Merck 2014 Annual Report Download - page 51

46 GROUP MANAGEMENT REPORT → FUNDAMENTAL INFORMATION ABOUT THE GROUP → The Group
CONSUMER HEALTH
Consumer Health manufactures and markets over-the-counter
pharmaceuticals. Consumer Health focuses on a number of well-
known strategic brands such as Neurobion®, Bion®, Seven Seas®,
Nasivin®, Femibion®, and Dolo-Neurobion®, as well as Floratil®,
Sangobion®, Vigantoletten®, Apaisyl®, and Kytta®. In 2014,
Consumer Health contributed 7 % to Group sales and 5 % to
EBITDA pre one-time items (excluding Corporate and Other).
Consumer Health has a high market penetration in Europe, Latin
America and Southeast Asia, and is generating particularly strong
growth in emerging markets, especially in India, Indonesia and
Brazil, which have firmly established themselves among the top-
ten markets in terms of sales. The key new product launch of Seven
Seas® Perfect7® was chosen by the customers of the British health
and beauty retailer Boots as the winner of the “2014 Favourite
Newcomer” award.
Global megatrends favor the future growth of Consumer Health.
People are becoming more health-conscious and concerned with
their own physical well-being. Preventive health care and as little
invasive medication as possible are becoming increasingly im-
portant – in both established and emerging markets, characterized
by a growing middle class with specific needs.
On January1, 2014, two product groups from the Biopharma-
ceuticals division were transferred to Consumer Health. These are
Neurobion®, a leading global brand in the vitamin B segment, and
Floratil®, a leading brand in the probiotic antidiarrheal segment in
Brazil. The transfer of the two strong brands makes better use of
the potential of the consumer-oriented business model of Con-
sumer Health. Furthermore, Consumer Health has considerably
strengthened its presence in the Emerging Markets region. This is
a step in the journey towards having at least three leading brands
and achieving a market share of at least 3 % in each of its key
markets. The share of Consumer Health sales accounted for by
Emerging Markets increased from
28 % (unadjusted year-earlier
figure) to 50 % in 2014 as a result of the product transfer. The effects
of the product group transfers on Consumer
Health’s figures for
2013 are shown in the following table.
CONSUMER HEALTH →
ADJUSTED
2013
€ million reported adjustment adjusted
Sales 479.6 265.4 745.0
Total revenues 476.9 265.2 742.1
Operating result (EBIT) 62.2 99.9 162.1
Margin (% of sales) 13.0 21.8
EBITDA 71.1 99.9 171.0
Margin (% of sales) 14.9 23.0
EBITDA pre one-time items 72.5 99.9 172.4
Margin (% of sales) 15.2 23.2
Business free cash flow 83.9 88.6 172.5
Effective May15, 2014, Uta Kemmerich-Keil took over the leader-
ship of Consumer Health, thus succeeding Udit Batra as President
and Chief Executive Officer. Kemmerich-Keil was previously CEO
of Allergopharma, the global Allergy business unit.