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Strong key brands drive Alberto-Culver results

By Simon Pitman, 28-Apr-2008

Alberto-Culver has announced strong sales and profit increases for its second quarter on the back of the continued growth of the Nexxus and Tresemme professional hair care brands.

The company said that sales for the second quarter jumped by 7.7 percent to $412.8m, compared to $383.4m, making total sales for the first six months $813.5m, an increase of 10.7 percent.

"I am particularly proud that in the US, Tresemme and Nexxus' consumer consumption rates, a critical measure of the health of our brands, increased by double-digit rates during the latest 12 and 15 week periods," said CEO James Marino.

Impressive results in a 'challenging' environment

The company CEO also pointed out the fact that the results were even more impressive given the current 'challenging' retail environment, with the mixed consumer trends that have particularly dogged the North American market.

Likewise net earning also rose significantly, from $22.56m in the second quarter of last year to $29.03m for the current quarter - a rise of 28.5 percent.

On the back of the company's ongoing restructuring program, which accounted for just over $2m in costs during the quarter, operating earnings were up nearly 17 percent to $38.26m.

The results were in line with the average expectations of financial analysts.

Sally spin off has spelt good news for the company

The company's profitability has improved significantly since it spun off its professional beauty supplies business, Sally Beauty in November 2006 in an attempt to focus on its consumer brands.

As a result of this, the company reported that discontinued earnings from the Sally Beauty business were $646,000 during the current quarter, compared to $797,000 in the corresponding quarter last year.

The first quarterly results were the first time the company had jumped back into profit since the spin off, when net earnings came in at $30.9m, compared to a loss of just over $5m in the corresponding quarter of 2006.