Consumer Health Care | Sales by region
In many markets, negative currency effects seriously undermined our strong organic growth. The most significant impact was felt in the United Kingdom, a key market, as well as in the traditionally important markets of Mexico and Venezuela. By contrast, positive currency effects were registered in the growth markets of eastern Europe, for example Poland, the Czech Republic and Slovakia, though these were insufficient to offset the general trend.
Good performance in France
Europe remained our most important market. Sales totaled € 306 million. We performed well in the most important core markets, in many cases counteracting weak market developments. In France, where the market for over-the-counter prescription-free medicines declined by 3.2% in 2008, we increased sales by 4.2% to € 94 million in the same period. France was thus once again our largest market. Our subsidiary Merck Médication Familiale saw continued success there with the probiotic multivitamin brand Bion®, achieving a 21% increase in sales to € 23 million. Bion® is now the fifth-leading brand in the French OTC market. The strategic brand Femibion® for pregnant women and nursing mothers also posted a strong 12% increase in sales. Higher sales of strategic brands more than offset the decline in sales of cosmeceuticals from the local dermatology line, which fell to € 26 million. The success of our approach of focusing the business more strongly on strategic brands is apparent here. Merck Médication Familiale now ranks second in both the dietary supplement and OTC markets of France.
Portfolio streamlined in the United Kingdom
Sales in the United Kingdom declined by 16% to € 64 million, primarily as a result of the weakness of the British pound, which had a double-digit currency impact. As a consequence, sales by Seven Seas, our UK subsidiary, decreased by 12%. In local currency, however, sales increased by 2.6%. Seven Seas thus achieved its goal of stabilizing the business despite a 4% decline in the vitamins and supplements market. Compensation payments of around € 4 million from a supplier whose product impurities triggered a recall in 2006 had a positive effect.
At the end of September, we also sold the Petcare business for a low seven-digit figure, thus moving ahead with our plan to streamline the portfolio and divest non-core assets. Sales by Lamberts Healthcare, our mail order business with high-quality vitamins and minerals, stagnated in local currency terms in a weak market.
Kytta® gains market share in Germany
Sales in Germany increased by 16% to € 46 million in a market that declined by 2.5%. The largest contribution to sales came from the plant-based ointment Kytta® for muscle and joint pain. Following a successful advertising campaign, sales increased by 77% to € 14 million in 2008. As a result, Kytta® considerably increased its market share in Germany. Sales of the metafolin product Femibion® also developed favorably, increasing 14% to € 15 million.
Acquisition in Belgium
We increased sales in Belgium by 18% to € 18 million. In particular, we achieved strong sales gains with the strategic brands sold in Belgium under the Omnibionta® umbrella: Sales of Femibion® and Bion®3 increased by 43% and 24% respectively. Sales of the cold remedy Nasivin® grew by 6.7%. In December, we acquired the company Bio-Fyt for € 30 million in order to strengthen our market position and to expand the product portfolio. Bio-Fyt develops, markets and sells mobility, women’s health and everyday health-protection products. The acquisition of Bio-Fyt is therefore in line with our strategy of focusing on specific health themes and achieving leading positions within these defined segments.
Expanding business in eastern Europe
Business in the growth markets of eastern Europe developed dynamically. In Poland, sales totaled € 26 million. Kidabion®, which was launched in Poland 2007, continued to show dynamic growth. Sales of the multivitamin product for children increased by 27%, confirming its position as the market leader. Sales of Femibion® climbed 61% to € 3.8 million and those of Nasivin® rose 23% to € 5.8 million in Poland. We also grew strongly in other eastern European countries, including the Czech Republic (by 31% to € 4.0 million), Hungary (by 32% to € 4.9 million) and Slovakia (by 6.3% to € 2.4 million).
Global expansion
In Venezuela, we solidified our strong position. Apart from the success of Cebion®, sales of which grew by 27% to € 7.9 million, sales of the fish oil product Maxepa® for cardiovascular care surged again, rising 51% to € 5.7 million. Both products expanded their market leadership positions. Total sales in Venezuela grew by 27% to € 19 million, despite strong negative currency effects.
In India, sales grew by 47% to € 6.6 million despite currency effects. Nasivin® accounted for more than one-half of sales. This successful performance was driven by a dedicated sales force, which we established in 2008.
The Consumer Health Care division has been present in China since 2007 with the multivitamin syrup Kidabion®. We have meanwhile expanded distribution to five provinces and 12 major cities. In order to further expand the business in this key growth market, we established a legal entity based in Shanghai on January 1, 2009.
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