The Consumer Health division manufactures and markets over-the-counter pharmaceuticals as well as health supplements. Consumer Health focuses on a number of well-known strategic brands such as Neurobion®, Bion®3, Nasivin®, Femibion®, Seven Seas®, and Dolo-Neurobion® and contributed 7% to Group sales, as well as 5% to EBITDA pre one-time items (excluding Corporate and Other), in the third quarter of 2014. Consumer Health has high market penetration in Europe, Latin America and Southeast Asia and is generating very strong growth in India, Indonesia and Brazil, which have firmly established themselves among the division’s top-ten markets in terms of sales.
Global megatrends favor future growth of Consumer Health. People are becoming more health-conscious and concerned with their own physical well-being. Preventive health care and preventive medications are becoming increasingly important – both in established and emerging markets, characterized by a growing middle class with specific needs.
On January 1, 2014, two product groups from Merck Serono were transferred to Consumer Health. These are Neurobion®/Dolo-Neurobion®, a leading global brand in the vitamin B segment, and Floratil®, a leading brand in the probiotic antidiarrheal segment in Brazil.
Consequently, the division is significantly increasing in size. With the transferred sales of € 265 million, 2013 divisional sales increased on a pro forma basis by 55% to € 742 million. The transfer of the two strong brands makes better use of the potential of the consumer-oriented business model of Consumer Health. Furthermore, the division will expand its presence in the Emerging Markets region. This is a step in the division’s journey towards having at least three leading brands and achieving a market share of at least 3% in each of its key markets. The share of Consumer Health sales accounted for by Emerging Markets increased from 26% (unadjusted year-earlier figure) to 52% in the third quarter as a result of the transfer. The effects of the product group transfers on Consumer Health’s figures for 2013 are shown in the table below.
Transfer of Neurobion® and Floratil® from Merck Serono
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Consumer Health | Adjusted |
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2013 reported |
2013 adjustment |
2013 adjusted |
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€ million |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
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Total revenues |
116.3 |
116.8 |
131.4 |
115.1 |
65.5 |
63.3 |
70.2 |
66.3 |
181.8 |
180.1 |
201.7 |
181.4 |
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Sales |
116.1 |
115.6 |
131.0 |
114.2 |
65.5 |
63.3 |
70.2 |
66.2 |
181.7 |
178.9 |
201.2 |
180.4 |
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Operating result (EBIT) |
11.8 |
18.1 |
21.1 |
11.2 |
25.0 |
16.1 |
34.0 |
24.8 |
36.8 |
34.2 |
55.1 |
36.0 |
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Margin |
10.1 |
15.7 |
16.1 |
9.8 |
– |
– |
– |
– |
20.2 |
19.1 |
27.4 |
20.0 |
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EBITDA |
14.4 |
20.4 |
23.1 |
13.2 |
25.0 |
16.1 |
34.0 |
24.8 |
39.4 |
36.5 |
57.1 |
38.0 |
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Margin |
12.4 |
17.7 |
17.6 |
11.5 |
– |
– |
– |
– |
21.7 |
20.4 |
28.4 |
21.1 |
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EBITDA pre one-time items |
14.3 |
19.3 |
24.2 |
14.6 |
25.0 |
16.1 |
34.0 |
24.8 |
39.3 |
35.5 |
58.2 |
39.4 |
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Margin |
12.3 |
16.7 |
18.4 |
12.8 |
– |
– |
– |
– |
21.6 |
19.8 |
28.9 |
21.9 |
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Business free |
6.7 |
25.3 |
12.3 |
39.5 |
14.1 |
25.6 |
24.6 |
24.3 |
20.8 |
50.9 |
36.9 |
63.8 |
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2013 reported |
2013 adjustment |
2013 adjusted |
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€ million |
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Jan.– June |
Jan.–Sept. |
Jan.–Dec. |
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Jan.– June |
Jan.–Sept. |
Jan.–Dec. |
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Jan.– June |
Jan.–Sept. |
Jan.–Dec. |
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Total revenues |
|
233.1 |
364.5 |
479.6 |
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128.8 |
199.1 |
265.4 |
|
361.9 |
563.6 |
745.0 |
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Sales |
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231.8 |
362.7 |
476.9 |
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128.8 |
199.1 |
265.2 |
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360.6 |
561.8 |
742.1 |
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Operating result (EBIT) |
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29.9 |
51.0 |
62.2 |
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41.1 |
75.1 |
99.9 |
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71.0 |
126.1 |
162.1 |
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Margin |
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12.9 |
14.1 |
13.0 |
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– |
– |
– |
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19.7 |
22.4 |
21.8 |
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EBITDA |
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34.8 |
57.9 |
71.1 |
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41.1 |
75.1 |
99.9 |
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76.0 |
133.0 |
171.0 |
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Margin |
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15.0 |
16.0 |
14.9 |
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– |
– |
– |
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21.1 |
23.7 |
23.0 |
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EBITDA pre one-time items |
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33.6 |
57.8 |
72.5 |
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41.1 |
75.1 |
99.9 |
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74.8 |
132.9 |
172.4 |
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Margin |
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14.5 |
15.9 |
15.2 |
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– |
– |
– |
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20.7 |
23.7 |
23.2 |
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Business free |
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32.1 |
44.4 |
83.9 |
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39.7 |
64.3 |
88.6 |
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71.8 |
108.7 |
172.5 |