Lubrizol To Purchase Active Organics
• The Lubrizol Corporation will acquire Active Organics, Inc., a leading manufacturer and supplier of naturally-derived specialty ingredients including botanical extracts and natural performance ingredients for the personal care industry. Financial terms were not disclosed.
The move complements Lubrizol’s existing personal and home care product line, strengthening its strategy of providing high-value technology solutions to its global cosmetic customers, according to the company.
“This acquisition provides Lubrizol with an enhanced presence in the natural ingredients market, which we view as a significant step in continuing to grow our personal and home care product portfolio,” commented Rick Tolin, Lubrizol vice president and general manager, personal care and home care. “The joining of the two companies creates a portfolio of industry-leading technologies that will help make our customers more successful through expanded access to innovative ingredients, formulations and applications knowledge.”
Active Organics works directly with key customers to identify new product opportunities and applications. The company uses its North American manufacturing and distribution platform to meet global product specifications, ensure superior product quality and provide customers reliability of supply while also catering to regional consumer preferences.
“Lubrizol is a known leader in the personal care industry with a strong commitment to investing in the technology, resources and global reach required to meet the demands of today's customers,” said Michael Bishop, president of Active Organics. “Joining with Lubrizol provides significant benefits and opportunities for our talented workforce, as well as our customers, and I am excited about our future together.”
Lubrizol will assume all Active Organics employees. Once the transaction closes, Active Organics will become a wholly-owned subsidiary of Lubrizol Advanced Materials and retain the Active Organics name. Assets transferring include Active Organics’ dedicated technology, know-how, application knowledge, intellectual property, trade names, customer lists and relationships, production capabilities and business base.
WD-40 Sets Sales Record
• Propelled by a 12% fourth quarter sales gain, WD-40 Company reported fiscal 2011 sales rose to a record $336.4 million. Fourth quarter sales rose 12% to $90.7 million. Net income for the fourth quarter jumped 48% to $10.2 million.
Year-to-date net income stayed almost flat, rising 1% to $36.4 million.
“While we are happy with the big year we had and our record sales and net income, the year was not without its own pains with the pressure of rising commodity prices, reduction of gross margin and flat earnings,” said Garry Ridge, WD-40 company president and chief executive officer.
Net sales by segment as a percent of total net sales were as follows: for the Americas, 51% for both the fourth quarter and year-end; for Europe, 38% for the fourth quarter and 37% year-end; and, for Asia-Pacific, 11% for the fourth quarter and 12% year-end. During the fourth quarter 59% of total sales came from outside the US.
“We launched three new products in the new WD-40 Specialist product line, a portfolio of specialty problem-solving products aimed at the trade and doer enthusiast, as planned and had our first shipment in September 2011,” Ridge said. “We will add new items as we roll out the line in January 2012 in the US and in other regions later in the year.”
WD-40 Company expects fiscal year 2012 net sales of $353.0 million to $370.0 million.
Inter Parfums ProvidesGuidance for 2012
• Burberry, Jimmy Choo and Montblanc Legend are just a few Inter Parfums brands that the fragrance powerhouse anticipates will lead the way in its annual sales. In an initial guidance for 2012, the company calls for net sales of $625.0 million and net income attributable to Inter Parfums, Inc. of approximately $35.7 million.Guidance assumes the dollar remains at current levels.
Jean Madar, chairman and CEO of Inter Parfums, noted, “We are looking for 2012 to be another record year. We expect sales of certain products launched in 2011 to remain strong, most notably Burberry Body, where the global rollout is continuing.”
The company also plans wider distribution of the Jimmy Choo signature fragrance and Montblanc Legend. Moreover, the company will assume the legacy fragrance business under the Balmain and Anna Sui brands, as well as the sale and distribution of Boucheron fragrances.
“We are also planning further development of all of our brands in US and Asian markets driven by Interparfums Luxury Brands and Interparfums Singapore,” he added.
Mader said several new product launches are in the works.The first Montblanc fragrance for women and a new women’s scent for Lanvin will debut in Europe. For US-based operations, the first fragrance for Nine West called Love Fury is launching in the first quarter.There are also several new products and extensions in the works for the Gap, Banana Republic and Bebe brands.
Madar concluded by saying, “We continue to pursue new brands for both our European and US-based operations and are hopeful that additional agreements will be consummated in 2012.”
Inter Parfums, Inc. reported that net sales for the second quarter of 2011 increased 12.3% to $121.1 million.
Nail Color, Cosmetics Drive Q3 Sales at Revlon
• Net sales increased 3.6% to $337.2 million for the third quarter at Revlon. The increase was primarily driven by the inclusion of the net sales of Sinful Colors and higher net sales of Revlon color cosmetics and Revlon ColorSilk hair color, partially offset by lower net sales in Venezuela due to the June 2011 fire at the company’s facility there.
Commenting on the financial report, Revlon president and chief executive officer Alan T. Ennis, said, “In the third quarter, we continued to execute our strategy as we grew net sales by 3.6%, maintained competitive operating income margins and generated positive free cash flow. From a marketplace perspective, our continued emphasis on innovation, effective brand communication and strong in-store execution positively impacted our performance. During the quarter, two of Hollywood’s most sought-after actresses, Emma Stone and Olivia Wilde, joined us as global brand ambassadors for our Revlon brand.”
In the US, net sales jumped 10.8% to $184.7 million. The increase was primarily driven by the inclusion of the net sales of Sinful Colors and higher net sales of Revlon color cosmetics and Revlon ColorSilk hair color.
Internationally, in the Asia Pacific region, net sales increased 6.4% to $58.0 million. In Europe, Middle East and Africa, net sales in the third quarter of 2011 were $51.1 million, essentially unchanged year-over-year.
In Latin America, net sales slipped 12.6% to $25.6 million. The decrease was primarily due to lower net sales in Venezuela where the company has not fully resumed business since the June 2011 fire. Excluding Venezuela, net sales in Latin America increased as compared to the same period last year, primarily due to higher net sales of Revlon color cosmetics throughout the region and higher net sales of other beauty care products in Argentina.
In Canada, net sales in the third quarter of 2011 were $17.8 million, essentially unchanged year-over-year.
Latest Quarter at CloroxAs Expected by Analysts
• Clorox said its quarterly profit actually fell 1.2% to $169 million, but the figure still topped analysts’ consensus call by more than $10 million. Fourth-quarter revenue increased 3.5% to a better-than-expected $1.48 billion. Sales grew in all four of Clorox’s business segments.
Clorox also said its portfolio of brands, which includes Clorox, Glad, Brita, Armor All, Burt’s Bees, STP and Kingsford, achieved its highest ever market share of 27.9%. Volume in the fourth quarter grew 2%, led by gains in the company’s cleaning and household segments.
More specifically, within the cleaning segment, fourth quarter volume rose 4%, according to the company.
For the year, sales were flat at $5.2 billion, with the benefit of price increases offset by unfavorable product mix and the impact of incremental customer pick-up allowances. Volume was flat, as gains from Burt’s Bees natural personal care products, the Away From Home institutional business and Home Care were offset by lower shipments of Glad food storage products and laundry additives due to category softness.
Looking ahead to fiscal 2012, the company expects 1-3% sales growth.
Nu Skin Thinks Big for 2012
• Anti-aging skin care is still proving fruitful to Nu Skin Enterprises, Inc., marketer of the popular ageLoc collection. The company updated its fourth quarter 2011 guidance and recently issued 2012 financial guidance in advance of its annual investor day. The company increased its fourth quarter revenue guidance to $475-$485 million, and 2012 revenue guidance to $1.80-$1.83 billion.
“As we come to the conclusion of another record year, we continue to build momentum for the future,” said Truman Hunt, company president and chief executive officer. “We are revolutionizing the fight against aging through our ageLoc product pipeline, innovating in our direct-selling channel, experiencing stellar growth in emerging markets, and continuing to drive shareholder value through improved efficiencies and increasing cash flow.
“We are experiencing a very positive response from our distributor force following our global convention and the initial limited-time-offering of our new anti-aging products,” Hunt continued. “The fourth quarter is shaping up even stronger than our initial forecast, and we have confirmed the amount of new products that will be shipped in January–allowing us to increase our guidance for the quarter and for 2012.
Nu Skin reported record third-quarter sales of $428 million, a 12% improvement, according to the company.
Regis’ Sales Slip in Q1
• Hair salon giant Regis Corporation said consolidated revenues fell 1.7% to $569 million for the first fiscal quarter of 2012. First quarter total same-store sales decreased 3.1%.
As of June 30, 2011, Regis owned, franchised or held ownership interests in approximately 12,700 worldwide locations, operating under concepts such as Supercuts, Sassoon Salon, Regis Salons, MasterCuts, SmartStyle, Cost Cutters, Cool Cuts 4 Kids and Hair Club for Men and Women.