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Onwards & upwards in Poland
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MARKET REVIEWS Growth spurt slows in Central and Eastern Europe The personal care industry in Central and Eastern Europe is growing slowly, with major brands dominating the market. Romania's demand for personal care products reached €771 M ($823.19 M) in 2015. Euromonitor International stated that the largest contributor in the market was toiletries (26.8%), followed by fragrances and perfumes (24%). Colour and sun care products increased by 11.1% and 11.3%, respectively. The top five companies that dominated the country's personal care market are Procter & Gamble (P&G) (11.1%), Avon Products (10.6%), L'Oreal (9%), Beiersdorf (8.3%) and Unilever (5.2%). The fastest-growing segment in Romania's personal care sector is skin care products with growth in sales of 5.3% in 2015. In the Czech Republic, the personal care market increased by 0.7% in 2015 to CEK 25.5 bn ($1 bn). Some of the top firms in the country's personal care market are Avon Products, Nivea, L'Oreal Paris, Oriflame and Schwarzkopf. The body and bath products segment is the biggest contributor to the personal care sector in the Czech Republic, having sales of CEK 2.3 bn ($95.32 M), representing 13 M L of products sold in the market with a 1% increase year on year in sales value and volume. In Croatia, the personal care market was dominated by P&G (12.8%), followed by Beiersdorf (11.4%) and L'Oreal (11.1%). The toiletries segment is the largest contributor in the market. In Serbia, Beiersdorf dominated the personal care market with an 11.8% market share, followed by L'Oreal (10.9%), Henkel (9.6%), P&G (9.2%) and Avon (7%). Euromonitor reported that hair care had the biggest share in personal care sales in the country in 2015 at €83.30 M. In Hungary, the personal care market was led by L'Oreal (10.8%), closely followed by Unilever (10.4%) and P&G (10%). Beauty and personal care products dominated the market for 2015 at €760.2 M, while the skincare segment was valued at €144.3 M. In the three Baltic States, namely Latvia, Estonia and Lithuania, Estonia had the highest growth followed
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by Latvia and Lithuania. The Estonian cosmetics and personal care market is expected to reach a value of €145.6 M, according to Statistica. The Lithuanian and Latvian cosmetics and personal care markets are predicted to be valued at €200.3 M and €133.5 M, respectively. The Lithuanian market was led by L'Oreal Baltic with a 17% retail value share. In Ukraine, the total worth of the personal care market was $1.38 bn for 2015, up from $1.1 bn in 2014. The bath and shower products segment was the greatest contributor at $112.2 M. Original Source: SPC, Soap, Perfumery and Cosmetics, Mar 2017, 90 (3), 30-32 (Website: http://www.cosmeticsbusiness.com/) © HPCi Media Ltd 2017
Onwards & upwards in Poland The beauty and personal care market in Poland has increased by 1.9% in US dollars for 2016 or 4.4% in zlotys, and is expected to grow further for the next five years. Euromonitor International reported that Poland spent around $3.89 bn on personal care and cosmetics products in 2016, with cosmetics sales reaching nearly 3% in the country. Skin care products led the Polish market with a value of $768 M in 2016. This was followed by hair care and male grooming markets with values of $702 M and $624 M, respectively. Store-based retailing represented more than 80% of the country's cosmetics and personal care market in 2015, while internet sales held an 8.5% share. L'Oreal Polska had an increase in sales of 34.3% year on year for 2015. The Polish personal care market is dominated by L'Oreal, Coty, Unilever, Avon Products and Procter & Gamble. Original Source: SPC, Soap, Perfumery and Cosmetics, Mar 2017, 90 (3), 35 (Website: http://www.cosmeticsbusiness.com/) © HPCi Media Ltd 2017
COMPANY RESULTS Unilever’s sales up thanks to price increases Increases in prices and positive currency effects have meant a clear rise in sales for Unilever in 1Q 2017. The company has also increased its dividend for the quarter by 12%. Sales
rose 6.1% to €13.3 bn. There was a positive currency effect of 2.4%. Adjusted growth was 2.9%. Prices were up 3% but volumes fell 0.1%. Sales in emerging markets grew 6.1% but those in developed markets fell 1.5%. The company considers it is well on its way to achieving its full-year growth target of 3-5%. In addition to a higher dividend, there will be a €5 bn share repurchase programme. Having defended itself against a takeover attempt by Kraft Heinz, Unilever recently carried out a strategic review, as a result of which it has ordered an extensive programme of change. The company has announced that it intends to pay out more to its shareholders and is targeting €2 bn in additional savings. It also aims to increase its profitability by 2020, when operating profits are to reach 20% of sales (16.4% in 2016). The main measures to achieve this cost-savings are a proposed sale or spin-off of the spreads business, and the merger of the food and refreshments businesses into one segment in order to lower costs and speed up growth. Resulting restructuring costs are put at around €3.5 bn. The company's double structure as both a Dutch and British share company will also be reviewed. Original Source: Chemie Aktuell, 20 & 6 Apr 2017, (Website: http://www.maerkte-weltweit. de) (in German) © MBM Martin Brueckner Medien GmbH 2017. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 6 Apr 2017, (Website: http://www.handelsblatt. com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2017
Stepan reports record earnings in 1Q 2017 For the first quarter of 2017, Stepan Co reported net income of $31.9 M, up 14% from $27.9 M the previous year. Operating income was $46.1 M, up 3% year on year. Sales for the period were up 5% to $468.3 M, with higher selling prices (due to higher raw material costs) offsetting a 4% drop in volumes and negative currency effects. Operating income for the company's Surfactant segment rose almost 3% year on year, from $37.2 million to $38.2 M in 1Q 2017, which was attributed primarily to lower manufacturing costs, mainly as a result of plant closures in Canada and Brazil. Decommissioning costs related to the Canadian plant closure resulted in after-tax expenses of $0.6 M. Sales were up 4% to $322.6 M, aided by a 12% increase in selling prices, although June 2017
MARKET REVIEWS Growth spurt slows in Central and Eastern Europe The personal care industry in Central and Eastern Europe is growing slowly, with major brands dominating the market. Romania's demand for personal care products reached €771 M ($823.19 M) in 2015. Euromonitor International stated that the largest contributor in the market was toiletries (26.8%), followed by fragrances and perfumes (24%). Colour and sun care products increased by 11.1% and 11.3%, respectively. The top five companies that dominated the country's personal care market are Procter & Gamble (P&G) (11.1%), Avon Products (10.6%), L'Oreal (9%), Beiersdorf (8.3%) and Unilever (5.2%). The fastest-growing segment in Romania's personal care sector is skin care products with growth in sales of 5.3% in 2015. In the Czech Republic, the personal care market increased by 0.7% in 2015 to CEK 25.5 bn ($1 bn). Some of the top firms in the country's personal care market are Avon Products, Nivea, L'Oreal Paris, Oriflame and Schwarzkopf. The body and bath products segment is the biggest contributor to the personal care sector in the Czech Republic, having sales of CEK 2.3 bn ($95.32 M), representing 13 M L of products sold in the market with a 1% increase year on year in sales value and volume. In Croatia, the personal care market was dominated by P&G (12.8%), followed by Beiersdorf (11.4%) and L'Oreal (11.1%). The toiletries segment is the largest contributor in the market. In Serbia, Beiersdorf dominated the personal care market with an 11.8% market share, followed by L'Oreal (10.9%), Henkel (9.6%), P&G (9.2%) and Avon (7%). Euromonitor reported that hair care had the biggest share in personal care sales in the country in 2015 at €83.30 M. In Hungary, the personal care market was led by L'Oreal (10.8%), closely followed by Unilever (10.4%) and P&G (10%). Beauty and personal care products dominated the market for 2015 at €760.2 M, while the skincare segment was valued at €144.3 M. In the three Baltic States, namely Latvia, Estonia and Lithuania, Estonia had the highest growth followed
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by Latvia and Lithuania. The Estonian cosmetics and personal care market is expected to reach a value of €145.6 M, according to Statistica. The Lithuanian and Latvian cosmetics and personal care markets are predicted to be valued at €200.3 M and €133.5 M, respectively. The Lithuanian market was led by L'Oreal Baltic with a 17% retail value share. In Ukraine, the total worth of the personal care market was $1.38 bn for 2015, up from $1.1 bn in 2014. The bath and shower products segment was the greatest contributor at $112.2 M. Original Source: SPC, Soap, Perfumery and Cosmetics, Mar 2017, 90 (3), 30-32 (Website: http://www.cosmeticsbusiness.com/) © HPCi Media Ltd 2017
Onwards & upwards in Poland The beauty and personal care market in Poland has increased by 1.9% in US dollars for 2016 or 4.4% in zlotys, and is expected to grow further for the next five years. Euromonitor International reported that Poland spent around $3.89 bn on personal care and cosmetics products in 2016, with cosmetics sales reaching nearly 3% in the country. Skin care products led the Polish market with a value of $768 M in 2016. This was followed by hair care and male grooming markets with values of $702 M and $624 M, respectively. Store-based retailing represented more than 80% of the country's cosmetics and personal care market in 2015, while internet sales held an 8.5% share. L'Oreal Polska had an increase in sales of 34.3% year on year for 2015. The Polish personal care market is dominated by L'Oreal, Coty, Unilever, Avon Products and Procter & Gamble. Original Source: SPC, Soap, Perfumery and Cosmetics, Mar 2017, 90 (3), 35 (Website: http://www.cosmeticsbusiness.com/) © HPCi Media Ltd 2017
COMPANY RESULTS Unilever’s sales up thanks to price increases Increases in prices and positive currency effects have meant a clear rise in sales for Unilever in 1Q 2017. The company has also increased its dividend for the quarter by 12%. Sales
rose 6.1% to €13.3 bn. There was a positive currency effect of 2.4%. Adjusted growth was 2.9%. Prices were up 3% but volumes fell 0.1%. Sales in emerging markets grew 6.1% but those in developed markets fell 1.5%. The company considers it is well on its way to achieving its full-year growth target of 3-5%. In addition to a higher dividend, there will be a €5 bn share repurchase programme. Having defended itself against a takeover attempt by Kraft Heinz, Unilever recently carried out a strategic review, as a result of which it has ordered an extensive programme of change. The company has announced that it intends to pay out more to its shareholders and is targeting €2 bn in additional savings. It also aims to increase its profitability by 2020, when operating profits are to reach 20% of sales (16.4% in 2016). The main measures to achieve this cost-savings are a proposed sale or spin-off of the spreads business, and the merger of the food and refreshments businesses into one segment in order to lower costs and speed up growth. Resulting restructuring costs are put at around €3.5 bn. The company's double structure as both a Dutch and British share company will also be reviewed. Original Source: Chemie Aktuell, 20 & 6 Apr 2017, (Website: http://www.maerkte-weltweit. de) (in German) © MBM Martin Brueckner Medien GmbH 2017. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 6 Apr 2017, (Website: http://www.handelsblatt. com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2017
Stepan reports record earnings in 1Q 2017 For the first quarter of 2017, Stepan Co reported net income of $31.9 M, up 14% from $27.9 M the previous year. Operating income was $46.1 M, up 3% year on year. Sales for the period were up 5% to $468.3 M, with higher selling prices (due to higher raw material costs) offsetting a 4% drop in volumes and negative currency effects. Operating income for the company's Surfactant segment rose almost 3% year on year, from $37.2 million to $38.2 M in 1Q 2017, which was attributed primarily to lower manufacturing costs, mainly as a result of plant closures in Canada and Brazil. Decommissioning costs related to the Canadian plant closure resulted in after-tax expenses of $0.6 M. Sales were up 4% to $322.6 M, aided by a 12% increase in selling prices, although June 2017