UPDATE 1-Omega Q1 sales disappoint, forecasts Q2 growth

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BRUSSELS, April 17 (Reuters ) - Belgian health products distributor Omega Pharma OMEP.BR reported a worse than expected 4 percent drop in first-quarter sales on Thursday, but said it should return to growth in the subsequent quarter.

The company, which sells non-prescription products to pharmacists, said in a statement that sales totalled 196.0 million euros ($312.8 million) after 204.8 million euros a year earlier, as its Belgian operation disappointed.

The average forecast from a Reuters poll of four analysts was for 205 million euros.

Sales in key market Belgium dropped by 14 percent and in southern Europe by 6 percent, although Omega France saw a 3 percent improvement.

Omega repeated its full year sales forecast for growth excluding acquisitions of between 3 and 7 percent.

"Group turnover is expected to evolve positively again as of the second quarter of 2008," it said.

The company, which demoted its chief executive a month ago as its 2007 results fell short of expectations, said it would strengthen management, achieve synergies and launch new products such as for allergies caused by dust mites this year.

Omega said it believed it could achieve growth in Belgium again in the third quarter.

Company founder and chairman Marc Coucke has replaced CEO Jan Cassiman, who has stepped down to become chief operating officer.

Shares in Omega have fallen more than 40 percent this year, the bulk of the drop coming when it revealed its 2008 growth forecast. (Reporting by Philip Blenkinsop; editing by Rory Channing)