SSL, owner of Durex and Scholl, beats the economic blues with impressive results.
Bucking the economic malaise that has badly affected sales of consumer products of late, SSL International (LSE: SSL) on Tuesday turned in an impressive set of interim results, for the six months ending September 30.
SSL, makers of Scholl footwear and Durex condoms, looks to have benefited from people, erm, staying at home more, with sales growing by 21% on the first half last year. That was accompanied by a 60% increase in profit before tax (up to £52m), and a nice growth in earnings per share of 31%, to 15.5p. And that's all nicely rounded off with a rise in the interim dividend, to 3.1p from 2.6p.
Led by condoms
And it's not all due to those nice comfy shoes either, as this year's growth has been led by the Durex division, with strong growth having been recorded in China, Poland, Hungary and Germany -- so maybe people really are having more fun now that Communism is a thing of the past.
And while sales of condoms themselves rose, it was the Durex Play range of lubricants and sex toys that drove the division forwards, showing a 10% increase in sales, with particularly good growth in Spain and the Middle East.
Business in Russia added nicely to the bottom line too, after SSL increased its stake in Russian condom manufacturer, BLBV, to just over 50% in June.
Steady growth
Formed in 1999 from the merger of Seton Scholl and London International Group (itself previously known as The London Rubber Company), SSL has recorded steady increases in earnings that would warm the cockles of any growth investor's heart, and 2009 is the fourth year in a row that the company has increased its earnings and dividends, with healthy further growth forecast for the next two years.
The share price rose by nearly 6% on the day of the results, to 710p, putting them on a forward P/E of over 20, which some may think is a little high. But it's a quality company, with a good track record of growing profits, negligible debts, and apparently very good international prospects.
The only thing I don't really like about SSL is its name. Three letter abbreviations really are so dull -- "The London Rubber Company" had so much more class.
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