Q3 slips for Revlon, but company looks forward to future
NEW YORK Beauty company Revlon announced on Thursday a 2.2% dip in net sales as net income narrowed during the third quarter, but executives remained optimistic as the manufacturer gears up for 2011 with a new global chief marketing officer in place.
"We remain focused on delivering profitable net sales growth in all of our markets. We recently strengthened our senior management team, including the appointment of Julia Goldin as global chief marketing officer. Under Julia’s leadership, coupled with our competitive pipeline of consumer-preferred new products planned for 2011 and beyond, we see a tremendous opportunity to further integrate marketing strategy and execution across all brands and regions," stated Alan Ennis, Revlon president and CEO.
Net sales during the quarter ended Sept. 30 slipped 2.2% to $319 million. Net income totaled $12.5 million, or 24 cents per diluted share, compared with $23.1 million, or 45 cents per diluted share, in the year-ago period. In the United States, net sales during the quarter were $166.7 million, a decrease of 9.3%. The drop in sales primarily was driven by Revlon color cosmetics and Almay color cosmetics.
As previously reported by Drug Store News, Revlon announced in September the appointment of Julia Goldin as SVP and global chief marketing officer, overseeing all marketing activities for its portfolio of brands. She brings more than 20 years of experience within the consumer packaged goods business, beginning her marketing career at Quaker Oats in Chicago. She then spent 13 years with the Coca-Cola Co. where she held senior executive marketing positions in the United States, Europe and Asia, most recently as SVP and deputy chief marketing officer of Coca-Cola Japan. Prior to that, Goldin led Coca-Cola’s marketing in the United Kingdom and later in Northwest Europe.
WSJ: OPI may be looking to sell
NEW YORK There’s talk that nail polish company OPI Products is looking to sell itself for at least $900 million, according to a Wall Street Journal report.
OPI reportedly is in discussions with several parties, including Coty and private-equity firm Bain Capital, according to WSJ, which cited "people familiar with the matter."
Harris Shepard Public Relations, which represents OPI, stated: "The rumors about the sale of OPI have persisted for years. Other than that, [we] have no comment. Thank you."
WSJ reported that Bain didn’t respond to its request for a comment, and Coty stated that it "had no news to report at this time."
Citing Euromonitor International data, WSJ reported that OPI’s products held roughly 6% of the U.S. market last year.
P&G’s CEO on Q1 results: ‘Purpose-inspired growth strategy’ is working
CINCINNATI Procter & Gamble announced on Wednesday that first-quarter earnings per share from continuing operations exceeded estimates and rose 5% as net sales rose 2% to $20.1 billion.
"Our first quarter was a good start to the fiscal year. We maintained our top-line momentum and delivered profitable market share growth," stated chairman, president and CEO Bob McDonald. "We are confident that our purpose-inspired growth strategy — to touch and improve the lives of more consumers in more parts of the world, more completely — will continue to drive growth and create value for shareholders. While the macro-economic environment remains challenging, the solid first-quarter results demonstrate that our strategy is working."
Net sales for the July-to-September period rose 2% to $20.1 billion, as organic sales grew 4%. Volume increased 8%, with growth in all major geographic regions and 5-of-6 business segments.
Key initiatives for the quarter included the North American launches of Crest Pro-Health Clinical, Tide with Acti-Lift, Gain dishwashing liquid, Febreze Set ‘n Refresh and Gucci Guilty.
In beauty, net sales were in line with the prior year period at $4.9 billion on unit volume growth of 4%. Organic sales grew 3%. Volume in female beauty grew mid-single digits, primarily behind double-digit growth of Olay. Net earnings rose 7% to $829 million.
In grooming, net sales rose 2% to $1.9 billion on a 5% increase in unit volume. Organic sales were up 6%. Male grooming volume grew mid-single digits due to higher shipments of blades and razors, mainly in developing regions, and deodorants in North America and Latin America. Net earnings increased 13% to $398 million.
In health care, net sales were in line with the prior year period at $3 billion on unit volume growth of 6%. Organic sales grew 4%. Oral care volume was up in the high single digits behind the launch of Crest Pro-Health Clinical in North America, expansion of Oral-B toothpaste in Brazil, Belgium and Holland, and the success of the Pro-Health innovation in multiple markets around the world. Net earnings declined 10% to $495 million driven by lower operating margin mainly due to higher marketing spending.