Second quarter 2014
1) Organic growth: Sales growth adjusted for currency effects,
acquisitions, | |disposed operations and revenues from the cooperation
agreement with Valeant.
I am satisfied with our performance during the second quarter as we have
continued to deliver healthy organic growth. Sales were up 6% in the
second quarter, corresponding to organic growth of 4%. The EBITDA margin
was 28.6% in Q2 and 29.3% for the first half year 2014. This is an
improvement of 0.8%-points compared to the same period last year.
Dymista continues to make the strongest contribution to growth, with a
positive trend in both the US and Europe in the second quarter. In
Europe, we were able o achieve substantially increased market shares in
virtually all markets after a strong allergy season. In the US, this
year's allergy season was weaker, despite that Dymista strengthened its
position in the market in the second quarter.
Also Emerging Markets contributed significantly to Meda's growth in the
quarter with organic growth of 26%, primarily driven by Russia, Turkey,
and China. Several markets in Eastern Europe, including Hungary and
Slovakia, also saw positive development in the quarter, along with
smaller markets where we have recently established ourselves, such as
South Africa. As we have previously highlighted, we continue to expect
the rate of growth on Emerging Markets to fluctuate and vary between
regions, markets, and quarters.
We are now beginning to discern the impact of measures we took within
the OTC business area, which is pleasing. In the second quarter, organic
growth amounted to 5%. We continue to focus our efforts on the programs
we implemented to strengthen and build our brands in the long term.
Sales increased by 5% in Western Europe with an organic growth of about
1%. During the quarter especially the Nordic countries and Southern
Europe developed well. Both Italy and Spain continued to show positive
The US had a weak second quarter and reported a negative organic growth
of 2%, primarily due to sales of Astepro weakened due to the launch at
risk of a generic in the quarter. This could not be offset by the
positive development of Dymista.
In 2011, Meda acquired the global sales rights to Elidel from Novartis.
Since then our studies have revealed that Elidel is an effective, safe
and well-positioned product in the treatment of atopic dermatitis, which
has boosted the product's sales trend. During the second quarter there
have been manufacturing problems, which have affected delivery capacity,
e.g.in the Middle East. At this point in time we are unable to say with
any certainty when these problems will be resolved.
On July 31, we announced the acquisition of Italian Rottapharm. The
acquisition is strategically important as it strengthens our position
within Cx / OTC and Emerging Markets and strengthens our future cash
flow. In this way, we create a platform for further growth, both
organically and through acquisitions. It shows our ability to pursue an
active acquisition strategy in order to create shareholder value.
Provided the transaction is completed as planned at the start of October
2014, Meda expects sales for full-year 2014 of around SEK 15 billion,
and the EBITDA margin to be in line with last year (excluding
integration costs and other costs associated with the transaction). This
corresponds to an expected organic growth for Meda standalone of 2-3% in
Webcasted presentation of the report on August 13 at 10:30 a.m. The
presentation can be accessed at www.meda.se/Investors/,
where a recorded version will also be available until the next interim
report is presented.
This information was brought to you by Cision http://news.cision.com
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