Alberto-Culver Reports Q1 Sales Jump

Alberto Culver said first quarter sales increase 11.7% to $405.3 million. On an organic basis, which excludes the effect of foreign currency fluctuations and acquisitions, sales increased 4.4% in the current quarter.


On September 27, 2010, the company entered into a definitive agreement with Unilever pursuant to which Unilever will acquire all of the outstanding shares of Alberto Culver for $37.50 per share in cash. On December 17, 2010, the transaction was approved by Alberto Culver stockholders.


In the U.S., Q1 sales increased 2.8% in the first quarter, largely due to strength in hair care, particularly Nexxus. International sales on a reported basis increased 25.2% (the net effect of foreign currency fluctuations and acquisitions accounted for approximately 18.3% of the growth) behind strong growth in all regions in both hair care and skin care.

The company’s gross profit margin was 53.2% in the first quarter compared to 53.4% in the prior year first quarter. The slight decrease in gross margin was primarily due to higher input costs.

Advertising and other marketing investments in the first quarter increased 9.6% to $55.0 million compared to $50.1 million in the prior year first quarter.