QUARTERLY ACTIVITY IN 2020 (VARIATION AT CURRENT EXCHANGE RATES)
|in thousands of euros||1st quarter||2nd quarter||3rd quarter||4th quarter|
|Europe (excluding France)||37,581||31,779||+18.3%||16,904||23,551||-28.2%||25,625||36,288||-29.4%||35,262||41,363||-14.8%|
|in thousands of euros||1st,quarter||2nd,quarter||3rd,quarter||4th,quarter|
|Non-proprietary Homeopathic Medicines||61,722||69,067||-10.6%||48,334||64,147||-24.7%||50,573||60,972||-17.1%||69,244||67,688||+2.3%|
CUMULATIVE ACTIVITY AS OF THE END OF DECEMBER 2020
|in thousands of euros||2020||2019||Variation at current |
|Variation at constant |
|Europe (excluding France)||115,371||132,981||-13.2%||-11.2%|
|In thousands of euros||2020||2019||Variation at current |
|Variation at constant |
|Non-proprietary Homeopathic Medicines||229,873||261,874||-12.2%||-11.9%|
Change in revenue
In the fourth quarter of 2020, the group's revenues were down 8.9%. This decrease mainly relates to specialities for winter illnesses: due to the health crisis and restrictions imposed in most countries, the level of winter illnesses has significantly declined over the period.
Sales were up 5.5% in France, however, driven by:
- new product launches, including an innovative range of probiotics, Osmobiotic Flora®, and two homeopathic specialties, Bocéal® and Cocyntal®,
- the increase in sales of non-proprietary medicines in December.
In Russia and North America, the decrease in specialties sales was driven by sharp declines in the ruble (exchange rate impact: -12% on sales) and the dollar (exchange rate impact: -7% on sales) over the period.
In 2020, despite strong growth in North America, the group's revenues fell 7.8%, significantly impacted by a reduction in sales of non-proprietary medicines in France and specialties in Russia.
The considerable decline in business in France over the past two years (down 30%) has prompted a reorganization plan, as announced on March 11, 2020.
This reorganization in France will result in the elimination of 566 positions and the creation of 122.
Based on the information currently available, the cost of this reorganization plan is now estimated at around €64 million, €59 million of which will be subject to a provision in 2020 pursuant to applicable accounting standards. Meanwhile, provision write-backs for 2020 as a result of the reduction in employee commitments under this reorganization plan is now estimated at around €26 million.
The delisting of homeopathic medicines from French Social Security has been effective since January 1, 2021. Many private health insurers offer full or partial coverage of homeopathic medicines.
We remain committed to promoting recognition of the benefits and merits of these medecines for all patients and for public health. Thus, starting this week, BOIRON is making its voice heard with a general public communication to promote the specificity of homeopathy and its place in the daily life of the French.
Annual operating income for 2020 is expected to be lower than in 2019, significantly impacted by estimated costs relating to the reorganization.
Our next update: March 10, 2021, after the close of the stock market, publication of 2020 results.
Person responsible for financial information: Valérie Lorentz-Poinsot
Contact for financial information: Fabrice Rey
Investor relations: +33 (0) 220.127.116.11.43 - E-mail : [email protected]
ISIN Code: FR0000061129 (BOI) - Bloomberg: BOI FP - Reuters: BOIR.PA
The group's financial information is online at: www.boironfinance.com