Acquisitions and divestments put Alberto-Culver on track
half-yearly results, hair care specialist Alberto-Culver says it is
on course to deliver record results.
"The Company anticipates that it will announce record second quarterand year-to-date sales and earnings results," said Howard Bernick, president and CEO for Alberto-Culver.
"We are pleased with our fiscal 2006 progress, and based upon results to date for the quarter, we expect our consumer products group to post good sales and earnings growth led by the retail launch of Nexxus," he added.
Bernick also noted that the company's Sally Beauty Supply stores had continued their consistent growth record of late and that the indications are that its Beauty Systems Group is on track for an improved profit performance this year.
In the past year the company has undergone a period of great change, with acquisitions and divestments of less profitable divisions helping to boost steady underlying growth, resulting in a far more dynamic and profitable business portfolio.
Most recently it divested its Sally Beauty business, merging it with Regis back in January. The deal is estimated to be worth $2.6bn and should transform the company into a $4.5bn business.
Alberto-Culver said that its board of directors is currently reviewing recent information regarding Regis' third quarter results andrevised outlook for the fiscal fourth quarter and 2006 fiscal year.
It added said that after the review the company may comment on the results, but that otherwise it would be Regis that would be responsible for the dissemination of information regarding the results.
The companies are expecting that the transaction will be completed in the early summer of 2006, subject to stock exchange, antitrust and internal revenue regulations. The newly combined company will then remain headquartered in Minneapolis under the same name and headed up by Regis CEO Paul Finkelstein.
On January 26, the Alberto-Culver announced record first quarter results, with sales up 6 per cent to reach $898.3m and net profits rising 5.4 per cent to reach $52.1m, with the UK being singled out as one of the best performing markets, achieving sales double digit sales growth.