UK based consumer healthcare business SSL International plc (LSE: SSL) updated investors on its six months trading performance ahead of November’s release of the interim results. In the first half sales have increased to £387m, up to 20% compared to the corresponding period in 2008.
The improved sales performance reflects the integration of a number of SSL’s recent acquisitions. June’s consoldiation of Beleggingsmaatschappij Lemore BV (BLBV) into SSL’s operations added £43m to overall group sales. According to SSL, the Former Soviet Union (FSU) operating condom brand continues to perform well.
BLBV’s strong performance adds to the Durex subsidiary’s international operations, as sales of Durex branded condoms grew well in China, Poland and Germany; and there was a strong performance in the Durex Play range.
In SSL’s other operations, Scholl footcare saw good sales growth in Germany, France and Japan, however pharmacy destocking in Italy tempered gains. Sales of Scholl footwear have been driven by solid growth in France and Thailand. Disruption in Italy also impacted on the group’s overall growth in its locally owned brands.
SSL's core business is providing good like-for-like sales growth despite the challenging economic conditions in many of its markets, it said.
SSL Chief Executive, Garry Watts commented: "Our acquisition strategy is working and is providing an even broader international base; and an ongoing focus on overhead cost control is enabling us both to invest in the business and expand margins. The balance sheet remains strong and we continue to be confident of achieving our 50% EPS growth target over the three years to March 2012."
Earlier this month SSL completed its latest acquisition, the Ukrainian based Gainbridge Holdings Company, primarily engaged in the packaging and distributing of condoms and medical products. SSL completed a deal to purchase the company for a total consideration of €20.6 million (£18.8m), which has been satisfied from SSL's cash and existing facilities. The transaction is expected to be earnings neutral in the current year and earnings enhancing in future periods.