The Consumer Health Care division increased total revenues by 1.7% to EUR 125 million in the third quarter with currency devaluations in Venezuela balanced by the stronger British pound and Indonesian rupiah. The division’s only major market to show a decline was Latin America.
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Consumer Health Care | Key figures |
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EUR million |
3rd quarter |
3rd quarter |
Jan.–Sep. |
Jan.–Sep. |
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Total revenues |
125.0 |
122.9 |
346.4 |
334.6 |
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Gross margin |
86.3 |
86.6 |
237.5 |
231.2 |
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Research and development |
–5.5 |
–4.2 |
–16.4 |
–12.8 |
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Operating result |
16.2 |
21.4 |
12.3 |
39.7 |
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Exceptional items |
– |
– |
– |
– |
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Free cash flow |
7.7 |
11.5 |
6.3 |
29.3 |
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Underlying free cash flow |
7.7 |
11.5 |
6.3 |
29.3 |
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ROS in % |
13.0 |
17.4 |
3.5 |
11.9 |
Global sales of Femibion®, the vitamins and minerals supplement for pregnant women and nursing mothers, jumped 40% compared to the year-ago quarter, boosted by high demand in Germany and Poland.
Sales of Bion® probiotic multivitamins rose 13%, driven by demand in France and Great Britain. Sales of strategic Mobility products such as Seven Seas® supplements, Kytta® and Flexagil® rose 7.5% during the third quarter. The vitamin C products marketed under the Cebion® brand recorded a 30% drop in sales, mostly as a result of Venezuela.
Poland and India led the demand for Nasivin® nasal spray, sales of which rose 24% during the third quarter.
Consumer Health Care | Sales by region – Q3
Strategic-brand products, such as Seven Seas®, Kytta®, Kidabion®, Nasivin® and Cebion®, excluding the mail-order business, now account for 58% of the division’s sales.
Despite higher production costs, the division’s gross margin was steady at EUR 86 million in the third quarter. Marketing and selling costs, as well as research and development spending, rose again in the third quarter as the division continued to implement its strategy of focusing on strategic brands to drive growth.
Restructuring activities in China began in the third quarter and are expected to continue into the fourth quarter.
Therefore, the division’s third-quarter operating result declined 24% to EUR 16 million from an atypical high of EUR 21 million in the year-ago quarter. The third-quarter ROS dropped to 13.0% compared to 17.4% in the year-ago quarter of 2009. Free cash flow for the third quarter was EUR 7.7 million compared to EUR 11.5 million in the year-ago quarter.
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