SSL's H1 profits rise by 10.1 percent thanks to new markets

London -- SSL International plc has reported that its overall sales for H1 were up by 10.1 percent to £262.7 million (€365.9 million) compared to the same period in 2006.

The company said in a 20 Nov statement that sales of its Durex brand rose by 9 percent to £102.5 million, due to strong growth in Italy, eastern Europe and China.

SSL's Scholl footcare range also rose by 10.8 percent to 64.7 million year-on-year, as a result of the success of new products, which allowed the company to widen its distribution into new markets, said SSL in the statement.

Sales in Scholl footwear reached £34 million, an increase of 18.9 percent.

Other consumer sales from retail stores, distribution of third party products, such as

Marigold house gloves, and unbranded condoms increased by 9 per cent to £20.6 million and contract manufacture sales rose by 8.6 per cent to £6.3 million, said the company.

SSL said that excluding a one-off-charge of £29.4 million, operating profit grew by 19 percent to £28.1 million.

According to SSL, strong cash flow has reduced the company's net debt from £88.7 million to £77.5 million.

”Our sales performance underlines the strength of our global brands and our marketing approach,” said Garry Watts, chief executive of the company, in the statement.

“Our work to turn around Scholl footwear is bearing fruit. It is encouraging that the business made good progress across all categories,” he added.

“Restructuring the European supply chain will bring benefits from 2009 onwards, supplementing profit generation from Durex, Scholl and our other brands. After a strong first half we're on target to achieve double digit operating profit growth for the full year,” said Watts.