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Kao reports business results for the fiscal year ended 31 Mar 2008: consumer products
F O C US Garment Care benefited from the rollout of Woolite Color and from higher investment. Excluding the private label business, where the level of activity was reduced in the year, the branded business grew 8%. The Surface Care segment posted fullyear net revenues of £951 M in 2007 (£909 M for its fiscal 2006) and capital expenditure of £26 M (£17 M). Net revenues grew 8% principally due to the launch of Cillit Bang Grease & Floor, and to strong growth for Lysol in North America and Veja in Brazil. Harpic Lavatory Care net revenues were also stronger due to the success of Harpic Power Plus and Harpic Max. Reckitt Benckiser’s Dishwashing segment reported net revenues of £616 M (£591 M for its fiscal 2006) and capital expenditure of £16 M (£11 M). Net revenues increased 5% due to the success of Finish Quantum and Finish All in 1 in Europe and Electrasol 3in1 tablets in North America. The company’s other two core categories are Home Care (air fresheners and pest control products) and Health & Personal Care, which includes the former BHI brands. In Europe, Reckitt Benckiser reported 2007 net revenues of £2813 M (+7% on its fiscal 2006), operating profits of £681 M (+11%), and capital expenditure of £88 M (£50 M). The extra month of BHI in 2007 contributed 1% to this growth rate while business disposals deducted 1%. Growth was broad-based across all five core categories. Fabric Care grew due to the success of Vanish Oxi Action Multi and Crystal White, and Calgon Water Softener, as mentioned above. Surface Care growth benefited from the launch of Cillit Bang Grease & Floor and from growth for Harpic Power Plus and Harpic Max In Toilet Bowl device (ITB). In Automatic Dishwashing, the key drivers were Finish Quantum, Finish All in 1 and Finish Turbo Dry. Full-year operating margins were 60bps ahead of last year at 24.2% due to higher gross margins and BHI synergies, partially offset by higher marketing investment to support new products. The company’s North America & Australia segment reported 2007 net revenues of £1488 M (+11% on its fiscal 2006), operating profits of £379 M (+16%), and capital expenditure of £23 M (£17 M). Fullyear growth in Household came JULY 2008
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particularly from Surface Care, Automatic Dishwashing and Home Care. Surface Care growth was driven by Lysol in NA and by Harpic in ANZ. Automatic Dishwashing increased as a result of the continuing success of Electrasol 3in1 monodose tablets. Full-year operating margins were 130bps higher at 25.5%. Finally, the Developing Markets segment reported net revenues of £968 M (+15% on its fiscal 2006), operating profits of £130 M (+43%), and capital expenditure of £22 M (£21 M). Strong revenue growth was experienced across all regions of Asia, Latin America and Africa Middle East. The major contributors to growth were Fabric Care, Surface Care, Home Care and Health & Personal Care. In Fabric Care, the growth came from Fabric Treatment, mainly driven by initiatives on Vanish to increase category penetration. In Surface Care, the main drivers were Harpic Power Plus lavatory cleaner, supported by higher investment, and Veja in Brazil. In Health & Personal Care, the Dettol personal care range grew strongly, benefiting from the Herbal range extension and additional investment. Reckitt Benckiser Annual Report and Financial Statements 2007, 13 Feb 2008, 4,7,8,33 (Reckitt Benckiser plc, 103-105 Bath Road, Slough, SL1 3UH, UK. Tel: +44 1753 217800. Fax: +44 1753 217899. Website: http://www.reckittbenckiser.com)
Kao reports business results for the fiscal year ended 31 Mar 2008: consumer products Kao Corp’s total net sales from its consumer products business rose to Yen 1,093,871 M in FY 2007 (ended 31 Mar 2008) from Yen 1,037,411 M in FY 2006 (ended 31 Mar 2007). Operating income fell to Yen 96,500 M from Yen 99,470 M, while capital expenditure also dropped to Yen 34,690 M from Yen 51,936 M. The beauty care business posted net sales of Yen 627,914 M; operating income of Yen 27,283 M; and capital expenditure of Yen 18,478 M. The fabric and home care business posted net sales of Yen 274,656 M; operating income of Yen 56,061 M; and capital expenditure of Yen 8394 M. The segment’s profits were strongly affected by rising prices for raw materials, mainly natural oils and fats and petrochemicals, although
new products contributed to sales growth in Japan and overseas. Kao Results FY 2007, 23 Apr 2008, 6-9 (Kao Corp, 114-10 Nihonbashi Kayabacho, Chuo-ku, Tokyo 1038210, Japan. Tel: +81 3 3660 7111. Website: http://www.kao.co.jp/en/)
COMPANY NEWS Growing specialities accelerate Tosoh transformation Projections for the year ended 31 Mar 2008 (fiscal 2007) indicate that since 2002 Tosoh has tripled its profits to Yen 590 bn, with sales doubled to Yen 840 bn. The financial growth of the company has been achieved via a shift away from commodity products to speciality products aimed at niche markets. Substantial growth has been achieved in the bioscience, organic chemical, speciality material, electronic material, water treatment and isocyanates sectors. Tosoh is increasing capacity for ethyleneamines at the Nanyo Complex in Yamahuchi, Japan. It also plans to complete construction work during 2008 on a zeolite facility. Tosoh is aiming to increase its sales beyond the Yen 1 tn mark. Chemical Week, 12/19 May 2008, 170 (Japan Country Focus), 27
Carlyle buys Greek firm Neochimiki The investment fund Carlyle has acquired almost 74% of the Greek firm Neochimiki LV Lavrentiadis for €749 M. It plans to launch a bid for the remaining capital. Neochimiki distributes raw materials for the chemical market in Greece and SE Europe. It also produces detergents. Chimie Pharma Hebdo, 19 May 2008, (423), 11 (in French)
Ter Hell takes over speciality company Simon & Werner, a distributor of speciality chemicals – pigments, dyes, surfactants and preservatives in particular – has been taken over by Ter Hell Group. Simon and Werner has annual sales of €20 M and employs 40. Ter Hell & Co GmbH employs 80 and has sales of €117 M. Chemische Rundschau, 9 May 2008, (5), 9 (in German)
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particularly from Surface Care, Automatic Dishwashing and Home Care. Surface Care growth was driven by Lysol in NA and by Harpic in ANZ. Automatic Dishwashing increased as a result of the continuing success of Electrasol 3in1 monodose tablets. Full-year operating margins were 130bps higher at 25.5%. Finally, the Developing Markets segment reported net revenues of £968 M (+15% on its fiscal 2006), operating profits of £130 M (+43%), and capital expenditure of £22 M (£21 M). Strong revenue growth was experienced across all regions of Asia, Latin America and Africa Middle East. The major contributors to growth were Fabric Care, Surface Care, Home Care and Health & Personal Care. In Fabric Care, the growth came from Fabric Treatment, mainly driven by initiatives on Vanish to increase category penetration. In Surface Care, the main drivers were Harpic Power Plus lavatory cleaner, supported by higher investment, and Veja in Brazil. In Health & Personal Care, the Dettol personal care range grew strongly, benefiting from the Herbal range extension and additional investment. Reckitt Benckiser Annual Report and Financial Statements 2007, 13 Feb 2008, 4,7,8,33 (Reckitt Benckiser plc, 103-105 Bath Road, Slough, SL1 3UH, UK. Tel: +44 1753 217800. Fax: +44 1753 217899. Website: http://www.reckittbenckiser.com)
Kao reports business results for the fiscal year ended 31 Mar 2008: consumer products Kao Corp’s total net sales from its consumer products business rose to Yen 1,093,871 M in FY 2007 (ended 31 Mar 2008) from Yen 1,037,411 M in FY 2006 (ended 31 Mar 2007). Operating income fell to Yen 96,500 M from Yen 99,470 M, while capital expenditure also dropped to Yen 34,690 M from Yen 51,936 M. The beauty care business posted net sales of Yen 627,914 M; operating income of Yen 27,283 M; and capital expenditure of Yen 18,478 M. The fabric and home care business posted net sales of Yen 274,656 M; operating income of Yen 56,061 M; and capital expenditure of Yen 8394 M. The segment’s profits were strongly affected by rising prices for raw materials, mainly natural oils and fats and petrochemicals, although
new products contributed to sales growth in Japan and overseas. Kao Results FY 2007, 23 Apr 2008, 6-9 (Kao Corp, 114-10 Nihonbashi Kayabacho, Chuo-ku, Tokyo 1038210, Japan. Tel: +81 3 3660 7111. Website: http://www.kao.co.jp/en/)
COMPANY NEWS Growing specialities accelerate Tosoh transformation Projections for the year ended 31 Mar 2008 (fiscal 2007) indicate that since 2002 Tosoh has tripled its profits to Yen 590 bn, with sales doubled to Yen 840 bn. The financial growth of the company has been achieved via a shift away from commodity products to speciality products aimed at niche markets. Substantial growth has been achieved in the bioscience, organic chemical, speciality material, electronic material, water treatment and isocyanates sectors. Tosoh is increasing capacity for ethyleneamines at the Nanyo Complex in Yamahuchi, Japan. It also plans to complete construction work during 2008 on a zeolite facility. Tosoh is aiming to increase its sales beyond the Yen 1 tn mark. Chemical Week, 12/19 May 2008, 170 (Japan Country Focus), 27
Carlyle buys Greek firm Neochimiki The investment fund Carlyle has acquired almost 74% of the Greek firm Neochimiki LV Lavrentiadis for €749 M. It plans to launch a bid for the remaining capital. Neochimiki distributes raw materials for the chemical market in Greece and SE Europe. It also produces detergents. Chimie Pharma Hebdo, 19 May 2008, (423), 11 (in French)
Ter Hell takes over speciality company Simon & Werner, a distributor of speciality chemicals – pigments, dyes, surfactants and preservatives in particular – has been taken over by Ter Hell Group. Simon and Werner has annual sales of €20 M and employs 40. Ter Hell & Co GmbH employs 80 and has sales of €117 M. Chemische Rundschau, 9 May 2008, (5), 9 (in German)
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