2004 Half year results:Further improvement in profitability

The Board of Directors, meeting on 2 September 2004 under the chairmanship of Albert Saporta approved the consolidated financial statements at 30 June 2004.

2004 1st half year group sales increased by 9% over the same period last year:

In France, growth remained strong at 15%.  The new treatments are 81% administered by the sublingual route compared to 70% in 2003.

Subsidiaries[1] remained well focused and growth more than offset the decline on the price of vaccines in Germany.  Net sales grew by 3%.

Distributors marked a temporary pause with growth of 1% due to a significant transfer of orders to the second half year.

The Operating margin grew by close to 5 points due to significant economies in purchases and logistics and further productivity gains.  This contributed towards the funding of the tablets programme, in line with the group’s strategy.

Operating profit thus grew by 25% over the same period last year to represent 16.7% of sales, compared to 14.6% of sales for the 1st half of 2003.

Net profit increased by 33% to represent 9.2% of sales, compared to 7.5% of sales for the 1st half of 2003. 

Net borrowings decreased by 62% as a result of a further reduction in working capital requirements.

Prospects

1st half year sales confirm the forecast of annual growth in excess of 7% and continued improvement in the gross margin, authorising an increase in R&D costs to develop allergen tablets.


[1] Germany, Italy, Belgium, Spain and Portugal