 31,214,120 30,772,848 Impairment on property, plant and equipment (1,538,903) 929,026 Allowance for trade and other receivables, advances and prepayments (248,010) 251,807 Inventory allowance movement 9,434,226 (4,848,676) Movements in provisions for risks and charges 417,403 (1,001,717) (Gain)/loss on sale of non-current assets 1,492,042 24,897 Interest revenues (40,118,792) (37,877,564) Interest expenses 1,738,059 1,380,300 Operating profit before working capital changes 289,658,111 211,456,202 Change in inventories (10,521,819) (13,974,701) Change in trade, other receivable and advances (134,529,472) (252,630,576) Change in trade and other payable (9,982,191) 96,715,915 Interest paid (1,738,059) (1,380,300) Cash generated from operating activities 132,886,569 40,186,540 Income tax paid (44,439,115) (26,003,618) Net cash from operating activities 88,447,454 14,182,922 Cash flows from investing activities Purchase of property, plant and equipment and intangible assets (52,135,319) (28,319,718) Cash pooling movement (61,674,328) (309,310) Interest received 40,118,792 37,877,564 Net cash used in investing activities (73,690,854) 9,248,537 Cash flows from financing activities Lease payments (8,434,171) (7,319,410) Net cash used in financing activities (8,434,171) (7,319,410) Net increase (decrease) in cash and cash equivalents 6,322,429 16,112,049 Cash at the beginning of the period 1 January 27,302,728 11,190,679 Cash at the end of the period 31 December 33,625,156 27,302,728
Page 6
ZENTIVA S.A. Preliminary Financial Statements for the period ended on December 31, 2024 AMOUNTS ARE EXPRESSED IN RON, UNLESS SPECIFIED OTHERWISE 6 C2-Internal STATEMENT OF CHANGES IN EQUITY Share capital Share premium Legal and other reserves Revaluation reserve Retained earnings Total Opening balance at 1 January 2024 69,701,704 24,964,506 146,399,175 67,069,892 691,219,282 999,354,559 Profit for the year - - - - 258,758,194 258,758,194 Other comprehensive income: Decrease in reevaluation reserve - - - (2,435,925) 2,435,925 - Deferred tax impact on reevaluation 389,748 - 389,748 Deferred tax impact on other comprehensive income - - - - 35,657 35,657 Other comprehensive income - - - - (222,857) (222,857) Total other comprehensive income - - - (2,046,177) 2,248,725 202,548 Total comprehensive income - - - (2,046,177) 261,006,919 258,960,742 Reserve for reinvested profit - - 46,699,914 - (46,699,914) - Closing balance at 31 December 2024 69,701,704 24,964,506 202,661,424 65,023,715 1,087,871,858 1,450,223,207 The legal reserve is set in accordance with the provisions of the Companies Law, according to which, at least 5% of the annua l accounting profit is transferred within the legal reserves until their balance reaches 20% of the company’s share capital . If this reserve is used fully or partially to cover losses or to distribuite in any form (such as to issue new shares according to the Companies Law), it becomes taxable . The company’s management does not estimate it shall use its legal reserve in such a way that it becomes taxable. On 31,12,2024, the amount of legal reserves reaches the threshold of 20% of the company’s share capital.
Page 7
ZENTIVA S.A. Preliminary Financial Statements for the period ended on December 31, 2024 AMOUNTS ARE EXPRESSED IN RON, UNLESS SPECIFIED OTHERWISE 7 C2-Internal ZENTIVA S,A, reports as preliminary result for 2024, a turnover of 1,113.8 MRON, with an increase of 16.8% compared to the previous year , and an operational profit of 258.8 MRON, with an increase of 34.3%, compared to the previous period, mainly due to the increase in sales of goods. The financial statements are preliminary and not audited. Main Financial Ratios at 31.12.2024 Ratio Name Ratio Formula Result 1, Current ratio Current assets / Current liabilities 5.5 2, Debt ratios Long term debt / Shareholder's equity x 100 0 Long term debt / Total capital employed x 100 0 3, Debtors days ratio Trade receivables / Net turnover x 360 155 4, Asset turnover ratio Net turnover / Non current assets 3.7
Page 8
ZENTIVA S.A. Preliminary Financial Statements for the period ended on December 31, 2024 AMOUNTS ARE EXPRESSED IN RON, UNLESS SPECIFIED OTHERWISE 8 C2-Internal NOTE REGARDING THE PRELIMINARY FINANCIAL STATEMENTS AS OF 31.12.2024 Given the complexity of the process of preparing financial statements in accordance with International Financial Reporting Standards (IFRS) , the company is still in the process of finalizing all the analysis and adjustments in this regard . As such, the results presented in this report are preliminary, based on the information available at the publishing date. These do not include the complete adjustments, and may be subject to change until they are finalized and presented for approval to the General Meeting of Shareholders. The main elements which are potentially subject to change include, but are not limited to: • Income Tax • Operating Profit • Reclassifications across assets and liabilities Please note that the values presented are not yet audited - during the audit adjustments may be made which may influence the results of the financial year 2024. General Manager SIMONA COCOS Chief Financial Officer DANIEL NITULESCU