2014 1H Results note
Following the sales decline at the beginning of the year, Natraceutical stabilizes its turnover in the second quarter and protects its contribution margin.
- Natraceutical ended the first six months of the year with a turnover of 17.74 M€ compared to 18.51 M€ in June 2013, primarily driven by a 6.0% decline in sales in the first quarter after the change of purchase dynamics in the pharmaceutical channel. In the second quarter, sales of the company stood at 7.64 M€, in line with the 7.77 M€ in the second quarter of 2013.
- The company managed this decrease in sales did not affect the gross margin of the first half of the year, which stood at 76%. EBITDA stood at the end of June at 1.94 M€ against 2.52 M€ in the same period last year following the sales variation.
- Due to the merger with Laboratorio Reig Jofre, Natraceutical audited its accounts to the end of June, which explains the inclusion of taxes in the half year profit and loss account. The mentioned sales drop and tax impact of 0.62 M€ explain the difference in the net profit of the semester, which stood at 1.22 M€ compared to 2.38 M€ in June 2013. This tax item does not involve cash outflow because of the existence of tax credits and it is estimated to be lower at year end.
- The merger between Natraceutical and Laboratorio Reig Jofre, reported on 26 June, is progressing on schedule and is expected to be closed before year end. After the merger, the new company will be the fifth laboratory in the Spanish stock market.
1.- Evolution of the turnover
As already reported in the first quarter results, the evolution of Natraceutical in the first months of the year was clearly marked by a change in purchases in the pharmacy channel, especially in France, Forté Pharma’s main market.
Funding constraints in Europe coupled with a lack of visibility on the evolution of consumption in the medium term led the pharmacy channel to change their purchase habits in recent quarters. While traditionally pre-sales campaigns –with preferential conditions- concentrated a higher volume of purchases, the first quarter of the year showed the will of this channel to encompass purchases to the evolution of end-consumer sales throughout the semester.
This represented a reduction of 6.0% in Natraceutical’s turnover between the months of January to March, while in the second quarter sales stood at similar levels than last year, after reaching 7.64 million euros between April and June, compared to 7.77 million euros in the same period of 2013, while still with signs of prudence by the pharmacy channel in France.
Evolution of Natraceutical’s operating result, 2013-2014
(in million euros)
