Omega Pharma has well survived the crisis year 2009. Thanks to an efficient cost policy, the specialist was able to catch the decreasing profit margins in medicines, which not request a prescription, and in care products. That’s why the board of directors proposes a dividend which will be 33 percent higher.
In Omega Pharma the profit increased with 41 percent. This is much more than the analysts had predicted. But these analysts hadn’t calculated the unique income of the sale in the interest of Arseus.
The strong increased profit is due for a huge part to the 15 million euros which Omega Pharma won by the sale in the interest of Arseus. The fear that the decreasing profits would totally destroy the single income, is a false statement.
That fear was risen after the company has already given the update of the sales in January. This update was higher than expected, but the figures showed that the product mix in the 4th quarter had moved in the direction of the generic products which cause less profit. But this trend has come to an end. Another reason for the moved production mix was the strategy used in 2009. In a crisis year it’s necessary to support your products in an adapted way.
An efficient cost policy has rescued the moved production mix. Omega Pharma had the plan to decrease the costs with 30 million euro. That plan is rightly succeed. Also lower financial expenses have contributed to the increased profit. The financial results have increased from -40 million euro to -25 million euro, due to lower interests rates and reduced debts.
I think Marc Coucke, the CEO of Omega Pharma, has done a good job. Omega Pharma is a company with huge sales in the growth countries . Besides this year Omega Pharma has started a joint venture in India. He has well fought against the crisis.
On the other hand, a lot of people think Omega pharma is a grow company. The rate has now a value that is the same as the rate has 10 years ago. So in my opinion, Omega Pharma isn’t any longer a grow company.
http://www.tijd.be/nieuws/ondernemingen_chemie_farma/Omega_Pharma_verhoogt_dividend_met_een_derde.8890382-429.art
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I agree with your opinion when you say that this company isn't a growth company. On the other hand, in my opinion, you really haven't under built what you claim to be true. That's why I will do it for you if I may.
BeantwoordenVerwijderenThe thing is that it doesn't even matter whether the company is a growth company or not. It has no importance whatsoever. Omega Pharma is a distributor, it has a low percentage of added value. It depends a lot on its 'producers'. That is the Achilles' heel of the company: when a producer decides to distribute its own products, demands higher prices or chooses another distributor, Omega Pharma loses market share and turnover. On the side of sales, their control is also seriously decreasing these days.
Finally, the company hasn't made improvements on its markets, the profit didn't went up. All they did was implementing saving measures.