Sars increased profits for Mölnlycke

Swedish health care giant Mölnlycke posted a profit of 134,6 million SEK for the first half of this year, compared to a loss of 26,2 million SEK during the same period last year. Mölnlycke Health Care was one of few companies to benefit from the Sars virus, when sales of face masks and protective clothing increased dramatically.
     – As one of the world’s major suppliers of face masks and protective clothing for the health care sector, perhaps we were one of very few companies that actually were “hedged”. The rest of our sales went down, but face masks and isolation gowns went up, says Måns Olsson, Marketing Manager Asia Pacific Region, at Mölnlycke Health Care in Singapore.
     The Asian sales of Mölnlycke Health Care increased with 36 percent during the first half of 2003, to 63 million SEK, largely due to the sales of protective masks and clothing. But the virus did not only prove an opportunity to Mölnlycke, it posed problems for the company as well.
     – Almost all projects we were undertaking were put on hold, as we had a corporate travel policy which explicitly stated not to go to affected areas like HK, China, Taiwan and Singapore, says Måns Olsson.
     – Not only were we restricted from travelling in the region, but people from outside also refrained from coming here altogether. This of course affected our business in a negative way, even though I think we are now getting back on track quite quickly.
     The net turnover of the company dropped from 2 226 million SEK to 2 199 million SEK. Fluctuations of currencies affected the sales negatively with about 106 million SEK, according to the company’s statement.
     Mölnlycke Health Care also announced that it will seek an IPO, initial public offering, to be listed at the stock exchange, as soon as the financial climate is favourable.

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