OmegaPharma to continue spending spree after strong H1 sales

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Belgian healthcare company Omega Pharma which recently acquired the
UK's Peter Black Healthcare on Friday reported a 195 per cent boost
to first-half net profit thanks to strong sales in most of its
markets and a successful restructuring process.

Belgian healthcare company Omega Pharma on Friday reported a 195 per cent boost to first-half net profit thanks to strong sales in most of its markets.

Omega Pharma's net profit rose to €19.5 million from €6.6 million in the same period the previous year. Sales totalled €270.4 million, up 37 per cent from €197.3 in the same period last year.

Sales in Germany almost doubled, and in the UK, where the company recently acquired the Peter Black Healthcare business, sales grew by 42 per cent. OmegaPharma​ subsidiary Chefaro UK took over the running of the business, which includes more than 20 vitamin and mineral brands, on 1 September.

Sales also increased by 40 per cent in the company's home market. Portugal, where turnover was 'still marginal' was the only country to disappoint in terms of sales, but the company said that next year would see several important Omega products launched in the Portuguese market.

The overall sales figure was just short of the company's 41 per cent growth forecast at the end of July.

Omega said own label products were an important growth factor, and there were also gains from business synergies, when products from one country were launched in another.

The company also cited a successful restructuring process as key to the results. Omega closed 11 sites last year and posted an earnings before interest and tax margin of 16.1 per cent, up from 14.4 per cent.

The company also issued a bullish full-year forecast, saying its estimate for sales of €600 million and pre-tax earnings per share of €2.64 "will probably be exceeded."

It added that it would continue to purchase key businesses, and expects "to accomplish several acquisitions in various countries."

"The board of directors of Omega Pharma is convinced that all key elements are present to become the European OTC-B2B market leader,"​ the company said.

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