The Consumer Health Care division reported a 6.3% rise in total revenues to € 133 million in the third quarter, representing 7.1% organic revenue growth. Growth was achieved across all geographic regions. More specifically, Germany, Russia and India were strong performers in the quarter.
|
Consumer Health Care | Key figures |
|
|
||
|
|
|
|
|
|
|
€ million |
Q3 – 2011 |
Q3 – 2010 |
Jan.–Sep. |
Jan.–Sep. |
|
Total revenues |
132.8 |
125.0 |
367.7 |
346.4 |
|
Gross margin |
90.7 |
86.3 |
252.4 |
237.5 |
|
Research and development |
–5.8 |
–5.5 |
–16.5 |
–16.4 |
|
Operating result |
16.7 |
16.2 |
33.7 |
12.3 |
|
Exceptional items |
– |
– |
– |
– |
|
Free cash flow |
4.0 |
7.7 |
13.8 |
6.3 |
|
Underlying free cash flow |
4.0 |
7.7 |
13.8 |
6.3 |
|
ROS in % |
12.6 |
13.0 |
9.2 |
3.5 |
A key driver of the organic revenue growth in the third quarter was sales of Bion®3 probiotic multivitamins, which benefited from a strong performance in France as the result of a promotional campaign. Bion®3 sales also improved considerably in Russia. Growth in the quarter also was boosted by a price increase in Venezuela and a good performance of Nasivin® nasal spray in Russia and India.
Despite an 8.8% rise in cost of sales, the division’s third-quarter gross margin rose 5.2% to € 91 million. Marketing and selling expenses rose at a slower rate than total revenues as part of management’s concerted effort to improve the cost structure of the division. Administration expenses also declined.
Consequently, the division’s operating result rose by 3.2% to € 17 million in the third quarter from € 16 million in the year-ago quarter. In the first nine months of 2011, the operating result of the division nearly tripled due to improved operating performance and one-time negative events in 2010 that were not repeated.
Consumer Health Care | Sales by region – Q3
The division’s EBIT margin for the third quarter was 12.6% compared to 13.0% in the year-ago quarter. In the first nine months of the year, the division’s EBIT margin increased to 9.2% from 3.5% in the year-ago quarter.
Udit Batra, formerly of Novartis, was appointed Head of the Consumer Health Care division effective September 1 of this year. He succeeds Peter Shotter.
back
