Divestments hurt Moberg
This article was originally published in OTC Bulletin & The Rose Sheet
Executive Summary
Offloading a number of ‘non-core’ brands left turnover at Moberg Pharma down by 12% to SEK91.5 million (€8.9 million) in the first-quarter of 2018.
Offloading a number of ‘non-core’ brands left turnover at Moberg Pharma down by 12% to SEK91.5 million (€8.9 million) in the first-quarter of 2018.
The Swedish firm noted it had lost more than SEK17 million in sales compared with the prior-year period due to the divestment of brands such as Fiber Choice, PediaCare and JointFlex.
While the divestments had hit sales, profits had been boosted, Moberg noted, as the firm now had a “more streamlined portfolio with brands that each generate good profitability”. The firm reported an 81% jump in operating profit to SEK12.5 million in the first quarter.
Excluding the impact of divestments, Moberg noted that its first-quarter sales had actually improved by 5%, driven by the performance of its flagship Kerasal Nail brand.
Globally, Kerasal Nail’s turnover had advanced by 9% to SEK35.7 million, Moberg said, thanks primarily to “strong consumption gains” in the US.
Elsewhere, the brand’s sales had “developed positively” in Europe and Rest of World, the firm explained. Stronger claims for Kerasal Nail had recently been rolled out across Europe, Moberg added, and plans were in place to use these claims in other markets, pending regulatory approval.
Turning to Moberg’s other leading brands, the firm reported single-digit gains for its Dermoplast and New Skin lines.
Sales of Dermoplast had moved forward by 2% to SEK21.7 million in the three months, the firm reported, thanks to distribution gains in hospitals and retail outlets. Turnover from New Skin improved by 7% to SEK20.8 million, which Moberg attributed to the “positive halo effect” from its ‘Mr Cut’ advertising campaign in the US.
On a regional basis, sales in North and South America advanced by 5% to SEK71.3 million, reflecting the growth of Moberg’s leading brands.
Turnover in Europe moved forward by 4% to SEK8.2 million, while sales in Rest of World jumped by 13% to SEK5.9 million.
Following the close of the period, Moberg completed the previously-announced sale of its Balmex nappy-rash line to Randob Labs (OTC bulletin, 23 March 2018, page 5).