Akzo Nobel announces 6% top-line growth from present operations
21 Jul '05
7 min read
Excluding one-off items and divestments, operating income declined EUR 31 mln or 9 percent, to EUR 312 mln (2004: EUR 343 mln). This includes the consequence of the new collective labor agreement reached with the Dutch unions, which resulted in an extra charge of some EUR 25 mln in the quarter, affecting all units.
Organon – revenue growth; R&D expenditure significantly up Revenues: EUR 603 mln (2004: EUR 582 mln) autonomous growth 4 percent EBIT: increased 10 percent to EUR 87 mln (2004: EUR 79 mln) R&D expenses significantly up – investing in the pipeline Asenapine – R&D milestone achieved Step-up in R&D collaborations – agreements with Lexicon and Théramex - NuvaRing – sales steadily increasing Infertility – strong growth
Organon saw positive or recovering sales trends across most treatment areas with revenues showing 4 percent-growth in the second quarter. Compared to the corresponding quarter of 2004, volumes were up in most franchises, 3 percent in total, and prices increased 1 percent. Organon's operational performance decreased EUR 9 mln year on year, mainly as a result of the substantial planned increase in R&D expenses, which amounted to 16.6 percent of second quarter revenues. The EBIT margin was 14.4 percent (2004: 13.6 percent). Organon also incurred additional costs as a consequence of the new collective labor agreement in the Netherlands.
Frohn: “Organon showed encouraging top-line growth inthe quarter across the board with NuvaRing and Puregon delivering strong contributions. They are investing in the future with R&D expenditures ramping up significantly as they make further pipeline progress. The R&D milestone triggered by asenapine's progress in its clinical trials program is very encouraging.”
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