Core beauty brand sales help boost Alberto Culver Q3 results

By Simon Pitman

- Last updated on GMT

Related tags Revenue

Falling commodity prices, cost reductions and stronger sales of core beauty brands helped to give Alberto Culver Q3 results a significant boost.

The company said that Q3 net sales increased 18.8 percent to $417.6m, compared to $351.6m in the corresponding quarter last year. On an organic basis, which discounts the effect of currency fluctuations and acquisitions, sales were up by 10.7 percent.

The sales gains also translated into a significant gain in net income, which grew 69 percent from $28m to $47.2m.

US market shows healthy gains

On a nine month basis, sales grew by 11.1 per cent to $1.17bn, which represented a 4.0 percent increase on an organic basis, while net income increased from $87.7m to $113.96m.

In the US, sales increased by 12.7 percent in Q3, a result the company put down to big gains in its core beauty brands, as well as the fact that retailer inventory levels have also bounced back up to pre-recession levels.

Sales in international markets grew by 29.0 percent, a result that was boosted by positive currency fluctuations, together with the acquisition of the UK brand Simple.

Advertising spend up, costs down

Sales and advertising costs increased, on account of big campaigns for the St. Ives and TRESemme brands, as well as new expenditure for the Simple brand.

On the other hand selling and administrative expensives fell from 22.6 percent of the total sales to 19.4 percent, a figure that was significantly boosted by an $8.5m payment that the company received related to a supplier dispute.

"As evidenced by our strong third quarter results, we were able to successfully overcome a difficult economic environment, resolve our US service issues that plagued us earlier in the year and deliver growth for our shareholders,”​ said Carol Lavin Bernick, executive Chairman.

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