Merck 2014 Annual Report Download - page 111

106 GROUP MANAGEMENT REPORT → REPORT ON ECONOMIC POSITION → Consumer Health
The results of operations developed as follows:
CONSUMER HEALTH →
RESULTS OF OPERATIONS
2014 20131 Change
€ million in % € million in % € million in %
Sales 766.1 100.0 742.1 100.0 24.0 3.2
Royalty, license and commission income 2.7 0.4 2.9 0.4 – 0.2 – 5.0
Total revenues 768.8 100.4 745.0 100.4 23.8 3.2
Cost of sales2– 250.7 – 32.7 – 243.0 – 32.7 – 7.7 3.2
(of which: amortization of intangible assets) 2 (–) (–) (–) (–)
Gross profit2518.1 67.6 502.0 67.6 16.1 3.2
Marketing and selling expenses2– 303.1 – 39.6 – 287.2 – 38.7 –15.9 5.6
(of which: amortization of intangible assets) 2 (– 2.7) (– 2.4) (– 0.3) (15.8)
Royalty, license and commission expenses – 2.6 – 0.3 – 2.4 – 0.3 – 0.2 6.2
Administration expenses – 27.2 – 3.6 – 26.9 – 3.6 – 0.3 0.9
Research and development costs2– 22.3 – 2.9 – 21.8 – 2.9 – 0.5 2.1
(of which: amortization of intangible assets) 2 (–) (–) (–) (–)
Other operating expenses and income –13.0 – 1.7 –1.5 – 0.2 –11.5 –
Operating result (EBIT) 149.9 19.6 162.1 21.8 – 12.2 – 7.5
Depreciation / Amortization / Reversals of impairments 10.5 1.4 8.9 1.2 1.6 17.6
(of which: one-time items) (–) (–) (–) (–)
EBITDA 160.4 20.9 171.0 23.0 – 10.6 – 6.2
Restructuring costs 9.0 1.2 7.8 –
Integration costs / IT costs – – – –
Gains / losses on the divestment of businesses – – – –
Acquisition-related one-time items – – – –
Other one-time items – 0.2 – 0.2 –
EBITDA pre one-time items 169.4 22.1 172.4 23.2 – 3.0 – 1.7
1 Previous year’s figures have been adjusted, see “The Group" in the Group management report.
2 The disclosure of amortization of intangible assets (excluding software) has been changed. See “Accounting and measurement principles“ in the Notes to the Group accounts.
In 2014, the division’s gross profit rose by 3.2 % to €518 million.
Consequently, gross margin was unchanged at 67.6 %. Higher
marketing and selling expenses were largely related to the estab-
lishment of a consumer-oriented global marketing concept of the
division to strengthen strategic brands. The decline in other operat-
ing expenses and income (net) to €–13 million (2013: €-2 million)
was primarily attributable to the one-time expenses for restructur-
ing measures included under this item. Adjusted for amortization
and one-time items, the Consumer Health division reported
EBITDA
pre one-time items of €169 million (2013: €172 million), thus
nearly reaching the earnings level of 2013 despite higher market-
ing and selling expenses. The EBITDA margin pre one-time items
was 22.1 % in 2014 (2013: 23.2 %).