ALTANA AG: Profit increase by around 50% in the first half of 2001
Consolidated sales within the first half of the year increased by 24% to 1,136 million euro (previous year: 915 million euro), thus smoothly continuing the dynamic business trend of the past years. Adjusted for Exchange rate effects and smaller acquisitions the corresponding operative growth amounts to 19%.
Compared to sales, profit before taxes again experienced disproportionate growth amounting to 235 million euro by the end of the first half of the year – up 49%. The Group’s return on sales improved by 3.4 percentage points to 20.7% and thus for the for first time exceeded the long-term 20% target.
Especially the consistent internationalisation of the business activities is driving ahead the gratifying development. Foreign sales rose by 28% to 897 million euro. Altogether ALTANA ‘s degree of internationalisation further increased. Mid-year amounting to 79%, it was two percentage-points higher year-on-year. Domestic sales, showing no remarkable sign of growth in the corresponding period last year, were up 13% to 239 million euro.
Investment activities also experienced significant growth. In the period under review 83 million euro flowed into the world-wide infrastructure, 60% more than previous year. The number of employees is also rising continuously. Mid-year it reached around 8,800 employees, up 4%. By the end of 2001 ALTANA will employ about 9,000 people, resulting in 500 new workplaces in one year.
Pharma: Significant growth in profit and sales After an excellent second quarter, sales of the pharmaceuticals division grew significantly and amounted to 769 million euro at mid year, a plus of 31%. Within the period under review the strategic core unit of the division, ethical therapeutics, substantially grew by 37%. It now makes up 80% of the divisional sales.
Even more distinctive than the sales activities is the pharmaceutical division’s steep profit curve. Profits increased by 96% to 188 million euro, almost doubling the already high year-earlier profit level. This effect was caused by profit contributions from US-pharmaceutical business, which, however, since the introduction of Pantoprazole in May 2000, only poured in for two months last year (base effect).
As a result return on sales of the pharmaceuticals division for the first six months amounts to 24.5%, the EBITDA-margin to 27.9%.
At the same time expenditures on research and development rose by 39% to 115 million euro, corresponding to around 19% of therapeutic sales. “Raising the division’s innovative force, internationalising research and forming a network with biotech-companies, remains one of the most important strategic corporate goals”, says chairman of the ALTANA-board Nikolaus Schweickart.
Pantoprazole: Sales figures raised again The innovative gastrointestinal product Pantoprazole remains the driving force behind growth. Within the first half of 2001 global sales amounted to 313 million euro, an increase of 75% year-on-year. Including sales of all domestic and foreign partners, global market sales of the proton-pump-inhibitor (PPI) amounted to 635 million euro, posting a 129% growth year-on-year.
Within the US Pantoprazole’s share of new subscriptions within the PPI-market has reached 9.9%. “Pantoprazole is developing into a real blockbuster within the US-market. In regard to the excellent development of the ALTANA product within the world’s largest pharmaceutical-market, we therefore raise our US sales forecast 2001 by 10% to achieve 500 to 550 million euro,” says Schweickart. “Demand in other important pharmaceutical markets, especially Europe and Latin America, also grew strongly. We therefore should be able to top global 2001 market sales, which we had already raised from 900 million euro to 1.1 billion euro after the first quarter. “
Chemicals: High level despite unfavourable environment Sales of the chemicals division rose by
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