Pelion : Strong revenue growth underpinned by strategy consistently implemented across business segments

The 8.8% consolidated revenue growth reported in the first quarter of the year (up 6.5% in wholesale and 14.7% in retail) demonstrates that the product offering marketed by Pelion Group companies meets the growing needs and expectations of their customers and patients.Polska Grupa Farmaceutyczna focused on ensuring timely and complete deliveries and secure drug distribution. The company also worked to refine its services by implementing a state-of-the-art pharmacy stock management software and a system for monitoring temperature during transport. With customers in mind, PGF introduced new effective solutions, including a unique model for handling complaints through pharmbook.pl, and expanded and upgraded its telemarketing system. The company continued to roll out its Healthy Choice scheme, offering advanced pharmacy management tools. PGF's primary objective is to further expand its product portfolio and strengthen its market position while continuing to offer the broadest product range available on the market.DOZ pharmacies made consistent efforts to offer best-in-class products to patients. The pharmacy chain provides guaranteed access to a wide range of affordable medicines, including high-quality proprietary brands and professional pharmaceutical care provided by qualified staff. Today, DOZ pharmacies are Poland's pharmacies of choice, enjoying the position of a stable employer for the largest group of pharmacists in Poland. Their aim is to maintain the leading position on the pharmaceutical market and a high level of confidence among patients through continuous improvement of standards and quality of service and development of proprietary brands.The Drogerie Natura beauty store chain continued to improve its services and expanded its product range to include Polish private labels and brands offered on an exclusive basis. Its aim is to ensure excellent service quality and attractive products at competitive prices. The beauty stores also work to improve performance, enhance product portfolios, increase sales and consolidate their market position.The first quarter of 2016 was also successful for Pelion's third business line comprising sales to hospitals and logistics services. PGF Urtica maintained a solid market share in sales to hospitals. The objective for this business segment is to preserve the leading position on the hospital sales market and in the temperature-controlled supply chain.Pelion aims to further grow all its business lines in pursuit of its mission to promote a long and quality life, with innovation and R&D as the key growth drivers.
The table below presents the Q1 2016 financial highlights, along with comparative year-on-year data:

	Q12016	Q112015	Change*
Revenue (PLNm)	2,364.3	2,172.7	+8.8%
Gross profit (PLNm)	273.8	257.0	+6.5%
Gross margin	11.6%	11.8%	-0.2 pp
EBITDA (PLNm)	45.1	44.3	+1.8%
EBITDA margin	1.9%	2.0%	-0.1 pp
Net profit attributable to owners of the parent (PLNm)	16.5	13.9	+18.5%
Net margin	0.7%	0.6%	+0.1 pp

* Change calculated based on figures in PLN '000

For further information, please contact:
Pelion S.A. Press Office
Phone: (+48 42) 200 75 94
Fax: (+48 42) 200 75 35
Email: biuro_prasowe@pelion.eu

Pelion has operated on the market for twenty-six years, starting out as a local pharmaceutical wholesaler. In 1998, the Company shares were floated on the Warsaw Stock Exchange. Proceeds from the initial public offering fuelled the Company's dynamic growth and allowed it to embark on consolidation of the pharmaceutical wholesale market. Since its flotation, the Company has secured a top position among domestic distributors of medicinal products. Today, Pelion is one of the largest groups operating in the healthcare markets in Poland and Lithuania. It provides services across all market segments (wholesale, retail sales and sales to hospitals), targeted at individual patients, pharmacies, hospitals, and manufacturers. As a holding company, Pelion S.A. oversees all areas of the Company's operations, which are conducted by PGF S.A. and Pharmapoint Sp. z o.o. (wholesale), CEPD N.V. (retail sales), and PGF Urtica Sp. z o.o. and Pharmalink Sp. z o.o. (sales to hospitals and logistics services).