Install

Get the latest updates as we post them — right on your browser

Today's paper. Last Updated: 02/10/2012

Condom Maker Gets Boost After Buying Russian Firm

Reuters

LONDON — Condom maker SSL International got a boost in half-year results from its newly acquired Russian business BLBV and said the country is now set to become its biggest single market with the introduction of its own Durex brand of contraceptive sheaths.

SSL, whose products also include Scholl foot-care treatments, said the performance of its new Russian condom distributor had beaten expectations and it now sees rapid growth as it launches its own brands in the world’s biggest country.

“As Russia becomes more western facing, we are ready to exploit this and make our own condoms available through our new distributor,” CEO Garry Watts said in an interview Tuesday.

He said Russia would become its biggest business with a 60 percent share of the country’s condom market, and expects to see growth in sales of more than 10 percent in the coming years from the distributor, which employs 3,500 people and operates over 11 time zones.

SSL increased its stake in BLBV to 50.6 percent from 15.5 percent on June 1, giving the British group four months of increased contributions for its half-year period.

“We believe today’s results support the share price progression, and we expect to upgrade our earnings forecasts by around 5 percent,” analyst Sally Taylor said at Cazenove.

She added that a key upside was the rise in gross margins by 1.8 percentage points year on year as the company moves to selling more higher margin products and benefits from low cost manufacturing.

The group’s operating profit rose 46 percent in the six months to Sept. 30 to £57.1 million ($94.9 million), ahead of the average market forecast of £50.5 million according to Thomson Reuters I/B/E/S Estimates and with the Russian business contributing £10.5 million.


Also in Business

Putin Has Plethora of Business Ideas

President of state-controlled bank VTB Andrei Kostin on Thursday called for business to support the government ahead of next month's presidential election, hinting that entrepreneurs' participation in opposition protests could be hazardous to their health.

VTB Buyback Details Finalized

State-controlled bank VTB will buy back its stock from retail investors at the 2007 issue price of 13.6 kopeks per share over the next two months in a move aimed at preserving the reputation of the country's second-largest lender.

Agricultural Levies to Be Harmonized

After joining the World Trade Organization, Russia will have to start taxing some agricultural products that are now exempt.

Aeroflot Countering Bribery Allegations

Aeroflot said it will file a countersuit for slander and defamation against a U.S. tour company that has accused the airline of bribery and extortion.

Ex-Cop Runs Bogus Drug Plant at Home

Investigators have uncovered a counterfeit drug factory, along with 20 million rubles ($670,000) worth of bogus pills, at the dacha of a former first deputy head of the Moscow metro police.

Waiting for WTO, Food Chains Look To Regions

Average food import tariffs in Russia will drop from the current 10 percent to 7.8 percent as soon as Russia's entry into the World Trade Organization is complete, but challenges remain in taking advantage of the new status, industry experts agreed during the Food Business Summit in Moscow on Thursday.




Discussion
The Moscow Times welcomes your comments and invites you to discuss topics with other readers. Your comment will be posted automatically to enable a live discussion. If you aren't familiar with our comments policy, you can read it here.

If you're a registered user, you can start typing your comment below. If not, take a moment to sign up. and then return to the article.

If your comment doesn't appear, contact us by using our web form.

Comments

Comments via Facebook

print


Comments

This article has no comments.

Be the first to leave a comment





Most Read