Merck 2010 Annual Report Download - page 69

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The operating result of the Consumer Health Care division declined by 71% to EUR 14 million.
ROS was 2.9% compared with 10.3% in 2009. Underlying free cash flow was EUR 45 million,
which was 7% lower than in 2009. In addition, higher impairment losses in Mexico lowered the
operating result. We also incurred losses due to a fire in a warehouse in the United Kingdom.
At EUR 25 million, research and development spending in the Consumer Health Care division
was 28% higher than in 2009.
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With one exception, the global sales of our five strategic brands developed positively, posting
double-digit increases. The Bion ® range generated global sales of EUR 54 million, an increase
of 11%, of which France contributed the vast majority, or EUR 32 million. Femibion ® grew by
24%, generating sales of EUR 41 million. Its strongest markets are Germany and Poland. France
also recently reported strong increases. Seven Seas ® recorded a slight sales decline of 1.4% in
its core UK market. However, thanks to the positive developments in other countries, sales grew
by a total of 14% to EUR 44 million. Nasivin ® sales grew by 23% to EUR 52 million, driven
primarily by good performance in Poland, Russia, South Africa and India. The Kytta ® brand,
which is primarily marketed in Germany, registered a 21% decline in sales to EUR 15 million.
The development of Kytta in Germany was attributable to overproportionate increases in
advertising spending by our competitors compared to 2009.
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EUR million / % of divisional sales
1 Bion ® 54 11%
2 Nasivin ® 52 11%
3 Seven Seas ® 44 9%
4 Femibion ® 41 9%
5 Cebion ® 27 6%
6 Other products 252 54%
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By region, our sales breakdown as follows: 71% in Europe, 17% in Latin America and 12% in
Asia, Africa, Australasia. Europe thus remains our largest market with sales of EUR 331 million,
an increase of 3.8% over 2009.
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France remains our top-selling country, posting sales of EUR 101 million, or 1.8% more than
in 2009. The Bion ® range again performed very well, securing its position as the second-leading
brand in the French OTC market and as number one for nutritional supplements. Femibion ®
Maman Active for young mothers was launched in France in 2010.
Femibion ® shows strong growth
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Europe – our number-one region
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