The Consumer Health Care division increased total revenues by 8.4% to EUR 117 million in the first quarter. This included an organic growth rate of 5.8% and a 2.6% boost from positive currency effects. Except for Asia, where sales were steady, all other major markets showed improvement. Latin America reported a 20% increase in sales.
|
Consumer Health Care | Key figures |
|
XLS |
|
|
|
|
|
EUR million |
Q1 – 2011 |
Q1 – 2010 |
|
Total revenues |
116.6 |
107.6 |
|
Gross margin |
82.1 |
72.8 |
|
Research and development |
–4.8 |
–4.8 |
|
Operating result |
7.7 |
1.5 |
|
Exceptional items |
– |
– |
|
Free cash flow |
13.0 |
–2.5 |
|
Underlying free cash flow |
13.0 |
–2.5 |
|
ROS in % |
6.6 |
1.4 |
Global sales of Nasivin® nasal spray jumped by 19%, driven by exceptional demand in Russia. Nasivin® is part of the division’s “Cough and Cold” business, which improved its sales by 17% in the first quarter of 2011 compared to the year-ago quarter.
Sales of Bion®3 probiotic multivitamins rose 11% due to demand in France and Chile while sales of Cebion vitamins improved 17%. These products are part of the division’s “Everyday Health Protection” business, which posted an overall sales increase of 8.8% in the first quarter.
Sales of “Mobility” products such as Seven Seas® supplements, Kytta® and Flexagil® rose 13% during the first quarter. Sales of Kytta® ointments jumped 33%, led by demand in Germany.
Global sales of Femibion®, the vitamins and minerals supplement for pregnant women and nursing mothers, rose 9.0% compared to the year-ago quarter. This product is a leader in the division’s “Women’s and Children’s Health” business, which registered an 8.1% increase in first-quarter sales.
Consumer Health Care | Sales by region – Q1
Strategic-brand products such as Seven Seas®, Kytta®, Kidabion®, Nasivin® and Cebion® now account for 59% of the division’s sales, excluding the mail-order business.
The risk provision set up owing to the currency situation in Venezuela could be partly offset by payments received from Venezuela and therefore had a positive impact on the gross margin.
The division’s gross margin in the first quarter improved 13% to EUR 82 million. Marketing and selling costs rose 6.8% in the first quarter as the division continued to pursue its strategy of focusing on strategic brands to drive growth. Spending on research and development was unchanged at EUR 4.8 million.
The division’s first-quarter operating result increased fivefold to EUR 7.7 million from EUR 1.5 million in the year-ago quarter. This improvement was reflected in ROS (operating result/total revenues), which rose to 6.6% in the first quarter of 2011 from 1.4% in the year-ago quarter. Free cash flow for the first quarter was EUR 13.0 million compared to EUR –2.5 million in the year-ago quarter.