Zeneca Praises 1st Half Underlying Growth

A year since the demerger of the biosciences business from ICI, Zeneca has experienced a period of many changes, not least in the pharmaceuticals business (more on this next week). David Barnes, chief executive, said that against a very demanding background the company had continued to deliver growth in both sales and trading profit.

Group sales for the first six months of the year were L2.38 billion ($3.67 billion), up 3%, with underlying growth of 7% being little affected by price and exchange rate influences. Pretax profits declined 3% to L351 million. John Mayo, financial director, said that this was a result of the impact of a L100 million exceptional charge taken in the first half of 1994 for downsizing and cost reduction. In the like, year-earlier period an L18 million exceptional profit was recorded. Before exceptional items, profits were L451 million, ahead 31%. Earnings per share were down 22% to 25.4 pence, but before exceptional items it increased 9% to 32.9 pence. Trading profit advanced 16% to L473 million.

Sales By Business (L mill) Business 1st Half % Change Underlying Pharmaceutical 976.0 +6.0 +7.0 Agrochemical 893.0 +8.0 +8.0 Specialties 521.0 - +5.0 Misc (6.0) -113.0 - Total 2,384.0 +3% +7.0