Executives said exchange rate developments of the U.S. dollar, the Japanese yen and Latin American currencies also put a strain on business from April to June. However, except in some Asian countries, the war in Iraq and the SARS epidemic had no significant influence on the group’s performance. The decline of tourism was only felt in the travel retail segment and in the duty free business of the cosmetics and fragrances division.
Sales in the professional division, increased 6.1% in the second quarter. After exchange rate adjustments, the consumer division raised its sales by 3.3% and the cosmetics and fragrances division by 8.5%. The acquisitions of Tony & Tina in June 2002 and Atkinsons in August 2002 contributed 7.4 million euros to sales in the second quarter of 2003.
Wella assumes that the global consumption climate will also remain weak over the coming months. However, “We are confident that 2003 can become a good business year,” said Heiner Guertler, chief executive officer of Wella AG. l