Consumer Health

Key Data – Consumer Health

 

 

Q3 2015

Q3 2016

 

Change

 

9M
2015

9M
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

 

1,424

1,425

 

+0.1

+3.6

 

4,570

4,498

 

–1.6

+3.3

Change in sales

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

–1.8%

+1.2%

 

 

 

 

+1.2%

+0.3%

 

 

 

Price

 

+3.5%

+2.4%

 

 

 

 

+3.1%

+3.0%

 

 

 

Currency

 

+1.3%

–3.5%

 

 

 

 

+4.5%

–4.9%

 

 

 

Portfolio

 

+38.4%

0.0%

 

 

 

 

+50.8%

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

410

394

 

–3.9

–1.2

 

1,275

1,220

 

–4.3

–0.5

North America

 

580

600

 

+3.4

+4.1

 

2,005

1,978

 

–1.3

–0.6

Asia / Pacific

 

177

185

 

+4.5

+4.0

 

550

587

 

+6.7

+9.8

Latin America / Africa / Middle East

 

257

246

 

–4.3

+9.7

 

740

713

 

–3.6

+15.4

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA1

 

308

301

 

–2.3

 

 

889

962

 

+8.2

 

Special items

 

(32)

(27)

 

 

 

 

(182)

(77)

 

 

 

EBITDA before special items1

 

340

328

 

–3.5

 

 

1,071

1,039

 

–3.0

 

EBITDA margin before special items1

 

23.9%

23.0%

 

 

 

 

23.4%

23.1%

 

 

 

EBIT

 

209

194

 

–7.2

 

 

574

627

 

+9.2

 

Special items

 

(32)

(29)

 

 

 

 

(182)

(93)

 

 

 

EBIT before special items1

 

241

223

 

–7.5

 

 

756

720

 

–4.8

 

Gross cash flow2

 

207

236

 

+14.0

 

 

675

758

 

+12.3

 

Net cash flow2

 

230

215

 

–6.5

 

 

676

653

 

–3.4

 

Third quarter of 2016

Sales

Sales of Consumer Health rose by 3.6% (Fx & portfolio adj.) in the third quarter of 2016 to €1,425 million. Business developed positively in the Latin America / Africa / Middle East, North America and Asia / Pacific regions. In Europe, however, sales declined slightly compared with a strong prior-year quarter.

Best-Selling Consumer Health Products

 

 

Q3 2015

Q3 2016

 

Change

 

9M 2015

9M 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Fx adj. = currency-adjusted

1

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

Claritin™ 1

 

123

118

 

–4.1

–4.8

 

492

483

 

–1.8

–0.5

Aspirin™

 

124

119

 

–4.0

+0.5

 

345

337

 

–2.3

+3.2

Aleve™

 

90

101

 

+12.2

+12.7

 

308

301

 

–2.3

–0.1

Bepanthen™ / Bepanthol™

 

88

85

 

–3.4

–0.8

 

270

272

 

+0.7

+10.1

Canesten™

 

72

66

 

–8.3

+4.7

 

201

205

 

+2.0

+14.6

Coppertone™ 1

 

27

27

 

.

–5.0

 

209

202

 

–3.3

–2.3

Dr Scholl’s™ 1

 

55

55

 

.

–1.5

 

191

180

 

–5.8

–5.3

Alka-Seltzer™ product family

 

57

64

 

+12.3

+15.0

 

170

166

 

–2.4

–0.4

One A Day™

 

51

56

 

+9.8

+11.8

 

146

155

 

+6.2

+6.9

Elevit™

 

45

51

 

+13.3

+17.9

 

119

134

 

+12.6

+19.7

Total

 

732

742

 

+1.4

+4.0

 

2,451

2,435

 

–0.7

+3.4

Proportion of Consumer Health sales

 

51%

52%

 

 

 

 

54%

54%

 

 

 

Sales by product

  • Business with our antihistamine Claritin™ receded in markets including China and the United States.
  • Sales of Aspirin™ were level year on year on a currency-adjusted basis. Including business with Aspirin™ Cardio, which is reported under Pharmaceuticals, sales climbed by 1.1% (Fx adj.) to €247 million (Q3 2015: €254 million).
  • We registered substantial sales growth for our analgesic Aleve™ that was driven by positive business development in the United States, where we benefited in part from a product line extension.
  • Sales of our Bepanthen™ / Bepanthol™ wound and skin care products were down slightly. Positive sales development in Germany only partly offset negative effects in Brazil.
  • The currency-adjusted increase in sales of the skin and intimate health brand Canesten™ was partly attributable to a product line extension in Germany.
  • Business with our sunscreen product Coppertone™ was down against the prior-year quarter due to lower sales in the United States.
  • Our Dr. Scholl’s™ foot care products saw sales fall slightly. Declines in the United States due to increased competitive pressure and a weak market environment were only partly offset by positive business development in Canada.
  • We achieved substantial sales gains with our Alka-Seltzer™ family of products to treat gastric complaints and cold symptoms and our One A Day™ vitamin product that were mainly attributable to product line extensions in the United States.
  • Business with our Elevit™ vitamin product expanded noticeably, especially in China.

Earnings

EBITDA before special items of Consumer Health declined by 3.5% to €328 million in the third quarter of 2016 (Q3 2015: €340 million). The earnings contributions from the positive business development were not sufficient to offset the higher cost of goods sold and currency effects of around minus €20 million.

EBIT fell by 7.2% to €194 million, including special charges of €29 million (Q3 2015: €32 million). These largely reflected costs of €23 million for the integration of acquired businesses.

First nine months of 2016

Sales

Sales of Consumer Health in the first nine months of 2016 increased by 3.3% (Fx & portfolio adj.) to €4,498 million. Business development in Latin America and in the Asia / Pacific region was especially positive, whereas sales were level year on year in Europe and North America.

Earnings

EBITDA before special items decreased by 3.0% in the first nine months of 2016, to €1,039 million (9M 2015: €1,071 million). The earnings contributions from the good business performance were not sufficient to offset the higher cost of goods sold and currency effects of around minus €60 million.

EBIT advanced by a clear 9.2% to €627 million (9M 2015: €574 million), including special charges of €93 million (9M 2015: €182 million). These reflected costs of €70 million for the integration of acquired businesses and €19 million for efficiency improvement measures.