SSL excites the City as profits grow
ASHARES in SSL jumped to record highs yesterday after the condom-to-foot-deodorant maker said first half profits were up 59 per cent.
SSL said that pre-tax profits rose to £51.9m from £32.5m in the six months ending 30 September, driven by a strong performance at its Durex Play business that makes lubricants and vibrators, and its acquisition of a Russian condom maker.
Total group sales jumped by 21.2 per cent to £390.9m, while its Durex business that contributes just over 40 per cent of group turnover, rose by 5.3 per cent to £143.5m.
BBLV, the Russian rival that SSL acquired in the Spring, reported sales of £45m and operating profit of £10.5m in the four months since it was taken over, while the group’s Durex Play division saw sales jump to £25.2m.
Shares in SSL became the FTSE 100’s top riser at one point and closed the day up by 7.14 per cent at 730p.
The group’s Scholl footcare division said sales increased by 4.7 per cent to £48.7m.
Scholl sales accounted for £95.6m of total revenues, an increase of 1.9 per cent on last year, with strong sales in Germany,
France, Japan and Scandinavia being offset by destocking in pharmacies in Italy.
Chief executive David Watts said: “Despite tough trading conditions in some of our core markets, our turnover has moved ahead strongly. Both core brands, Durex and Scholl, have performed well.”
Analysts broadly welcomed the strong results from SSL.