Meda AB (publ) – Interim report, January–September 2012
- Group net sales reached SEK 9,796 million (9,400). At fixed currency rates, sales increased 5%.
- EBITDA amounted to SEK 3,043 million (3,493), corresponding to a 31.1% margin (37.2).
- Operating profit amounted to SEK 1,442 million (1,986).
- Profit after tax totaled SEK 823 million (1,098).
- Earnings per share reached SEK 2.79 (3.65).
- Cash earnings per share reached SEK 6.18 (7.13).
- Forecast for full-year 2012:
“The Meda Group expects to achieve sales close to SEK 13,000 million and an EBITDA margin of around 30 percent.”
Organic sales growth for the Group in the third quarter was 1%, which was slightly better than previous quarters. Sales for the third quarter were affected by significant negative currency effects and planned lower revenues from the collaboration agreement with Valeant. Outside the United States, organic growth was 5% in the third quarter, compared with 4% for the first two quarters. In the United States, generic competition for some older products continues to affect the Group’s total sales growth. However, as previously announced, I expect Dymista will be the solution in the US.
We began the US launch of Dymista in September. The first stage will focus on a well-defined audience of about 6,000 allergy specialists. We call this phase the pre-launch. Major activities will be conducted in parallel at conventions and scientific meetings. The base that is built during this period is crucial to the next phase, the launch, which begins in the spring of 2013. During this phase, the audience will gradually be increased to about 20,000 doctors consisting of specialists and some GPs.
It is too early to draw any conclusions about Dymista but we have received very positive feedback during the initial pre-launch from prescribers and patients alike. Dymista presents a unique opportunity for Meda and it is important to establish the product properly.
Besides Dymista, we are continuing the launches of certain OTC products and build-up in Emerging Markets. The launch of OTC products SB12 and Nalox outside the Nordic countries is progressing as planned. Their launch has begun on about a dozen markets in Europe and other markets will be gradually added. OTC products now constitute about 25% of Group sales and an organic sales growth of 18% was noted in the third quarter.
Initiatives in Emerging Markets continue and it is nice to note organic sales growth of 14% after a strong quarter in Russia, Mexico, Turkey, and some other countries.
We have an exciting journey ahead of us with the launch of Dymista, expansion into Emerging Markets, and a broader platform for OTC products. Concurrently, there are external factors that have a negative effect on Meda’s sales and earnings. Some southern European countries are suffering from declining sales and we continually adapt our costs to maintain profitability. The storm Sandy has affected our distribution and short-term work on the East Coast in the US. Fortunately no one was hurt of our employees and the work of pre-launching Dymista is now proceeding.
Group President and CEO
For more information, contact
Anders Larnholt, Phone 46 8-630 19 62
VP Corporate Development and Investor Relations 46 709-458 878
The company’s auditors did not review this interim report.
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