14/04/2005
Thursday
SSL's Trading Update For The Year Ended 31 March 2005
SSL International plc ("SSL"), the consumer healthcare brands company is issuing
a trading update for the year to 31 March 2005. The preliminary results for the
year then ended will be announced on 24 May 2005.
Reported sales for the continuing consumer business are expected to exceed £420
million, approximately 4% ahead of the previous year after adjusting for adverse
foreign currency movements of £8 million and consolidation, for the first time,
of our Indian operations.
SSL's branded consumer business is expected to generate sales of approximately
£370 million showing underlying growth of approximately 2%. Durex and Scholl
footcare, increasing by around 4% and 5% respectively, continue to be the main
drivers of the overall sales growth with successful new product introductions
and effective advertising campaigns, for example the Pleasuremax condom and
Scholl Party Feet. Growth in these categories is partially offset by a 5%
reduction in sales of Scholl footwear as the focus shifted to growing brand
contribution by eliminating less profitable styles and investing in new ranges
in mainstream retail channels in selected markets.
Sales of distributor products and unbranded condoms are expected to increase to
around £41 million, and in addition, new sales of wound management and Hibi
products to the purchasers of these businesses under contract manufacturing
arrangements are expected to be approximately £9 million.
Reported sales for the year will, in addition, also include £32.5 million
relating to revenue from the now disposed medical business, as reported in the
first half of the year.
SSL expects these increased sales from the consumer business to generate
continuing strong gross margins. This, taken together with overhead cost
reductions, is expected to lead to underlying operating profits well ahead of
last year's £26.1 million and consistent with our stated target of doubling
operating profits over the three years to March 2007.
For further information, please contact:
SSL International plc 020 7367 5773
Garry Watts, Chief Executive
Mark Moran, Group Finance Director
Jan Young, Head of Investor Relations
The Maitland Consultancy 020 7379 5151
William Clutterbuck
Brian Hudspith