Consumer Health Care | Key figures |
[ XLS ] |
||
|
|
|
|
€ million |
2007 |
2006 |
Δ in % |
420 |
400 |
5.0 |
|
Gross margin |
284 |
264 |
7.5 |
12 |
10 |
16 |
|
60 |
55 |
9.4 |
|
– |
– |
– |
|
47 |
59 |
–20 |
|
Free cash flow adjusted for acquisitions and disposals |
47 |
59 |
–20 |
ROS in % |
14.2 |
13.6 |
– |
Total revenues in the Consumer Health Care (CHC) division increased by 5.0% to €420 million in 2007, slightly exceeding total market growth as calculated by the market research firm Nicholas Hall. The division recorded the fifth consecutive year of organic growth ranging between 6% and 8%. According to market researchers at Nicholas Hall, CHC is thus currently the fourth fastest growing business among the world’s top 20 consumer health care companies. The division generated this strong growth mainly as a result of the healthy performance of its strategic brands. Increased marketing activities in 2007 for these products were financed to some extent by the proceeds from the divestment of the non-strategic French brand St. Gervais in the second quarter of 2007.
Gross margin rose by 7.5%. This was due in particular to increased sales of high-margin products such as Femibion® and Diabion®.
The division’s operating result increased by 9.4% to €60 million in 2007, with strong markets responding to higher spending on marketing and sales.
Free cash flow declined by 20% to €47 million. This is due on the one hand to higher investments in production facilities and on the other hand to the increase in working capital in order to conduct a higher level of business. Return on sales (ROS) increased by 14.2%.
