West Pharmaceutical sales grow 7 percent

qiangzi

Friday, May 4, 2012
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Lionville, PA - West Pharmaceutical Services announced net sales grew 7.1 percent in the first quarter of 2012 compared to the first quarter of 2011 (9.1 percent excluding the unfavorable effects of currency). Pharmaceutical Packaging Systems sales grew 9.2 percent (11.6 percent excluding currency effects), mainly due to the impact of an improving sales mix on modest volume increases and pricing actions. Pharmaceutical Delivery Systems sales grew slightly, and were 1.3 percent higher than the prior-year period when adverse currency effects are excluded. Consolidated gross profit improved 14.8 percent over the prior-year period, to $101.1 million, yielding a 2.1 percentage point increase in gross profit margin to 31.9 percent. The improvement was primarily attributable to Pharmaceutical Packaging Systems, which benefited from accelerating revenue growth that included a more profitable sales mix, better pricing and modest unit growth. Pharmaceutical Delivery Systems also benefited from an improving sales mix and contributed to the improved gross margin. R&D spending increased by $1.4 million, to 2.6 percent of sales in the current quarter compared to 2.3 percent in the prior-year period, primarily for the further development of the company’s proprietary delivery systems. SG&A costs rose by $0.7 million, but decreased to 16.2 percent of sales from 17.1 percent in the 2011 period. As a result, adjusted operating profit improved 37.8 percent, to $42.3 million, and adjusted diluted EPS increased 38.3 percent, to $0.83.