Merck 2008 Annual Report Download - page 53

48 | Merck Annual Report 2008
Good performance in France
Europe remained our most important market. Sales totaled € 306 million. We performed
well in the most important core markets, in many cases counteracting weak market
developments. In France, where the market for over-the-counter prescription-free
medicines declined by 3.2% in 2008, we increased sales by 4.2% to € 94 million in the
same period. France was thus once again our largest market. Our subsidiary Merck
Médication Familiale saw continued success there with the probiotic multivitamin
brand Bion®, achieving a 21% increase in sales to € 23 million. Bion® is now the fifth-
leading brand in the French OTC market. The strategic brand Femibion® for pregnant
women and nursing mothers also posted a strong 12% increase in sales. Higher sales of
strategic brands more than offset the decline in sales of cosmeceuticals from the local
dermatology line, which fell to € 26 million. The success of our approach of focusing
the business more strongly on strategic brands is apparent here. Merck Médication
Familiale now ranks second in both the dietary supplement and OTC markets of France.
Portfolio streamlined in the United Kingdom
Sales in the United Kingdom declined by 16% to € 64 million, primarily as a result of
the weakness of the British pound, which had a double-digit currency impact. As a con-
sequence, sales by Seven Seas, our UK subsidiary, decreased by 12%. In local currency,
however, sales increased by 2.6%. Seven Seas thus achieved its goal of stabilizing the
business despite a 4% decline in the vitamins and supplements market. Compensation
payments of around € 4 million from a supplier whose product impurities triggered a
recall in 2006 had a positive effect.
At the end of September, we also sold the Petcare business for a low seven-digit
figure, thus moving ahead with our plan to streamline the portfolio and divest non-
core assets. Sales by Lamberts Healthcare, our mail order business with high-quality
vitamins and minerals, stagnated in local currency terms in a weak market.
Kytta® gains market share in Germany
Sales in Germany increased by 16% to € 46 million in a market that declined by 2.5%.
The largest contribution to sales came from the plant-based ointment Kytta® for
muscle and joint pain. Following a successful advertising campaign, sales increased
by 77% to € 14 million in 2008. As a result, Kytta® considerably increased its market
share in Germany. Sales of the metafolin product Femibion® also developed favorably,
increasing 14% to € 15 million.
Acquisition in Belgium
We increased sales in Belgium by 18% to € 18 million. In particular, we achieved strong
sales gains with the strategic brands sold in Belgium under the Omnibionta® umbrella:
Sales of Femibion® and Bion®3 increased by 43% and 24% respectively. Sales of the
cold remedy Nasivin® grew by 6.7%. In December, we acquired the company Bio-Fyt
for € 30 million in order to strengthen our market position and to expand the product
portfolio. Bio-Fyt develops, markets and sells mobility, women’s health and everyday
health-protection products. The acquisition of Bio-Fyt is therefore in line with our
strategy of focusing on specific health themes and achieving leading positions within
these defined segments.
France is the largest market
for our Consumer Health Care
division.
The acquisition of the Belgian
company Bio-Fyt will expand
the portfolio .