Consumer Health

Key Data – Consumer Health

 

 

Q2 2015

Q2 2016

 

Change

 

H1 2015

H1 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

2015 figures restated; Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see “Calculation of EBIT(DA) Before Special Items.”

2

For definition see “Statements of Cash Flows.”

Sales

 

1,590

1,553

 

–2.3

+4.0

 

3,146

3,073

 

–2.3

+3.1

Changes in sales

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+0.3%

+1.2%

 

 

 

 

+2.9%

–0.1%

 

 

 

Price

 

+2.9%

+2.8%

 

 

 

 

+2.9%

+3.2%

 

 

 

Currency

 

+6.9%

–6.3%

 

 

 

 

+6.3%

–5.4%

 

 

 

Portfolio

 

+60.5%

0.0%

 

 

 

 

+57.5%

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

409

415

 

+1.5

+7.3

 

865

826

 

–4.5

–0.2

North America

 

744

701

 

–5.8

–3.2

 

1,425

1,378

 

–3.3

–2.5

Asia / Pacific

 

193

201

 

+4.1

+10.9

 

373

402

 

+7.8

+12.6

Latin America / Africa / Middle East

 

244

236

 

–3.3

+15.2

 

483

467

 

–3.3

+18.4

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA1

 

301

297

 

–1.3

 

 

581

661

 

+13.8

 

Special items

 

(61)

(31)

 

 

 

 

(150)

(50)

 

 

 

EBITDA before special items1

 

362

328

 

–9.4

 

 

731

711

 

–2.7

 

EBITDA margin before special items1

 

22.8%

21.1%

 

 

 

 

23.2%

23.1%

 

 

 

EBIT

 

191

190

 

–0.5

 

 

365

433

 

+18.6

 

Special items

 

(61)

(32)

 

 

 

 

(150)

(64)

 

 

 

EBIT before special items1

 

252

222

 

–11.9

 

 

515

497

 

–3.5

 

Gross cash flow2

 

241

237

 

–1.7

 

 

468

522

 

+11.5

 

Net cash flow2

 

161

241

 

+49.7

 

 

446

438

 

–1.8

 

Second quarter of 2016

Sales

Sales of Consumer Health rose by 4.0% (Fx & portfolio adj.) in the second quarter of 2016 to €1,553 million. Business developed well in the Latin America / Africa / Middle East, Europe and Asia / Pacific regions, while sales in North America were down compared with a strong prior-year quarter. Our Claritin™, Aspirin™, Bepanthen™ / Bepanthol™ and Canesten™ brands posted very high growth rates.

Best-Selling Consumer Health Products

 

 

Q2 2015

Q2 2016

 

Change

 

H1 2015

H1 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

2015 figure for Aleve™ restated; Fx adj. = currency-adjusted

1

Trademark rights and distribution only in certain countries outside the European Union

Claritin™

 

167

178

 

+6.6

+11.0

 

369

365

 

–1.1

+0.9

Aspirin™

 

101

102

 

+1.0

+8.1

 

221

218

 

–1.4

+4.7

Aleve™

 

121

110

 

–9.1

–5.1

 

218

200

 

–8.3

–5.4

Bepanthen™ / Bepanthol™

 

88

95

 

+8.0

+20.7

 

182

187

 

+2.7

+15.4

Coppertone™

 

99

94

 

–5.1

–0.9

 

182

175

 

–3.8

–1.8

Canesten™

 

65

75

 

+15.4

+19.0

 

129

139

 

+7.8

+20.1

Dr Scholl’s™ 1

 

78

65

 

–16.7

–13.6

 

136

125

 

–8.1

–6.9

Alka-Seltzer™ product family

 

47

45

 

–4.3

+0.8

 

113

102

 

–9.7

–8.1

One A Day™

 

52

55

 

+5.8

+5.8

 

95

99

 

+4.2

+4.3

Berocca™

 

40

35

 

–12.5

–4.4

 

79

84

 

+6.3

+13.5

Total

 

858

854

 

–0.5

+4.8

 

1,724

1,694

 

–1.7

+2.8

Proportion of Consumer Health sales

 

54%

55%

 

 

 

 

55%

55%

 

 

 

Sales by product

  • Currency-adjusted sales of the antihistamine Claritin™ rose considerably, particularly in China. Despite a weak allergy season, business in the United States developed positively, due primarily to the launch of the ClariSpray™ nasal spray.
  • Sales of Aspirin™ were up in all regions year on year on a currency-adjusted basis, with especially attractive gains in Latin America and the United States. Including business with Aspirin™ Cardio, which is reported under Pharmaceuticals, sales climbed by 12.7% (Fx adj.) to €240 million (Q2 2015: €228 million).
  • Business with our analgesic Aleve™ declined overall, mainly as a result of the deteriorating economic situation in Brazil and increased competitive pressure in the United States.
  • We posted significant currency-adjusted sales gains for our Bepanthen™ / Bepanthol™ wound and skin care products, particularly in Europe. Intensified marketing activities in Russia and the expansion of the portfolio to include Bepanthen Sun™ in France played a major role in this increase.
  • Currency-adjusted sales of our sunscreen product Coppertone™ moved back slightly against the prior-year quarter, due primarily to a weather-related decline in sales in the United States that was only partially offset by sales gains in China.
  • The considerable increase in sales of the skin and intimate health brand Canesten™ is attributable to expanded volumes in all regions, particularly in China and Germany.
  • Our Dr. Scholl’s™ foot care products registered a decline in sales because of a weaker market environment and increased competitive pressure in the United States.
  • Business with our One A Day™ vitamin product benefited from factors including product line extensions in the United States.
  • Sales of our multivitamin product Berocca™ were down as expected, particularly in Asia / Pacific. This was attributable in part to higher sales in the previous quarter.

Earnings

EBITDA before special items of Consumer Health declined by 9.4% to €328 million in the second quarter of 2016 (Q2 2015: €362 million). The earnings contributions from the good business performance and cost synergies were not sufficient to offset the higher selling expenses as well as allocation and currency effects of around €25 million.

EBIT was level year on year at €190 million (−0.5%), including special charges of €32 million (Q2 2015: €61 million). These largely reflected costs of €29 million for the integration of acquired businesses.

First half of 2016

Sales

Sales of Consumer Health in the first half of 2016 increased by 3.1% (Fx & portfolio adj.) to €3,073 million. Business development in Latin America and in the Asia / Pacific region was especially positive, whereas sales declined in the United States.

Earnings

EBITDA before special items decreased slightly by 2.7% in the first half of 2016, to €711 million (H1 2015: €731 million). The earnings contributions from the good business performance and cost synergies were not sufficient to offset the higher selling expenses as well as allocation and currency effects of around €40 million.

EBIT advanced by a substantial 18.6% to €433 million (H1 2015: €365 million), including special charges of €64 million (H1 2015: €150 million). These reflected charges of €47 million for the integration of acquired businesses and €17 million for efficiency improvement measures.