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Colgate-Palmolive shines
F O C US players have also emphasized segments showing rising consumer demand, particularly for products based on green or natural ingredients. These include Clorox’s $925 M acquisition of US-based personal care products producer Burt’s Bees in late 2007. In the detergent sector, formulation trends gaining strong interest are cold water washing, which helps reduce energy consumption, and compaction, a method of concentrating formulations to cut packaging as well as transportation volumes and fuel use. Use of enzymes in detergent formulations is also picking up because of their cost advantages coupled with sustainability potentials. Enzyme suppliers revealed that it has now become possible to replace 25% of surfactants in formulations and still obtain the same performance. Chemical Week, 26 Jan 2009, (Website: http://www.chemweek.com)
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S U R FAC TA N T S
2008. Sales of Henkel’s Purex liquid climbed by 3.1% to $227.7 M. Sales of Church & Dwight’s Arm & Hammer rose by 3.5% to $167.6 M, while its Xtra brand sales increased by almost 6% to $114 M. While other producers capitalize on cheaper brands, Method and Seventh Generation chose to offer eco-friendly laundry care products. Method introduced a biodegradable, dye-free and phosphate-free detergent called Squeaky Green. Seventh Generation launched chlorine-free, biodegradable and compostable fabric softener sheets. HAPPI, Household & Personal Products Industry, Jan 2009, 46 (1), 77-78,80,82,84
COMPANY RESULTS
Spin cycle: US laundry care market
Henkel in 3Q 2008: Laundry & Home Care
P&G continues to develop new technologies to protect its strong hold in the US laundry care industry; however, economic difficulties and environmental awareness are opening new opportunities for second-tier players. Recently, P&G launched its Total Care concept for Tide and liquid fabric softener Downy. The technology is claimed to help preserve and protect clothes longer. Tide generated sales of $1.29 bn, up by 7.41% for the 52 weeks ended 2 Nov 2008, dwarfing other products in the $3 bn liquid category. Following Tide was Sun Product Corp’s All Liquid, which generated sales of $230.6 M, according to figures by Information Resources Inc. Sun Products is the newly merged operations of Huish and Unilever’s former North American laundry care brands. In Mar 2009, the firm will be transferring to its new HQ in Wilton, CT. However, analysts doubt whether other market players can cut into P&G’s share in the market given the combined strength of its Gain and Tide brands. Despite this, the struggling economy seems to help smaller players that offer more affordable brands. Based on IRI figures, many value and mid-range liquid detergent products recorded growth for the 52 weeks ended 2 Nov
For its 3Q 2008, the Laundry & Home Care sector of Henkel AG & Co KGaA has reported sales of €1068 M (€1053 M for 3Q 2007) and EBIT of €117 M (€126 M). For the first nine months of its fiscal 2008, this sector has reported sales of €3111 M (€3146 M for the same period in 2007) and EBIT of €309 M (€354 M). The foreign exchange impact amounted to a negative 2.1%. Although operating profit fell, this was nevertheless the highest quarterly total in 2008. Again, it reflects the increase in raw material prices that led to a substantial rise in input costs. These were partially offset by price increases and countermeasures introduced to reduce costs and increase efficiency. Included for the first time in Laundry & Home Care’s operating profit is €3 M in expenses previously attributable to the former Corporate Research function. In the Laundry segment, the company achieved the highest increases in organic sales in its growth regions. Here the biggest brand, Persil, was the main growth driver, benefiting from innovations such as Persil Gold Plus launched in a number of countries in Central and Eastern Europe. Sales generated in North America by Purex, Henkel’s second
MARCH 2009
largest global detergent brand, again registered an increase. The improvement in the organic sales of the Home Care business was also due primarily to performance in the growth regions, especially Eastern Europe. Press release from: Henkel AG, Henkelstrasse 67, 40589 Düsseldorf, Germany. Tel: +49 211 7970. Fax: +49 211 798 4008. Website: http://www.henkel.com (6 Nov 2008)
P&G delivers 2Q 2008-2009 organic sales in line with expectations Procter & Gamble (P&G) announced net sales of $20.4 bn for 2Q 20082009 ended Dec 2008 down 3% primarily due to unfavourable foreign exchange and lower volume. Organic sales increased 2% for 2Q 20082009. Net earnings were up 53% to $5 bn due to the gain from the Folgers transaction. Net earnings from continuing operations declined 7% to $3 bn due to lower net sales and operating margin during 2Q 2008-2009. Beauty care net sales decreased 4% to $4.9 bn for the quarter with Grooming net sales down 7% to $2 bn. Oral Care volume decreased low-single-digits primarily due to trade inventory reductions of Crest. Fabric Care and Home Care net sales decreased 4% to $5.8 bn for 2Q 2008-2009, while net sales for Baby Care and Family Care increased 3% to $3.5 bn on 1% volume growth. For 3Q 2008-2009 total sales are expected to be down 2-7%. Press release from: The Procter & Gamble Co, 1 or 2, Procter & Gamble Plaza, Cincinnati, OH 45201, USA. Tel: +1 513 983 1100. Website: http://www.pg.com (30 Jan 2009)
Colgate-Palmolive shines Colgate-Palmolive had a 19.8% rise in net profits in 4Q 2008 to $497 M. With special effects excluded, there was a rise of 7.5% to $527.5 M. Sales were up just 0.5% at almost $3.7 bn. Organic growth (net of currency effects, takeovers and spin-offs) was 9%. Chairman Ian Cook is optimistic for 2009; gross margins are expected to improve. Full-year sales for 2008 were up 11% at $15.3 bn and net profits were close to $2 bn, up 12%. Handelsblatt Wirtschafts- und Finanzzeitung, 29 Jan 2009, (Website: http://www.handelsblatt.com) (in German)
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O N
S U R FAC TA N T S
2008. Sales of Henkel’s Purex liquid climbed by 3.1% to $227.7 M. Sales of Church & Dwight’s Arm & Hammer rose by 3.5% to $167.6 M, while its Xtra brand sales increased by almost 6% to $114 M. While other producers capitalize on cheaper brands, Method and Seventh Generation chose to offer eco-friendly laundry care products. Method introduced a biodegradable, dye-free and phosphate-free detergent called Squeaky Green. Seventh Generation launched chlorine-free, biodegradable and compostable fabric softener sheets. HAPPI, Household & Personal Products Industry, Jan 2009, 46 (1), 77-78,80,82,84
COMPANY RESULTS
Spin cycle: US laundry care market
Henkel in 3Q 2008: Laundry & Home Care
P&G continues to develop new technologies to protect its strong hold in the US laundry care industry; however, economic difficulties and environmental awareness are opening new opportunities for second-tier players. Recently, P&G launched its Total Care concept for Tide and liquid fabric softener Downy. The technology is claimed to help preserve and protect clothes longer. Tide generated sales of $1.29 bn, up by 7.41% for the 52 weeks ended 2 Nov 2008, dwarfing other products in the $3 bn liquid category. Following Tide was Sun Product Corp’s All Liquid, which generated sales of $230.6 M, according to figures by Information Resources Inc. Sun Products is the newly merged operations of Huish and Unilever’s former North American laundry care brands. In Mar 2009, the firm will be transferring to its new HQ in Wilton, CT. However, analysts doubt whether other market players can cut into P&G’s share in the market given the combined strength of its Gain and Tide brands. Despite this, the struggling economy seems to help smaller players that offer more affordable brands. Based on IRI figures, many value and mid-range liquid detergent products recorded growth for the 52 weeks ended 2 Nov
For its 3Q 2008, the Laundry & Home Care sector of Henkel AG & Co KGaA has reported sales of €1068 M (€1053 M for 3Q 2007) and EBIT of €117 M (€126 M). For the first nine months of its fiscal 2008, this sector has reported sales of €3111 M (€3146 M for the same period in 2007) and EBIT of €309 M (€354 M). The foreign exchange impact amounted to a negative 2.1%. Although operating profit fell, this was nevertheless the highest quarterly total in 2008. Again, it reflects the increase in raw material prices that led to a substantial rise in input costs. These were partially offset by price increases and countermeasures introduced to reduce costs and increase efficiency. Included for the first time in Laundry & Home Care’s operating profit is €3 M in expenses previously attributable to the former Corporate Research function. In the Laundry segment, the company achieved the highest increases in organic sales in its growth regions. Here the biggest brand, Persil, was the main growth driver, benefiting from innovations such as Persil Gold Plus launched in a number of countries in Central and Eastern Europe. Sales generated in North America by Purex, Henkel’s second
MARCH 2009
largest global detergent brand, again registered an increase. The improvement in the organic sales of the Home Care business was also due primarily to performance in the growth regions, especially Eastern Europe. Press release from: Henkel AG, Henkelstrasse 67, 40589 Düsseldorf, Germany. Tel: +49 211 7970. Fax: +49 211 798 4008. Website: http://www.henkel.com (6 Nov 2008)
P&G delivers 2Q 2008-2009 organic sales in line with expectations Procter & Gamble (P&G) announced net sales of $20.4 bn for 2Q 20082009 ended Dec 2008 down 3% primarily due to unfavourable foreign exchange and lower volume. Organic sales increased 2% for 2Q 20082009. Net earnings were up 53% to $5 bn due to the gain from the Folgers transaction. Net earnings from continuing operations declined 7% to $3 bn due to lower net sales and operating margin during 2Q 2008-2009. Beauty care net sales decreased 4% to $4.9 bn for the quarter with Grooming net sales down 7% to $2 bn. Oral Care volume decreased low-single-digits primarily due to trade inventory reductions of Crest. Fabric Care and Home Care net sales decreased 4% to $5.8 bn for 2Q 2008-2009, while net sales for Baby Care and Family Care increased 3% to $3.5 bn on 1% volume growth. For 3Q 2008-2009 total sales are expected to be down 2-7%. Press release from: The Procter & Gamble Co, 1 or 2, Procter & Gamble Plaza, Cincinnati, OH 45201, USA. Tel: +1 513 983 1100. Website: http://www.pg.com (30 Jan 2009)
Colgate-Palmolive shines Colgate-Palmolive had a 19.8% rise in net profits in 4Q 2008 to $497 M. With special effects excluded, there was a rise of 7.5% to $527.5 M. Sales were up just 0.5% at almost $3.7 bn. Organic growth (net of currency effects, takeovers and spin-offs) was 9%. Chairman Ian Cook is optimistic for 2009; gross margins are expected to improve. Full-year sales for 2008 were up 11% at $15.3 bn and net profits were close to $2 bn, up 12%. Handelsblatt Wirtschafts- und Finanzzeitung, 29 Jan 2009, (Website: http://www.handelsblatt.com) (in German)
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