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Household brands maker Alberto-Culver's Q2 earnings soar 10%
02 Aug '05
6 min read
Including the non-cash charges and prior year gain on the sale of Indola, net earnings were $151.9 million compared to $93.8 million, diluted earnings per share were $1.63 versus $1.02 last year and basic earnings per share were $1.66 compared to $1.04.
Mr. Howard B. Bernick, President and Chief Executive Officer, stated, "On an organic like for like basis, excluding acquisitions, the Indola divestiture, and a positive benefit from foreign currency translation, sales increased 5.8% in the third quarter and 5.6% in the first nine months of their 2005 fiscal year."
The earnings percent growth rate in the most recent quarter was in line with their expectations as they put interest expense savings resulting from last year's early debt retirement into building top line revenues for the long-term.
Throughout this year they have again continued to invest resources into brands and businesses, including significant advertising and marketing spending, which is expected to approach $300 million this year. Escalating raw material costs and higher fuel costs reduced third quarter and to a lesser extent nine-month earnings growth rates particularly in global consumer products business.
"These branded product businesses continued their impressive sales growth trend, led by TRESemme in both the U.K. and North America and the ongoing success of earlier launches of new Alberto VO5 and St. Ives offerings at home and abroad. Strong double-digit revenue growth of consumer products brands in the third quarter and nine-month periods outpaced overall increases in the haircare and skincare categories worldwide," Mr. Bernick added. "They also completed the acquisition of Nexxus Products Company during the third quarter and look forward to it making a meaningful contribution to consumer products business in 2006 and future years."
Mr. Howard B. Bernick, President and Chief Executive Officer, stated, "On an organic like for like basis, excluding acquisitions, the Indola divestiture, and a positive benefit from foreign currency translation, sales increased 5.8% in the third quarter and 5.6% in the first nine months of their 2005 fiscal year."
The earnings percent growth rate in the most recent quarter was in line with their expectations as they put interest expense savings resulting from last year's early debt retirement into building top line revenues for the long-term.
Throughout this year they have again continued to invest resources into brands and businesses, including significant advertising and marketing spending, which is expected to approach $300 million this year. Escalating raw material costs and higher fuel costs reduced third quarter and to a lesser extent nine-month earnings growth rates particularly in global consumer products business.
"These branded product businesses continued their impressive sales growth trend, led by TRESemme in both the U.K. and North America and the ongoing success of earlier launches of new Alberto VO5 and St. Ives offerings at home and abroad. Strong double-digit revenue growth of consumer products brands in the third quarter and nine-month periods outpaced overall increases in the haircare and skincare categories worldwide," Mr. Bernick added. "They also completed the acquisition of Nexxus Products Company during the third quarter and look forward to it making a meaningful contribution to consumer products business in 2006 and future years."
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