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P&G delivers strong sales for 3Q 2005-2006; raises 2005-2006 outlook
FOCUS foreign exchange and acquisitions/ divestments) of 3-4% and around 10% growth in operating profit (EBIT) after adjusting for foreign exchange. Press release from: Henkel, Henkelstr. 67, D-40589 Düsseldorf, Germany. Tel: +49 211 7970. Website: http://www.henkel.com (3 May 2006)
P&G delivers strong sales for 3Q 20052006; raises 2005-2006 outlook The Procter & Gamble Co (P&G) reported that net sales, which include the Gillette business, increased 21% to $17.25 bn for 3Q 2005-2006, ended 31 Mar 2006. Net earnings increased 37% to $2.21 bn during the quarter behind sales growth and significant margin improvement. P&G Beauty net sales increased by 6% to $5.16 bn and net earnings increased 10% to $738 M; Baby Care and Family Care net sales were $3.03 bn and net earnings increased 2% to $326 M; and P&G Household Care net sales increased 7% to $4.08 bn and earnings grew 13% to $545 M. Earnings before income taxes were $361 M during 3Q 2005-2006. For 2005-2006, the company expects its fourth consecutive year of base business growth at or above its longterm growth targets. Net sales are expected to grow 19-20% for 20052006. In India, P&G Hygiene and Healthcare Ltd has recorded an 81% increase in net profit at Rup 265.4 M on total income of Rup 1241 M for 3Q ended Mar 2006 (net profit of Rup 146.6 M on total income of Rup 1748.6 M in 3Q ended Mar 2005). The two results cannot be compared because the company has exited the detergent manufacturing business in India. 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 (3 May 2006) & Business Line, 29 Apr 2006, 13 (118), 3
Colgate reports good growth in 1Q 2006 For 1Q 2006, Colgate-Palmolive Co has reported turnover, including divestments, of $2870.6 M ($2743 M for 1Q 2005), with every operating division delivering volume increases. Excluding divestments, worldwide sales and unit volume grew 7.0%. Increased global pricing of 1.5% was offset by negative foreign exchange 6
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of 1.5%. Reported net income was $324.5 M, including restructuring and stock compensation charges. Excluding these items, net income increased 11% versus 1Q 2005 to $383.4 M. Operating profit as reported increased 5% versus 1Q 2005 to $517.5 M. Worldwide advertising supporting Colgate’s brands also rose 11% to $297.1 M, a first quarter record, with every operating division increasing their advertising spend. The oral, personal & homecare products segment recorded 1Q net sales of $2485.3 M, up from $2383.6 M in 1Q 2005, of which North America $617.6 M ($609.7 M), Latin America $692.7 M ($588.5 M), Europe/South Pacific $691.7 M ($720.2 M) and Greater Asia/Africa $483.3 M ($465.2 M). Operating profit for the segment was $561.4 M ($517.1 M), of which North America $132.3 M ($136.8 M), Latin America $211.2 M ($163.1 M), Europe/South Pacific $152.5 M ($154.4 M) and Greater Asia/Africa $65.4 M ($62.8 M). North America accounted for 22% of total sales. Sales as reported rose 1.5% while operating profit decreased 3%, due primarily to the year-on-year impact of the divestment of the North American detergent business. New personal and home care products contributing to growth include Ajax Ruby Red Grapefruit and Palmolive Oxy Plus dish liquids, Irish Spring MicroClean bar soap, and Softsoap Brand Kitchen Fresh Hands and Softsoap Brand Shea Butter liquid hand soaps. Latin America (24% of total sales) saw dollar sales grow 17.5% in the first quarter to a record level. Unit volume for the region grew 7.0%, with all 18 countries in the region contributing. Europe/South Pacific accounted for a further 24% of company sales, with volume up 7.5%, including divestments. Strong volume gains in the UK, Germany, Denmark, Spain, Italy, Ireland, Greece, Holland, Adria, Poland, the Baltic States, Hungary and Australia more than offset challenging economic conditions in France. Dollar sales in the region, as reported, declined 4.0% as strong unit volume growth was more than offset by 9.0% negative foreign exchange and negative pricing of 2.5%. Operating profit for the region decreased 1% in dollars as a result of the sharp
decrease in European currency value. In Greater Asia/Africa (17% of sales), strong volume gains were achieved in India, Vietnam, Hong Kong, Malaysia, Thailand, Russia, Ukraine, Turkey, Saudi Arabia, the Gulf States and South Africa. Sales and volume, as reported, increased 4.0% and 2.5%, respectively, reflecting the year-onyear impact of the divestment of the detergent business in Southeast Asia. Operating profit for the region increased 4% to a record level. Colgate strengthened its oral care leadership in the region led by toothpaste market share gains in Greater China, India, Hong Kong, Russia and Turkey. The company is celebrating the 200th anniversary of its founding this year. Press release from: Colgate-Palmolive Co, 300 Park Avenue, New York, NY 10022, USA. Tel: +1 212 310 2000. Website: http://www.colgate.com (26 Apr 2006)
HLL 4Q 2005-2006 net profit rises 76.9% Hindustan Lever Ltd (HLL) has posted a 76.9% increase in net profit (inclusive of exceptional items of Rup 1488.8 M) to Rup 4428.6 M on net sales of Rup 27.9805 bn for 4Q ended Mar 2006 (net profit of Rup 2502.5 M on net sales of Rup 25.0638 bn in 4Q ended Mar 2005). Exceptional items for 4Q 2005-2006 included profit of Rup 2.02 bn on the sale of the Nihar brand. HLL spent Rup 3033.4 M on advertising and promotions for 4Q 2005-2006 (Rup 2087.3 M in 4Q 2004-2005). The company’s home and personal care (HPC) business increased by 20% to Rup 20.6841 bn for 4Q 2005-2006 (Rup 17.2438 bn in 4Q 2004-2005). Laundry, shampoo and skincare products were the main growth drivers. Business Line, 29 Apr 2006, 13 (118), 1
COMPANY NEWS Air Products plans to enter the personal care market Air Products has reached a technology licence and R&D deal with JULY 2006
P&G delivers strong sales for 3Q 20052006; raises 2005-2006 outlook The Procter & Gamble Co (P&G) reported that net sales, which include the Gillette business, increased 21% to $17.25 bn for 3Q 2005-2006, ended 31 Mar 2006. Net earnings increased 37% to $2.21 bn during the quarter behind sales growth and significant margin improvement. P&G Beauty net sales increased by 6% to $5.16 bn and net earnings increased 10% to $738 M; Baby Care and Family Care net sales were $3.03 bn and net earnings increased 2% to $326 M; and P&G Household Care net sales increased 7% to $4.08 bn and earnings grew 13% to $545 M. Earnings before income taxes were $361 M during 3Q 2005-2006. For 2005-2006, the company expects its fourth consecutive year of base business growth at or above its longterm growth targets. Net sales are expected to grow 19-20% for 20052006. In India, P&G Hygiene and Healthcare Ltd has recorded an 81% increase in net profit at Rup 265.4 M on total income of Rup 1241 M for 3Q ended Mar 2006 (net profit of Rup 146.6 M on total income of Rup 1748.6 M in 3Q ended Mar 2005). The two results cannot be compared because the company has exited the detergent manufacturing business in India. 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 (3 May 2006) & Business Line, 29 Apr 2006, 13 (118), 3
Colgate reports good growth in 1Q 2006 For 1Q 2006, Colgate-Palmolive Co has reported turnover, including divestments, of $2870.6 M ($2743 M for 1Q 2005), with every operating division delivering volume increases. Excluding divestments, worldwide sales and unit volume grew 7.0%. Increased global pricing of 1.5% was offset by negative foreign exchange 6
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of 1.5%. Reported net income was $324.5 M, including restructuring and stock compensation charges. Excluding these items, net income increased 11% versus 1Q 2005 to $383.4 M. Operating profit as reported increased 5% versus 1Q 2005 to $517.5 M. Worldwide advertising supporting Colgate’s brands also rose 11% to $297.1 M, a first quarter record, with every operating division increasing their advertising spend. The oral, personal & homecare products segment recorded 1Q net sales of $2485.3 M, up from $2383.6 M in 1Q 2005, of which North America $617.6 M ($609.7 M), Latin America $692.7 M ($588.5 M), Europe/South Pacific $691.7 M ($720.2 M) and Greater Asia/Africa $483.3 M ($465.2 M). Operating profit for the segment was $561.4 M ($517.1 M), of which North America $132.3 M ($136.8 M), Latin America $211.2 M ($163.1 M), Europe/South Pacific $152.5 M ($154.4 M) and Greater Asia/Africa $65.4 M ($62.8 M). North America accounted for 22% of total sales. Sales as reported rose 1.5% while operating profit decreased 3%, due primarily to the year-on-year impact of the divestment of the North American detergent business. New personal and home care products contributing to growth include Ajax Ruby Red Grapefruit and Palmolive Oxy Plus dish liquids, Irish Spring MicroClean bar soap, and Softsoap Brand Kitchen Fresh Hands and Softsoap Brand Shea Butter liquid hand soaps. Latin America (24% of total sales) saw dollar sales grow 17.5% in the first quarter to a record level. Unit volume for the region grew 7.0%, with all 18 countries in the region contributing. Europe/South Pacific accounted for a further 24% of company sales, with volume up 7.5%, including divestments. Strong volume gains in the UK, Germany, Denmark, Spain, Italy, Ireland, Greece, Holland, Adria, Poland, the Baltic States, Hungary and Australia more than offset challenging economic conditions in France. Dollar sales in the region, as reported, declined 4.0% as strong unit volume growth was more than offset by 9.0% negative foreign exchange and negative pricing of 2.5%. Operating profit for the region decreased 1% in dollars as a result of the sharp
decrease in European currency value. In Greater Asia/Africa (17% of sales), strong volume gains were achieved in India, Vietnam, Hong Kong, Malaysia, Thailand, Russia, Ukraine, Turkey, Saudi Arabia, the Gulf States and South Africa. Sales and volume, as reported, increased 4.0% and 2.5%, respectively, reflecting the year-onyear impact of the divestment of the detergent business in Southeast Asia. Operating profit for the region increased 4% to a record level. Colgate strengthened its oral care leadership in the region led by toothpaste market share gains in Greater China, India, Hong Kong, Russia and Turkey. The company is celebrating the 200th anniversary of its founding this year. Press release from: Colgate-Palmolive Co, 300 Park Avenue, New York, NY 10022, USA. Tel: +1 212 310 2000. Website: http://www.colgate.com (26 Apr 2006)
HLL 4Q 2005-2006 net profit rises 76.9% Hindustan Lever Ltd (HLL) has posted a 76.9% increase in net profit (inclusive of exceptional items of Rup 1488.8 M) to Rup 4428.6 M on net sales of Rup 27.9805 bn for 4Q ended Mar 2006 (net profit of Rup 2502.5 M on net sales of Rup 25.0638 bn in 4Q ended Mar 2005). Exceptional items for 4Q 2005-2006 included profit of Rup 2.02 bn on the sale of the Nihar brand. HLL spent Rup 3033.4 M on advertising and promotions for 4Q 2005-2006 (Rup 2087.3 M in 4Q 2004-2005). The company’s home and personal care (HPC) business increased by 20% to Rup 20.6841 bn for 4Q 2005-2006 (Rup 17.2438 bn in 4Q 2004-2005). Laundry, shampoo and skincare products were the main growth drivers. Business Line, 29 Apr 2006, 13 (118), 1
COMPANY NEWS Air Products plans to enter the personal care market Air Products has reached a technology licence and R&D deal with JULY 2006