The Procter & Gamble Company reported first quarter net sales increased 2% to $20.1 billion, and volume increased 8% driven by growth in all major geographic regions and five of six business segments.
“Our first quarter was a good start to the fiscal year.We maintained our top-line momentum and delivered profitable market share growth,” said chairman, president and chief executive officer Bob McDonald.
Key initiatives for the quarter included the North American launches of Tide with Acti-Lift, Crest Pro-Health Clinical, Gain dishwashing liquid, Febreze Set ‘n Refresh and Gucci Guilty and brand restages of Pantene in Asia and Downy in North America, according to the company.
Beauty net sales of $4.9 billion were in line with the prior year period on unit volume growth of 4%, according to the company. However, there were declines in the premium-priced categories of prestige products and salon professional. Volume in retail hair care increased mid-single digits behind double-digit growth in developing regions led by Pantene and Head & Shoulders. Volume in female beauty grew mid-single digits primarily behind double-digit growth of Olay, Safeguard and Venus. Volume in salon professional declined high single digits mainly due to the exit of non-strategic businesses. Volume in prestige products was down high single digits behind lower shipments in Western Europe and the divestiture of minor brands. Net earnings increased 7% to $829 million.
Grooming net sales increased 2% to $1.9 billion. Net earnings increased 13% to $398 million driven primarily by net sales growth and operating margin expansion.
Oral care volume was up high single digits behind the launch of the Crest Pro-Health Clinical line in North America, expansion of Oral-B toothpaste in Brazil, Belgium and Holland, and the success of the Pro-Health innovation in multiple markets around the world.
Fabric care and home care net sales increased 3% to $6.3 billion. Volume in fabric care increased high single digits mainly due to initiative activity in many markets and increased distribution in developing regions. Net earnings decreased 7% to $937 million.
According to the company, total net sales are expected to increase 3-5% in fiscal 2011.
Fiscal 2010 Good To Elizabeth Arden
Elizabeth Arden, Inc. posted a rise in sales for its fourth fiscal quarter and year ended June 30, 2010.
For the quarter ended June 30, 2010, the company reported sales that rose 7.4% to $228.2 million.
For the year ended June 30, 2010, Elizabeth Arden’s sales rose 3.1% to $1.1 billion.
E. Scott Beattie, chairman, president and chief executive officer of Elizabeth Arden, Inc., commented, “Just over two years ago, we embarked on a global re-engineering of our major business processes and the implementation of a new enterprise software system to improve the efficiencies and scalability of our business. The progress made with these initiatives is evident in our results.”
For fiscal 2011, net sales are expected to increase by 3-4%, according to the company.
Sales Rise 8% at Helen of Troy
Helen of Troy Limited reported favorable net sales and record net income for the second quarter and six months ended Aug. 31, 2010.
Second quarter net sales revenue increased 7.8% to $174.8 million. Net income rose 47.5% to $23.4 million. Net sales revenue for the personal care segment increased 6.7% to $119.1 million in the second quarter.
For the six months ended Aug. 31, 2010, net sales revenue jumped 9.4% to $334.9 million. Net income for the first half increased 37.6% to $41.9 million. Net sales for the personal care segment increased 8.7% to $231.3 million.
Perfume, Cosmetics Are Lucrative for LVMH
Who says that luxury is dead in the new consumer’s mind? LVMH Moët Hennessy Louis Vuitton said revenue for the nine months jumped 19% to $18.74 billion, thanks to strong momentum in Asia, Europe and America.
Overall sales rose 14% in organic terms, the luxury group reported. The perfume and cosmetics division reported a 14% gain through three quarters. The division’s organic growth was 10%.
“The excellent performance of LVMH in the first nine months of the year has confirmed its confidence for 2010. The group will continue its proactive strategy focused on innovation and targeted geographical expansion in the most promising markets,” LVMH said in a statement.
Q2 Sales Increase at Oriflame
Oriflame reported that second quarter sales rose 19% to $493 million. During the period, the average size of its sales force increased 5% to 3.6 million. However, the company noted that during the quarter, business conditions in Iran deteriorated, and as a result, Oriflame is now evaluating its options in this market.
For the six months, sales increased 12% to $968 million, while net profit before restructuring costs topped $87 million at current exchange rates.
Q3 Sales Jump 15% at L’Oréal
L’Oréal SA said third-quarter sales jumped 15%, driven by strong consumer demand for its mass market products. For the nine months, sales increased 11.6% to nearly $19 billion.
L’Oréal said third-quarter sales totaled $6.77 billion. Eliminating currency fluctuations and acquisitions, sales grew 5.8%.
“The growth is due to the improvement in market share,” said L’Oréal chief executive Jean-Paul Agon.
“Organic growth remained sustained in the third quarter, despite a higher comparison base. This performance confirms the clear upturn in sales recorded since the start of the year.”
According to Agon, all the divisions are contributing to this expansion. Consumer products are significantly strengthening their positions, thanks in particular to the very strong dynamism of Maybelline. Luxury products are being bolstered by the vitality of the division’s major brands such as Lancôme, Yves Saint Laurent and Giorgio Armani; as well as by the success of its latest fragrance launches and the global roll-out of Kiehl’s.
Professional products are continuing their conquest of new salons, thanks, in particular, to the powerful roll-out of the new hair colorant Inoa, added Agon.
In geographical terms, growth is solid in North America and the group is strongly reinforcing its positions in the new markets, particularly in Latin America and Asia.
“Overall, the growth rate for the first nine months bears out our major strategic choices,” said Agon.
He concluded, “In a growing cosmetics market, and despite a less favorable monetary context, we are confirming our aim of strengthening, over the full-year, our worldwide positions and the profitability of our businesses.”
Limited Brands Posts 6% Increase in Sales
Limited Brands, Inc. reported a comparable store net sales increase of 6% to $965.4 million for the five weeks ended July 3, 2010, according to the company.
For the half year, or 22 weeks ended July 3, 2010, net sales rose 8% to $3.6 billion.
Profits Surge for Symrise With 20% Jump in Sales
Crediting a global economic recovery that was “particularly evident” in fine fragrance and personal care, Symrise more than doubled its net income in the second quarter as sales grew 20.1%.
According to its latest report, group sales totaled $518.7 million in the second quarter. Net income hit $61.8 million.
The Scent & Care division, which generates more than half of group sales, reported a 26.4% gain in the quarter to $264.3 million.
Sales to the company’s top 10 customers rose 15% in local currency in the first half of 2010, and all geographic regions posted double-digit growth in the six-month period, said the report.
Record Q3 for Ecolab
Ecolab Inc. reported record third quarter earnings, as strong sales growth in its Asia Pacific and Latin American operations, along with solid U.S. profit improvement, benefited results, according to the company.
Ecolab’s reported net sales rose 1% to $1.6 billion in the third quarter of 2010. Net income jumped 20% to $174 million.
Third quarter 2010 sales for Ecolab’s U.S. Cleaning & Sanitizing operations rose 4% to $719 million. Operating income increased 5% to $149 million.
U.S. Other Services third quarter sales of $118 million were flat when compared with last year. Operating income grew 7% to $20 million.
Profits Fall at Kimberly-Clark
Consumer products maker Kimberly- Clark Corporation’s third-quarter net income fell 19% to $469 million on higher costs to make its tissues and diapers, according to the company. Revenue rose 1% to $5 billion.
The Dallas company has been tweaking products and prices to keep up with the economy, according to reports.