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Stepan reports 63% 1Q earnings growth
FOCUS is 610 pages long and prices start from €2500 for a single hard copy. Original Source: Ceresana, 8 Apr 2015 (http:// www.ceresana.com) © Ceresana 2015
MARKET REVIEWS Distribution strategies and adoption issues for green cosmetics According to research conducted by Organic Monitor, in spite of high consumer interest, most sustainable products have low market share. For instance, natural products represent just 3% of personal care product sales in Europe. Organic foods generate 4% of total food sales in North America; the market share of ethical textiles and green household cleaning products is even lower in these regions, below 2%. A major factor behind the low market share is that most green brands are focusing on specialist outlets. Few natural personal care products are in mass market retailers, whereas that channel generates more than a third of cosmetic and toiletry sales in the USA. Brands are advised to follow pioneers such as Green & Black's and Aveda in reaching out to mainstream consumers. Aveda has been successful in the natural personal care industry because of its distribution strategy. Aveda is positioned as a professional hair care brand in salons. Organic Monitor research shows it is the premier brand of natural personal care products, with distribution in > 7000 salons. Ecover has also taken up a similar position in the green household cleaning products market because of extensive distribution. Alverde of DM drugstores has also taken up high market share to become the leading private label of natural personal care products in Europe. When it comes to green cosmetic ingredients, supply instability, traceability and price volatility are factors hindering their adoption, according to Organic Monitor. However, more regulations are being put in place to encourage the use of green chemicals. For example, legislation is being introduced in 3 US states to ban the production and sale of personal care products with microplastic exfoliants due to their adverse effect on marine ecosystems.
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Unilever and L'Oreal are working on eliminating polyethylene beads in their formulations using alternatives derived from wood cellulose, corn, natural minerals and jojoba. Concerns about traceability and the wider price gap between synthetic and natural ingredients due to the recent drop in petroleum feedstock prices are expected to keep a mixed environment on the adoption of green chemicals. Original Source: Organic Monitor, 2015. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 29 Apr 2015, (Website: http://www.specialchem4cosmetics. com). Original Source: HPC, Household and Personal Care Today, May-Jun 2015, 10 (3), 6 (Website: http://hpc-today.teknoscienze.com) © Teknoscienze Srl 2015
COMPANY RESULTS Huntsman reports strong 1Q 2015 earnings in differentiated businesses Huntsman Corp has reported 1Q 2015 results with revenues of $2589 M and adjusted EBITDA of $285 M. EBITDA from differentiated businesses, which include MDI urethanes, performance products, advanced materials and textile effects, improved by approximately $30 M compared to 1Q 2014. Adjusted EBITDA was $329 M in 1Q 2014. The decrease was primarily attributable to an estimated adjusted EBITDA impact of approximately $60 M from a completed planned maintenance outage at Huntsman's PO/MTBE facility in Port Neches, TX, USA. The company experienced some delays in the restart of the facility during Apr 2015. The stronger US dollar also reduced adjusted EBITDA in 1Q 2015 by an estimated $17 M compared to the 1Q 2014 level. Net income attributable to Huntsman was $5 M in 1Q 2015 compared to net income of $54 M a year earlier. Original Source: Huntsman, 30 Apr 2015 (Website: http://www.huntsman.com/) © Huntsman International LLC 2015
Stepan reports 63% 1Q earnings growth For 1Q 2015, Stepan Co reported net income of $21.3 M, up 63% from $13.0 M the previous year. Higher
volumes and margins as well as actions taken in 2014 to improve product mix, reduce cost and improve efficiency all contributed to the improvement, the company said. Net sales declined 4% to $460.5 M from $477.4 M in 1Q 2014, with a 6% decline due to foreign currency effects because of the strength of the US dollar partially offset by improved volumes. Stepan's surfactants segment delivered record quarterly operating income of $33.8 million, up 84% year on year. Income in all four regions was higher, benefiting from operational improvements, an improved product and end-market mix, as well as falling raw material costs. Sales for the segment were $330.6 M, down 2% from 1Q 2014. Currency effects decreased sales by $21.2 M, but sales volumes rose 2%. Strong volume growth outside North America was partially offset by lower North American commodity laundry volumes. The quarter benefited from higher sales through distribution partners, an enhanced oil recovery pilot and growing volumes of the company's environmentally advantaged solvent for the agricultural market. For the rest of 2015, the company expects continued profit gains from improved operations and increased geographic presence particularly in the functional markets for surfactants. Underutilization of its North American anionic capacity remains 'an opportunity and a vulnerability' that will be addressed in 2015, Stepan said. Consumer product volumes are expected to increase in Latin America, supported by the planned plant acquisition in Brazil, ['Focus on Surfactants', Sep 2014], delayed from late 2014 but anticipated to close in 2Q 2015 at the time that the financial results were published. Original Source: Stepan Co, 28 Apr 2015 (Website: http://www.stepan.com) © Stepan Company 2015
Henkel reports good start to fiscal 2015 In 1Q 2015, Henkel's sales rose significantly by 12.7%, reaching a new quarterly high of €4430 M. Adjusted for positive foreign exchange effects of 5.8%, sales improved by 6.9%. Organically (ie, after adjusting for exchange rate and portfolio effects), sales rose by 3.6%. The Laundry & Home Care business unit recorded July 2015
MARKET REVIEWS Distribution strategies and adoption issues for green cosmetics According to research conducted by Organic Monitor, in spite of high consumer interest, most sustainable products have low market share. For instance, natural products represent just 3% of personal care product sales in Europe. Organic foods generate 4% of total food sales in North America; the market share of ethical textiles and green household cleaning products is even lower in these regions, below 2%. A major factor behind the low market share is that most green brands are focusing on specialist outlets. Few natural personal care products are in mass market retailers, whereas that channel generates more than a third of cosmetic and toiletry sales in the USA. Brands are advised to follow pioneers such as Green & Black's and Aveda in reaching out to mainstream consumers. Aveda has been successful in the natural personal care industry because of its distribution strategy. Aveda is positioned as a professional hair care brand in salons. Organic Monitor research shows it is the premier brand of natural personal care products, with distribution in > 7000 salons. Ecover has also taken up a similar position in the green household cleaning products market because of extensive distribution. Alverde of DM drugstores has also taken up high market share to become the leading private label of natural personal care products in Europe. When it comes to green cosmetic ingredients, supply instability, traceability and price volatility are factors hindering their adoption, according to Organic Monitor. However, more regulations are being put in place to encourage the use of green chemicals. For example, legislation is being introduced in 3 US states to ban the production and sale of personal care products with microplastic exfoliants due to their adverse effect on marine ecosystems.
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Unilever and L'Oreal are working on eliminating polyethylene beads in their formulations using alternatives derived from wood cellulose, corn, natural minerals and jojoba. Concerns about traceability and the wider price gap between synthetic and natural ingredients due to the recent drop in petroleum feedstock prices are expected to keep a mixed environment on the adoption of green chemicals. Original Source: Organic Monitor, 2015. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 29 Apr 2015, (Website: http://www.specialchem4cosmetics. com). Original Source: HPC, Household and Personal Care Today, May-Jun 2015, 10 (3), 6 (Website: http://hpc-today.teknoscienze.com) © Teknoscienze Srl 2015
COMPANY RESULTS Huntsman reports strong 1Q 2015 earnings in differentiated businesses Huntsman Corp has reported 1Q 2015 results with revenues of $2589 M and adjusted EBITDA of $285 M. EBITDA from differentiated businesses, which include MDI urethanes, performance products, advanced materials and textile effects, improved by approximately $30 M compared to 1Q 2014. Adjusted EBITDA was $329 M in 1Q 2014. The decrease was primarily attributable to an estimated adjusted EBITDA impact of approximately $60 M from a completed planned maintenance outage at Huntsman's PO/MTBE facility in Port Neches, TX, USA. The company experienced some delays in the restart of the facility during Apr 2015. The stronger US dollar also reduced adjusted EBITDA in 1Q 2015 by an estimated $17 M compared to the 1Q 2014 level. Net income attributable to Huntsman was $5 M in 1Q 2015 compared to net income of $54 M a year earlier. Original Source: Huntsman, 30 Apr 2015 (Website: http://www.huntsman.com/) © Huntsman International LLC 2015
Stepan reports 63% 1Q earnings growth For 1Q 2015, Stepan Co reported net income of $21.3 M, up 63% from $13.0 M the previous year. Higher
volumes and margins as well as actions taken in 2014 to improve product mix, reduce cost and improve efficiency all contributed to the improvement, the company said. Net sales declined 4% to $460.5 M from $477.4 M in 1Q 2014, with a 6% decline due to foreign currency effects because of the strength of the US dollar partially offset by improved volumes. Stepan's surfactants segment delivered record quarterly operating income of $33.8 million, up 84% year on year. Income in all four regions was higher, benefiting from operational improvements, an improved product and end-market mix, as well as falling raw material costs. Sales for the segment were $330.6 M, down 2% from 1Q 2014. Currency effects decreased sales by $21.2 M, but sales volumes rose 2%. Strong volume growth outside North America was partially offset by lower North American commodity laundry volumes. The quarter benefited from higher sales through distribution partners, an enhanced oil recovery pilot and growing volumes of the company's environmentally advantaged solvent for the agricultural market. For the rest of 2015, the company expects continued profit gains from improved operations and increased geographic presence particularly in the functional markets for surfactants. Underutilization of its North American anionic capacity remains 'an opportunity and a vulnerability' that will be addressed in 2015, Stepan said. Consumer product volumes are expected to increase in Latin America, supported by the planned plant acquisition in Brazil, ['Focus on Surfactants', Sep 2014], delayed from late 2014 but anticipated to close in 2Q 2015 at the time that the financial results were published. Original Source: Stepan Co, 28 Apr 2015 (Website: http://www.stepan.com) © Stepan Company 2015
Henkel reports good start to fiscal 2015 In 1Q 2015, Henkel's sales rose significantly by 12.7%, reaching a new quarterly high of €4430 M. Adjusted for positive foreign exchange effects of 5.8%, sales improved by 6.9%. Organically (ie, after adjusting for exchange rate and portfolio effects), sales rose by 3.6%. The Laundry & Home Care business unit recorded July 2015