COMPANY MEETING

BEECHAMS PILLS

NEW RECORD IN PROFITS

THE eleventh ordinary general meeting of Beechams Pills, Limited, was held on June 8th at the Hotel Victoria, London. Mr. Philip E. Hill (chairman of the company), presiding, said: Ladies and Gentlemen,—The profit of £723,663 creates a new record in the company's history.

The year under review has been a most eventful one, not only from the company's point of view in the acquisition of two very important new businesses—Macleans and Eno's—but also from the extremely difficult trading conditions which have existed (and to some extent still exist), occasioned by world affairs.

Although we are all tired of the continual references to " un- settled political conditions," unfortunately any predictions which we may make with regard to the future must be subject to a nearer return to normality.

Dealing first with export trade, which I consider of the highest importance both from the point of view of your company but even more so from a national standpoint, I feel that this present year should exceed anything hitherto achieved.

When your directors purchased the Eno business one of their principal motives in doing so was to take advantage of the wide- spread export organisation belonging to that company and to obtain the benefit of its specialised export experience covering a long period of time. We have already made arrangements for our company and its subsidiary and associated companies to take advantage of Eno's unique position. We are utilising their factories and old-established selling organisations throughout the world to manufacture and sell our lines, and when this policy has been fully developed it should result in big economies in manufacturing and selling costs. Eno's export director has just completed a comprehensive tour of Egypt, India, Ceylon, Malaya, New Zealand and Australia, while our own export manager has just returned from an extensive tour of the West Indies, U.SA, Canada and the South and Central American markets.

Sales to date show steady progress all round, and we are justified in anticipating important increases in our overseas profits.

Turning to our home trade, last year we received only a portion of the annual profits from Macleans and Eno's, and this year we shall have the benefit of a full year's trading. Since the acquisition of the Maclean and Eno businesses we have been able to effect very considerable economies in manufacture, administration and selling, a considerable portion of which economies will be realised in this year's accounts. We should be able to look forward to sales reaching a higher level, and we anticipate successful results from Livaclean and Lucozade—two new lines marketed by Macleans.

An event of outstanding importance during the past year— probably the most important event which has ever happened in the history of the proprietary medicine and proprietary article business —is the proposed repeal of medicine duties. It is, of course, too early for one to make any accurate forecast as to the extent of the benefit it will prove to our business; but one thing is already abundantly dear, and that is, that it opens up a vista of great possibilities. When the repeal comes into force, as presumably it will in September next, a much wider field of distribution will be available. FYactly how we shall deal with that is a matter which requires the most careful consideration.

We have already been approached by some of the largest potential distributors in the country, who, in consequence of the conditions which previously existed, have in the past been prevented from dealing in our type of merchandise. There is also no doubt that as we get nearer to September, we shall be approached by many others. Our first consideration will be to deal fairly and equitably with the whole of our distributors—old and new, large and small.

We hope that the repeal of the medicine duties will enable us to provide the public with our products in a smaller and cheaper form than has hitherto been possible, and our first aim, as far as the public is concerned, must be to give increased service and value. The success of the proprietary medicine and article business rests entirely upon this foundation.

This company, through the long period of its existence, has always had the most friendly relationships with the chemists and druggists of the country, and no effort will be lacking on our part to maintain the cordial relations which have hitherto existed.

We understand that representations are being made to the Government with regard to the reasonable control of the formula' and advertising of proprietary medicines. Your directors would give their whole-hearted support to such proposals, as any measure that is introduced to safeguard the public, as far as proprietary medicines are concerned, must react favourably on this company.

Your directors are pursuing their policy of sponsoring new lines from the development fund, and they ask you again to bring this fund up to £Ioo,000. The new laboratory at the Royal Northern Hospital, London, has once again rendered yeoman service to the group, and I should like to place on record your directors' appre- ciation of the advice and help given to them by Mr. Herbert Skinner and his staff in connection therewith.

In conclusion, I feel I am not unduly optimistic in looking forward to this year's results with added confidence. Personally, I shall be very disappointed if this time next year I am not able to refer to the fact that the record of profits established this year has been well broken. I have always had the greatest belief in the future of this business, and I feel that its prospects to-day are greater than at any time since its formation.

The report and accounts were unanimously adopted.