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Albert Heijn boycotts Unilever products
F O C U S
STATISTICS/ REVIEWS To Russia with love: it’s the multinationals’ new darling The Russian economy now appears to have stabilised, Consumer spending has increased so rapidly during 2000-2002 that not only are retail majors being attracted to the country but is also making it the fastest growing market for many of these multinationals. Among them are Nestle, Procter and Gamble, and L’Oreal. Procter and Gamble is market leader in Russia in such sectors as shampoo, toothpaste, and detergents. In 2001, Russia, Ukraine and Belarus moved up to number 13 in Procter and Gamble’s sales ranking, from number 17 in 2000. In only 5-10 years Russia could reach the top 5 in the company’s sales ranking. In 2000, L’Oreal’s sales in Russia increased 52%. In shampoo sales, five leading Western companies, L’Oreal, Procter and Gamble, Schwarzkopf-Henkel, Unilever, and Beiersdorf, control 63% of the market. There is still a long way to go for this economy, however. For example, annual per capita expenditure on Procter and Gamble products in Russia is only $4, compared with $77 in the US. But the potential for consumer sales is enormous; a figure illustrates the increasing trend in consumer spending in Russia and a table lists consumer majors’ expenditures in Russia: for example, Nestle spent more than $200 M upgrading 9 milk chocolate and food facilities. Business Week (European Edition), 16 Sep 2002, 3783 (1113), 20-21
MARKETS Kao half-year group operating profit to rise 5% to Yen 60 bn For Apr-Sep 2002, Kao Corp’s consolidated operating profit looks set to exceed the firm’s initial forecast of Yen 57.5 bn, and is now expected to reach Yen 60 bn, due to an unexpectedly small decrease in domestic sales prices of household 6
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products. Group sales are expected to rise 3% to Yen 436 bn, partly due to strong sales of laundry detergents. Nikkei Net, 5 Sep 2002 (Website: http://www.nni.nikkei.co.jp/)
Henkel expects profit to grow [1 table] Henkel (Germany), washing and cleaning chemicals producer, expects its operating profit to grow by at least 10% in 2002. Its 2002 proceeds are to total about €10 bn. In 2Q 2002 the company saw an EBIT profit of €168 M, up from 11.5% year-on-year. Its proceeds rose by 2.7% to €2.49 bn in the period. Henkel incorporates Henkel Central Eastern (Vienna, Austria), which operates on 15 markets including the Czech Republic. In 1H 2002 it saw proceeds of €400 M, up 8.5% from 1H 2001. Its EBIT grew by 7.4% to €37.1 M in 1H 2002. A table reports Henkel’s economic data for 1997-2001. Hospodarske Noviny Supplement (Ekonom), 5 Sep 2002, 46 (36), 69 (in Czech)
grow double digits behind the Clairol acquisition, strong performance by the health care business unit, and continued strength in developing markets. Procter & Gamble updates 1Q 2002-2003 performance, 5 Sep 2002, (The Procter & Gamble Co, 1 or 2, Procter & Gamble Plaza, Cincinnati, OH 45201, USA. Tel: +1 513 983 1100. Website: http://www.pg.com)
Procter and Gamble reports favourable results for 1H 2002 Procter and Gamble has indicated that its results for the quarter Jul-Sep 2002 are likely to be better than forecast following news that sales for the financial year ending in Jun 2002 have increased by just under 10%. Turnover for Jul 2002-Jun 2003 is forecast to increase by around 15% with profit per share increasing by between 4% and 6%. The company has allocated between $8 bn and $10 bn to fund any possible acquisitions during 2003 and 2004. La Tribune Desfosses, 10 Sep 2002, (24.465-2488), 13 (in French)
Henkel remains on course of expansion Via Austrian subsidiary Henkel Central Eastern Europe (CEE), German detergents producer Henkel is continuing to expand. Henkel CEE increased its sales 8.5% in 1H 2002 to €398.9 M and operating profits 7.4% to €37.1 M. Full-year sales growth is expected to approach double-digits. The company foresees growth prospects in the Ukraine, Bulgaria, Romania and Croatia in particular in the coming years. In 2001, Henkel CEE had sales of €746 M and pretax profits of €66 M. Austria accounted for 22% of sales in 1H 2002, Poland 27%, Hungary 15%, the Czech Republic 11%, and Slovenia 6%. Detergents account for 31% of sales, cosmetics 21%, adhesives 16%. Nachrichten fuer Aussenhandel, 30 Aug 2002, 65 (167), 5 (in German)
Procter & Gamble – 1Q 2002–2003 update The Procter & Gamble Co (P&G) is raising its sales and earnings/share growth guidance for 1Q ending Sep 2002 behind strong volume performance. Volume is expected to
Albert Heijn boycotts Unilever products On 20 Sep 2002, Albert Heijn, which is the largest supermarket chain in the Netherlands, began boycotting a number of Unilever products, including Omo, because it wants lower prices for specific products. Albert Heijn denies this is linked with growing market shares for its competitors Aldi and Lidl and says that it is aimed at getting the best price for its customers. It claims that the boycott will not make negotiations with Unilever more difficult. Het Financieele Dagblad, 20 Sep 2002 (Website: http://www.fd.nl/) (in Dutch)
Surfactants market stable Despite the difficulties faced by the chemical industry in recent years, surfactant producers have on average been able to achieve positive results, aside from regional variations. In W Europe, the mature household cleaners and toiletries markets have grown only hesitantly. Compensation was provided by regions with strong population growth. However, in view NOVEMBER 2002
STATISTICS/ REVIEWS To Russia with love: it’s the multinationals’ new darling The Russian economy now appears to have stabilised, Consumer spending has increased so rapidly during 2000-2002 that not only are retail majors being attracted to the country but is also making it the fastest growing market for many of these multinationals. Among them are Nestle, Procter and Gamble, and L’Oreal. Procter and Gamble is market leader in Russia in such sectors as shampoo, toothpaste, and detergents. In 2001, Russia, Ukraine and Belarus moved up to number 13 in Procter and Gamble’s sales ranking, from number 17 in 2000. In only 5-10 years Russia could reach the top 5 in the company’s sales ranking. In 2000, L’Oreal’s sales in Russia increased 52%. In shampoo sales, five leading Western companies, L’Oreal, Procter and Gamble, Schwarzkopf-Henkel, Unilever, and Beiersdorf, control 63% of the market. There is still a long way to go for this economy, however. For example, annual per capita expenditure on Procter and Gamble products in Russia is only $4, compared with $77 in the US. But the potential for consumer sales is enormous; a figure illustrates the increasing trend in consumer spending in Russia and a table lists consumer majors’ expenditures in Russia: for example, Nestle spent more than $200 M upgrading 9 milk chocolate and food facilities. Business Week (European Edition), 16 Sep 2002, 3783 (1113), 20-21
MARKETS Kao half-year group operating profit to rise 5% to Yen 60 bn For Apr-Sep 2002, Kao Corp’s consolidated operating profit looks set to exceed the firm’s initial forecast of Yen 57.5 bn, and is now expected to reach Yen 60 bn, due to an unexpectedly small decrease in domestic sales prices of household 6
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S U R FA C TA N T S
products. Group sales are expected to rise 3% to Yen 436 bn, partly due to strong sales of laundry detergents. Nikkei Net, 5 Sep 2002 (Website: http://www.nni.nikkei.co.jp/)
Henkel expects profit to grow [1 table] Henkel (Germany), washing and cleaning chemicals producer, expects its operating profit to grow by at least 10% in 2002. Its 2002 proceeds are to total about €10 bn. In 2Q 2002 the company saw an EBIT profit of €168 M, up from 11.5% year-on-year. Its proceeds rose by 2.7% to €2.49 bn in the period. Henkel incorporates Henkel Central Eastern (Vienna, Austria), which operates on 15 markets including the Czech Republic. In 1H 2002 it saw proceeds of €400 M, up 8.5% from 1H 2001. Its EBIT grew by 7.4% to €37.1 M in 1H 2002. A table reports Henkel’s economic data for 1997-2001. Hospodarske Noviny Supplement (Ekonom), 5 Sep 2002, 46 (36), 69 (in Czech)
grow double digits behind the Clairol acquisition, strong performance by the health care business unit, and continued strength in developing markets. Procter & Gamble updates 1Q 2002-2003 performance, 5 Sep 2002, (The Procter & Gamble Co, 1 or 2, Procter & Gamble Plaza, Cincinnati, OH 45201, USA. Tel: +1 513 983 1100. Website: http://www.pg.com)
Procter and Gamble reports favourable results for 1H 2002 Procter and Gamble has indicated that its results for the quarter Jul-Sep 2002 are likely to be better than forecast following news that sales for the financial year ending in Jun 2002 have increased by just under 10%. Turnover for Jul 2002-Jun 2003 is forecast to increase by around 15% with profit per share increasing by between 4% and 6%. The company has allocated between $8 bn and $10 bn to fund any possible acquisitions during 2003 and 2004. La Tribune Desfosses, 10 Sep 2002, (24.465-2488), 13 (in French)
Henkel remains on course of expansion Via Austrian subsidiary Henkel Central Eastern Europe (CEE), German detergents producer Henkel is continuing to expand. Henkel CEE increased its sales 8.5% in 1H 2002 to €398.9 M and operating profits 7.4% to €37.1 M. Full-year sales growth is expected to approach double-digits. The company foresees growth prospects in the Ukraine, Bulgaria, Romania and Croatia in particular in the coming years. In 2001, Henkel CEE had sales of €746 M and pretax profits of €66 M. Austria accounted for 22% of sales in 1H 2002, Poland 27%, Hungary 15%, the Czech Republic 11%, and Slovenia 6%. Detergents account for 31% of sales, cosmetics 21%, adhesives 16%. Nachrichten fuer Aussenhandel, 30 Aug 2002, 65 (167), 5 (in German)
Procter & Gamble – 1Q 2002–2003 update The Procter & Gamble Co (P&G) is raising its sales and earnings/share growth guidance for 1Q ending Sep 2002 behind strong volume performance. Volume is expected to
Albert Heijn boycotts Unilever products On 20 Sep 2002, Albert Heijn, which is the largest supermarket chain in the Netherlands, began boycotting a number of Unilever products, including Omo, because it wants lower prices for specific products. Albert Heijn denies this is linked with growing market shares for its competitors Aldi and Lidl and says that it is aimed at getting the best price for its customers. It claims that the boycott will not make negotiations with Unilever more difficult. Het Financieele Dagblad, 20 Sep 2002 (Website: http://www.fd.nl/) (in Dutch)
Surfactants market stable Despite the difficulties faced by the chemical industry in recent years, surfactant producers have on average been able to achieve positive results, aside from regional variations. In W Europe, the mature household cleaners and toiletries markets have grown only hesitantly. Compensation was provided by regions with strong population growth. However, in view NOVEMBER 2002