Sales increased by 10% in the fourth quarter of 1997 at constant exchange rates and comparable group structure, and by 9% for the full year 1997 (6% at constant exchange rates and comparable group structure).

For the full year, the Pharmaceuticals business developed favorably, particularly during the second half of the year.
In terms of trading areas, consolidated sales in Central and Eastern Europe, Africa, Latin America and Asia posted growth of over 20 % (only 2.6% of Pharmaceuticals sales are generated in South-East Asia, excluding Japan).
In Western Europe, growth was more modest at 3%, due to the effect of the withdrawal of Trancopal® (clormezanone), a muscle relaxant, at the end of 1996. In the US, sales increased by 14%.

Consolidated sales for the ten major products rose by 14 %:

In terms of global market presence (Sanofi sales and sales by licencees), sales of Ticlid® rose to FRF 5.7 billion (+19 %), Depakine® FRF 4.2 billion (+42 %), Cordarone® FRF 2.4 billion (+45 %), Fraxiparine® FRF 1.4 billion (+4 %).
Marketing of the antihypertensive agent Aprovel® (irbesartan) by Sanofi and Bristol-Myers Squibb began in September in the UK and Germany. The product was subsequently launched in other European countries during the fourth quarter of the year. The US launch took place in November. Sales of Aprovel® generated by Sanofi and Bristol-Myers Squibb in 1997 amounted to FRF 140 million.

Sales by the Diagnostics business increased by 16% in 1997, at comparable group structure.

Animal Health sales in Europe rose by 21 %, attributable to the good performance of the Animal Nutrition division.

In a relatively unfavorable operating environment, the Beauty business strengthened its positions during the year. Yves Saint Laurent, in the absence of any major fragrance launch, maintained sales at a level comparable to that of the previous year, owing to the good performance of women's fragrances and an increase in the couture sector. Van Cleef & Arpels, Roger & Gallet and Krizia/Fendi all posted increased sales. Finally, the launch of the new women's fragrance "So" de la Renta provided new momentum to sales by Oscar de la Renta, which rose by more than 40 %.
Geographically, the French market experienced a drop in sales, while the rest of Europe mainly registered an increase. North America was adversely affected by the situation in the major US department stores. Lastly, sales in South-East Asia were down, however, this region accounts for only 7 % of the beauty business consolidated sales.

Yves Rocher, which is consolidated by the equity method, saw its sales rise by 3 % to FRF 8 billion. The year was marked by favorable growth of door-to-door sales and a drop in mail-order sales, particularly in Germany.

Nina Ricci was divested on January 8, 1998.
The consolidated earnings figures will be submitted to the Board of Directors on February 24, 1998.