Strong Latin American growth boosts Alberto Culver results
The US-based company reported net sales for the three months ending September 30 of $386.0m, up 7.3 per cent on the same period last year.
TRESemme drives growth
The success of the TRESemme hair care range, along with strong multi-cultural brands and healthy growth in Latin America, were cited as the reasons behind the strong results.
In contrast, the performance of the Nexxus brand suffered as sales in the current quarter were unable to match a particularly strong period last year. The weak performance of the skin care brand St. Ives also impacted results, according to the company.
The strong fourth quarter boosted the company’s annual performance, with net sales for the period coming in at $1.44bn, a 9.7 percent increase on last year’s figures.
Strong sales growth contributed to a healthy profit for the year. Excluding restructuring costs and discrete items, pre tax earnings increased 33 percent to reach $178.1m.
Focus on skin care
Net earnings amounted to $228.15m however, this figure benefited substantially from a $110.7m gain from the sale of the Cederroth business earlier this summer.
The company announced its plan to sell the Swedish subsidiary back in May, citing a wish to concentrate on its successful core beauty brands as the reason behind the sale.
The sale was completed in July and the company has since announced a plan to acquire the Noxzema skin care brand from Procter and Gamble in an attempt to focus on this area of its portfolio.
The worldwide rights and trademarks to the brand will become the property of Albert Culver which will distribute products in the US, Canada and parts of Latin America.
However, Procter and Gamble will continue to operate the Noxzema shaving, deodorant, body wash and body soap businesses in parts of Western Europe.
