There were few surprises in SSL's results as the footware and condom-maker ploughs through the recession with sales and profits looking robust. But the real growth this year could come from Russia where SSL has exercised an option to acquire effective control over BLBV, a major distributor in eastern Europe.
Sales of Durex last year rose 7.3 per cent to £267m, with a majority of this made up of condom sales (£224m). The biggest growth in this segment came from the Durex-branded play range, which includes a clitoral stimulation gel and massage gel, with sales here up 17.7 per cent to £43.3m.
The other side of the business, Scholl footcare, put in a solid performance reporting an 11 per cent hike in sales to £143m, driven by new products such as Scholl Perfect Nail and higher marketing spend. The footware division contributed sales of £92.9m, up 5 per cent, reflecting strong growth both in Europe and Asia. SSL's locally-owned brands were broadly flat at £75.3m, which management said was a good result because of the relatively low level of investment allocated to them.
The control of BLBV gives SSL a major foothold in eastern Europe, and chief executive Garry Watts estimates that a full year's contribution from the business will add sales of £110m and operating profits of £16m. Mr Watts also set an ambitious target for EPS growth of at least 50 per cent by 2012, which broker UBS said would imply EPS of 42p in 2012, well above its current 36.5p a share estimate or 39.5p assuming a buy-out of BLBV.
For the current financial year, UBS predicts EPS of 30.1p.
SSL INTERNATIONAL (SSL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 478p | MARKET VALUE: | £1.01bn | |
| TOUCH: | 477-478p | 12-MONTH HIGH: | 528p | LOW: 380p |
| DIVIDEND YIELD: | 1.9% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 131p* | NET DEBT: | 6% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 426 | -1.2 | 1.0 | 6.2 |
| 2006 | 451 | 35.7 | 12.8 | 6.4 |
| 2007 | 480 | 46.9 | 17.1 | 6.8 |
| 2008 | 534 | 10.9 | -1.5 | 7.6 |
| 2009 | 642 | 76.5 | 28.0 | 9.0 |
| % change | +20 | +602 | - | +18 |
Ex-div: 5 Aug Payment: 3 Sep *Includes intangible assets of £140m, or 66p a share. | ||||
