Alberto-Culver reports high growth figures
The owner of brands such as TRESemme, Alberto V05, Nexxus and St. Ives posted a 12.3 percent increase in net sales to $364.9m for the three months ending June, 30.
"These are very strong results, especially when considering the US and UK hair care categories are a bit soft," said Alberto-Culver President and CEO V. James Marino.
The company translated strong sales growth into a 21.8 percent rise in earnings from continuing operations but the poor performance of its soon to be sold Swedish subsidiary Cederroth dragged turnover down.
In May, Alberto-Culver announced the sale of Cederroth, which operates in the healthcare, personal care and household sectors.
Focus on beauty brands
The company said it was selling the subsidiary in order to concentrate on its successful nucleus of beauty brands.
Classified as discontinued operations, Cederroth's performance dulled the sheen of Alberto-Culver's sales figures in its latest results.
Net earnings for the quarter fell 15.8 percent to $21.1m.
Predictions for the coming quarter
Looking ahead Alberto-Culver intends to achieve growth by sharpening its focus on beauty care although the company warned that fourth quarter figures may appear to be disappointing.
"While business fundamentals in terms of growth and margins remain solid, as we've said before, fourth quarter sales growth will be tempered by a difficult comparison due to the timing of various initiatives and the expansion of Nexxus into the club channel a year ago," said Marino.