2003 1st Half-Year Group Results:Continuation of improving results

The Board of Directors, meeting on 24 September 2003 under the chairmanship of Albert Saporta, approved Stallergènes Group’s consolidated financial statements for the 1^st half-year ending 30 June 2003.

2003 1^st half-year Group sales increased by 19.5% over the same period last year.

• In France, growth remained very sustained, with 70% of new treatments administered sublingually. 
• Subsidiaries’[1] operations remain well focused, with growth largely compensating for the drop in medication prices in Germany.  

• Distributors’ sales increased by 25% during this period, sustained by the development of operations in Eastern Europe (Czech Republic, Slovakia, Poland).

Gross profit improved by nearly 5 basis points as a result of good cost control, which enabled the Group to finance a 42% increase in R&D expenditures, in line with Group strategy.

Operating profit accordingly improved by 52% over the same period last year, and now amounts to 14.6% of sales, compared to 11.5% of sales for the 1^st half of 2002.

Net profit improved to 7.5% of sales, compared to 4.2% of sales for the 1^st half of 2002.

Net borrowings decreased by 30% as a result of an increase in cash flow from operating activities and a reduction in Working Capital Requirements (WCR) to 63 days from 75 days.  

2003 full year outlook

2^nd half-year sales will be affected by a weak pollen season in 2003 and a seasonal rebalancing of sales.  Nevertheless, Group prospects confirm the Group’s initial forecasts of double-digit annual sales growth, together with significant growth in profitability for its 2003 financial year.

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