Worldwide net sales up, North America net sales down for Colgate-Palmolive
NEW YORK — Colgate-Palmolive reported on Thursday a 9.5% increase in worldwide net sales as North America net sales slipped 3% during the second quarter.
Worldwide net sales totaled $4.2 billion in the second quarter, an increase of 9.5%, versus second quarter 2010. Organic sales (net sales excluding foreign exchange, acquisitions and divestments) grew 3.5%.
Net income rose 3% to $622 million and diluted earnings per share increased 8% to $1.26. Net income and diluted earnings per share in second quarter 2010 were $603 million and $1.17, respectively.
"We are pleased with our solid top and bottom line growth this quarter with worldwide net sales, operating profit, net income and diluted earnings per share all increasing versus [the year-ago period], despite very sharp increases in material costs, an intense competitive environment globally and challenging macroeconomic conditions, particularly in developed markets," Colgate-Palmolive president and CEO Ian Cook said.
"Colgate’s global market shares in toothpaste and manual toothbrushes are both at record highs year to date," Cook added. "Colgate’s share of the global toothpaste market strengthened to 44.6% year to date, up 0.4 share points versus [a] year ago. Our global leadership in manual toothbrushes also strengthened during the quarter, with Colgate’s global market share in that category reaching 31.9% year to date, up 0.7 share points versus [a] year ago."
In North America, which accounts for 18% of company sales, net sales declined 3%, as organic sales declined 4% during the quarter. In the United States, new product launches — including Colgate Sensitive Multi Protection and Colgate Max Clean SmartFoam toothpastes — and the relaunch of Colgate Total toothpaste helped strengthen Colgate’s leadership in toothpaste, with its share of that market reaching 36% year to date, up 0.6 share points versus year ago. Colgate’s strength in manual toothbrushes also continued, the company stated, driven by Colgate 360° Surround, Colgate 360° ActiFlex, Colgate Total and Colgate Extra Clean manual toothbrushes.
Looking ahead in the United States, third-quarter launches include Colgate Optic White toothpaste and manual toothbrush.
Revlon’s Q2 boosted by Sinful Colors acquisition, net sales for color cosmetics
NEW YORK — Revlon, which has been taking steps to improve its capital structure, posted a boost in second-quarter net sales, largely due to the inclusion of the recently acquired Sinful Colors brand and higher net sales of Revlon color cosmetics.
"In the second quarter of 2011, consistent with our strategy of driving profitable growth, we delivered top line growth of 4%, while supporting our brands at appropriate levels and maintaining competitive operating margins," Revlon president and CEO Alan Ennis said.
"From a marketplace perspective, we introduced successful, innovative, high-quality, consumer-preferred products into the global marketplace, and our acquisition of Sinful Colors is transitioning well and performing to expectations," Ennis continued. "In the quarter, we improved our capital structure by refinancing our bank credit facilities, reducing the interest rates on our debt and extending maturities."
Net sales in the quarter were $351.2 million, an increase of $23.5 million, or 7.2%, compared with $327.7 million in the same period last year. Excluding favorable foreign currency fluctuations of $10.5 million, net sales increased by $13 million, or 4%.
In the United States, net sales were $194.9 million, an increase of $15.6 million, or 8.7%, compared with $179.3 million in the same period last year. The increase primarily was driven by the inclusion of the net sales of Sinful Colors, which Revlon acquired in March, and higher net sales of Revlon color cosmetics.
Net income during the quarter was $6.5 million, or 12 cents per diluted share, compared with net income of $16.4 million, or 31 cents per diluted share, in the same period last year. Net income in second quarter 2011 included charges of $11.3 million, before tax, related to the early extinguishment of debt as a result of the refinancing of the company’s bank credit facilities. The current quarter’s net income also included a foreign currency loss of $1.7 million related to the remeasurement of Revlon Venezuela’s balance sheet.
Slice announces debut of new beauty tools
SAN FRANCISCO — Slice, a maker of cutting tools for home, school, office and industry, has announced that it will debut at the upcoming Cosmoprof North America in Las Vegas a line of new beauty tools designed by architect and designer Michael Graves.
The initial 12 designs are the result of a two-year collaboration between Slice and Graves, and include six different models of tweezers, nail scissors, cuticle scissors, fingernail clippers, toenail clippers, a ceramic nail file and cosmetic pencil sharpener.
Based on the concept of river stones, the products are designed to be comfortable to use and hold in the hand, and feature such materials as ceramics, DuPont Hytrel and German blades. The suggested retail prices range
from $9.99 to $19.99.
The products will be sold to professional beauty supply stores, salons, and to retailers worldwide, as well as via SliceProducts.com. Six styles of tweezers and the cosmetic pencil sharpener now are available and shipping, with the balance of products shipping first quarter 2012. Slice will debut the entire new line at CosmoProf North America, which runs from July 31 through Aug. 2.