Sanofi Reports First Half Profits From Health Care

At French drug and beauty products maker Sanofi, net earnings for the first half of 1996 reached 616 million French francs ($122 million), a rise of 11%, on turnover 5% higher at 11.35 billion francs ($2.25 billion). The growth was attributed to the good performance of the human health care business. At constant exchange rates and comparable group structure, sales increased 3.5%.

Sanofi says the pharmaceutical business benefited from the growth of the European and Asian markets. Sales of major established international products registered a significant 10% rise in turnover. Including R&D expenditure (1.63 billion francs for the six months), which accounts for 17% of sales, operating profit for the human health care segment progressed from 1.63 billion in the first half of 1995 to 1.85 billion francs for first half-1996.

The company's perfumes and beauty products operations, however, were marked "by a challenging economic context and a competitive operating environment," according to Sanofi. The segment continued to implement its strategy of more selective distribution. Sales for the first half declined by 3% and operating profit for the segment, which was in a break-even situation in first-half 1995, was negative at 74 million francs.