The Consumer Health Care division increased total revenues by 3.9% to € 118 million in the second quarter with most of the increase stemming from solid demand in European markets. Second-quarter revenues grew organically by 4.2%. In the first half of 2011, total revenues rose by 6.1% to € 235 million.
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Consumer Health Care | Key figures |
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€ million |
Q2 – 2011 |
Change |
Jan.–June |
Change |
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Total revenues |
118.3 |
3.9 |
234.9 |
6.1 |
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Gross margin |
79.6 |
1.5 |
161.7 |
6.9 |
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Research and development |
–5.8 |
–4.0 |
–10.7 |
–2.1 |
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Operating result |
9.3 |
– |
17.0 |
– |
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Exceptional items |
– |
– |
– |
– |
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Free cash flow |
–3.2 |
– |
9.8 |
– |
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Underlying free cash flow |
–3.2 |
– |
9.8 |
– |
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ROS in % |
7.9 |
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7.3 |
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Strategic-brand products such as Bion®3, Cebion®, Nasivin®, Kytta®, Femibion® and Seven Seas® nutritional supplements accounted for 54% of the division’s sales in the second quarter, excluding the mail-order business.
Sales of Bion®3 probiotic multivitamins rose 16% in the second quarter thanks to an especially strong demand in Europe while sales of Cebion® vitamins increased 2.2% due to good growth in Latin America.
Second-quarter sales of Nasivin® nasal spray declined 6.1% after a very strong first quarter.
Sales of Kytta® ointments, one of the division’s “Mobility” products, were flat following a 33% jump in the first quarter.
Global sales of Femibion®, the vitamins and minerals supplement for pregnant women and nursing mothers, rose 11% compared to the year-ago quarter, led by good performances in Germany.
Consumer Health Care | Sales by region – Q2
The division’s gross margin in the second quarter grew 1.5% following a 13% increase in the first quarter, for a first-half growth rate of 6.9%. Marketing and selling costs dropped by 10% because of fewer sales promotions in the second quarter of 2011 and lower marketing costs in China, where the size of the organization was reduced last year. The division also had lower other operating expenses compared to the year-ago quarter when a fire destroyed a warehouse for Seven Seas® products in the United Kingdom.
The division’s operating result improved to € 9.3 million in the second quarter from € –5.4 million in the year-ago quarter. This followed an excellent improvement in the first quarter. For the half year, the operating result rose to € 17 million from € –3.9 million. This improvement is reflected in the division’s ROS (operating result/total revenues), which rose to 7.9% in the second quarter of 2011 from –4.8% in the year-ago quarter. In the first half of 2011, ROS was 7.3% compared to –1.8% in the first half of 2010. Free cash flow for the second quarter was € –3.2 million compared to € 1.1 million in the year-ago quarter.
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