Russia's Veropharm Q1 net profit rises 15 pct

MOSCOW, July 3 (Reuters) - Russian drug maker Veropharm (VFRM.MM) said on Thursday its first-quarter net profit rose 15 percent to $6.3 million on the back of higher sales volumes.

Veropharm, part of Russian pharmacy chain 36.6 (APTK.MM), said in a statement that revenues, to international financial reporting standards, increased 44 percent to $34.7 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 30 percent to $9.2 million, but the EBITDA margin declined to 26.4 percent from 29.3 percent.

Gross profit jumped 42 percent to $21.8 million with gross margin coming down to 62.9 percent from 63.8 percent a year ago.

Selling, general and administrative costs soared 51 percent to $13.7 million from $9.1 million in the first quarter of 2007.

At the end of March, Veropharm's debt stood at $17.8 million, accounting for less than 20 percent of its net assets.

Veropharm is one of the largest Russian pharmaceutical producers with a market value of around $550 million. (Reporting by Maria Kiselyova; Editing by Paul Bolding)