Huhtamaki Pharma Sales See Downturn

Finnish confectionery, packaging and pharmaceuticals group Huhtamaki reported an overall consolidated sales increase of 4% to 8.3 billion markka ($1.78 billion) for 1994. The company points out that the appreciation of the markka reduced the turnover figure by over 600 million markka, since nearly 90% of the company's business takes place outside Finland.

While turnover in the packaging division rose 23% to 2.44 billion and in confectionery products fell slightly to 4.97 billion markka, sales of the pharmaceuticals operation, Leiras, declined 7% to 868 million markka ($185.7 million), after a surge in sales in 1993, so reverting to the division's normal pattern. Profit after financial items also declined, by 13%, to 442 million markka, and earnings per share dropped 11% to 12.16 markka per share.

The company notes that for Leiras, exports of many key products failed to offset the sharp decline of US deliveries of its Norplant contraceptive implants, which have suffered from negative publicity, mainly associated with difficult removal of the implants in some cases. Nevertheless, Leiras' profits remained satisfactory, especially in view of accelerated spending on R&D of 162 million markka, or 18.7% of net sales. Leiras sales outside Finland declined 11% to 462 million markka, and accounted for 53% of the total. Turnover in Scandinavia expanded by around 40%, with both prescription and over-the-counter products defending their positions on the domestic market.