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UPDATE 1-Omega sees demand pick-up, repeats sees flat 2009

Published 08/27/2009, 12:41 PM
Updated 08/27/2009, 12:45 PM
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* H1 EBITDA down 10 percent

* Repeats forecast of flat 2009 turnover

* Says demand picking up for products in most countries (Adds details, background)

BRUSSELS, Aug 27 (Reuters ) - Belgian health products distributor Omega Pharma reported a 10 percent fall in first-half core profit on Thursday and repeated its forecast of flat turnover for the full year.

The company, which sells non-prescription products to pharmacists, said recurring EBITDA (earnings before interest, tax, depreciation and amortisation) was 67.4 million euros ($95.95 million).

The average of a Reuters poll of five analysts was for a figure of 62 million euros.

Omega said the improvement, despite lower sales, was the result of 20 million euros of cost savings.

Last month, the Belgian group reported a worse-than-expected three percent drop in first-half turnover and said it no longer saw full-year growth, prompting a near 5 percent slide of its shares.

It also then revised its full-year forecast to flat turnover from a previous expectation of a slight improvement.

"The most recent reports from our 35 national organizations indicate that in most countries the demand for the Omega Pharma products is picking up again lightly. This confirms our prognosis for the full year," CEO Marc Coucke said in a statement.

Omega sell prescription-free medicines and healthcare products, over-the-counter (OTC) items such as wart treatments, mosquito repellant, vitamins, pregnancy tests and sun tan lotions.

It competes with the OTC arms of pharma giants such as Johnson & Johnson and Bayer and of consumer product groups from Procter & Gamble to Reckitt Benckiser.

Omega, the only sizeable stand-alone OTC company, ranks itself 13th in that market with sales in 2008 of 811 million euros. (Reporting by Philip Blenkinsop; Editing by Rupert Winchester)

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