Interview with the CEO

 "We’ve come through the crisis in our flagship businesses."

 

Jean-Paul Berthomé, Laboratoires Expanscience CEO

 

Has this year of economic crisis been difficult for Expanscience?
"It’s clearly been more difficult than 2008, but we have real cause for satisfaction. We ended the year with growth that, though weak (+1.2%) shows that within our two major businesses - Dermo-Cosmetics and Rheumatology - we were able to come through the crisis and gain in strength. Our international business is also increasing, which is equally satisfying."

 

On a business level, what were the company’s main successes during the year?
"By emphasising the importance given to natural ingredients and listening to consumers, the redevelopment of the Mustela range of products has borne fruit in 2009.

Our leading brand emerged from this all the stronger. Likewise, our Rheumatology business reported an outstanding last quarter in a favourable competitive environment. The performance of Piasclédine 300 in France and abroad was very respectable."

 

What else was achieved during the 2009 financial year?
"The company has rallied around an action plan known as “Expanscience 2012”. This wide-ranging project will streamline all of our internal procedures and control our costs. The challenges are significant: we are rethinking our overall organisation in order to maintain our competitiveness. Our employees have fully adopted this rationale for change, as underlined by the company agreement on increased working hours signed last December. More than 95% of the employees concerned by this measure signed the resulting pay agreement."

 

Among the results achieved, were there any that did not meet your expectations?
"At the end of 2009 several businesses failed to meet their stated goals, mostly for reasons beyond the control of the company. This was the case for Dermatology and Dental Care. The Cosmetics Active Ingredients business, which operates on a business-to-business model, suffered due to its customers’ decision to freeze new development. Nutraceuticals, a very difficult market, was disappointing considering the investments made. "

 

What is your assessment of the company’s financial performance for 2009?
"We have controlled our costs throughout the year. Our profitability was slightly impacted but remains entirely acceptable, especially if one considers the particularly large investments made during 2009 in both the future production building in Épernon and in Research and Development to redevelop the Mustela brand."

 

With regard to sustainable development, what progress was made in particular by the company?
"2009 saw concrete progress in several fields which resulted from intense internal cooperation. In particular this involved changes in our formulations to increasingly incorporate more natural ingredients, and the gradual elimination of ingredients where doubts have been expressed. We have started to implement a responsible procurement unit to ensure respect for biodiversity and fair trade. The Bilan Carbone® (carbon footprint assessment) carried out in 2009 allowed us to prioritise actions aimed at reducing CO2 emissions."