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Stepan reports higher 3Q 2013 earnings & sales
F O C U S section for the significant new uses for PFAS are listed. Original Source: Federal Register, 22 Oct 2013, 78 (204), 62443-62451 (Website: http://www.gpo.gov/fdsys)
MARKET REVIEWS Kline presents detailed report on global natural personal care market Global sales of natural personal care products grew 10.6% in 2013 to $29.5 bn at the manufacturers’ level despite variable economic conditions, according to a new report from Kline: Natural Personal Care: Global Market Brief. The report covers toiletries (including personal cleansing products); hair, skin and oral care products; makeup; and fragrances. While growth within mature markets has stabilized, it remains encouragingly impressive as exemplified by a 7% increase in the USA and 6% in Europe. Other markets are managing even more promising numbers, with China and Brazil the fastest-growing national markets in the sector. The Chinese natural personal care market posted a mighty increase in sales of nearly 24% in 2013, fuelled by major economic and societal changes that have resulted in quadrupled incomes and a market expanding movement away from coastal mega-cities. Local brands are estimated to comprise more than 80% of the market presently. Notably, of these local players, those offering mostly traditional Chinese medicine products account for approximately two-thirds of the Chinese natural personal care market. Non-domestic, international natural brands are becoming more accepted by Chinese consumers as they are considered to include truly natural ingredients and to be of a higher quality and adhering to greater safety standards. Over the last five years, global brands such as Jurlique, Kiehl’s and Origins have entered the Chinese natural personal care market and invested heavily in marketing and advertising their brands, creating a universally higher awareness of natural products among Chinese consumers. Local marketers, including Jala and Jahwa’s Herborist, 6
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spurred by foreign companies and their successful initiatives, have also significantly invested in marketing their products as natural. The new study encompasses two optional indepth companion reports, with comprehensive details and deep insights into the natural personal care markets in China and Japan. Original Source: Kline and Company, 2013. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 22 Oct 2013, (Website: http://www.specialchem4cosmetics.com)
COMPANY RESULTS Stepan reports higher 3Q 2013 earnings & sales US-based chemicals company Stepan Co reported 3Q 2013 net income of $20.4 M, which is an increase of 1% from $20.2 M in 3Q 2012. Net sales rose 8% from $440.98 M in 3Q 2012 to $475.47 M for 3Q 2013, boosted by improved sales volumes (+9%), notably in North America. Surfactant margins were down slightly as the slow global economy and select customer deformulations reduced demand and increased competitive activity. However, 3Q sales were up 2% year on year to $318.36 M from $313.08 M in 3Q 2012, while sales volumes grew 7%, with all regions contributing. Sales of functional surfactants used in oilfields dropped while global demand for agricultural products continued to rise. Surfactant gross profit fell 2% in the quarter to $45 M as a result of a decline in North American gross profit; Asia, Europe and Latin America all delivered higher gross profit in 3Q 2013. Original Source: Stepan Company, 2013. Found on PR Newswire, 21 Oct 2013, (Website: http://www.prnewswire.com)
Reckitt Benckiser grows thanks to emerging countries Consumer goods company Reckitt Benckiser did well in 3Q 2013 thanks to solid growth in emerging countries. Thanks also to growth in Europe and N America, sales rose 5% to £2.6 bn (€3.1 bn), beating forecasts. Full-year sales will now grow by up to 6% and the margin will be maintained at the
2012 level. The market is difficult, but the company is growing faster than the competition. Reckitt has announced it will study strategic options for its pharmaceuticals business. This may therefore be facing a sell-off. Original Source: Nachrichten fuer Aussenhandel, 22 Oct 2013, (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2013
Unilever’s growth in emerging countries halves Unilever is feeling the effects of slowing growth in emerging countries, where it realizes around half of its sales. The company’s underlying sales rose just 3.2% in 3Q 2013, compared with 5.9% a year earlier. Growth in emerging countries slowed from 12.1% to 5.9%. Turnover fell 6.5% to €12.5 bn. A fall had been expected. Unilever says it will counter the trend with new products. For the first nine months of 2013, Unilever’s underlying sales grew 4.4%, with emerging markets up 8.8%. Underlying volume growth was 2.4% ahead of its markets, and pricing up 1.9%. Turnover decreased 2.0% to €38.0 bn including a negative currency impact of 5.0%. Unilever’s personal care segment recorded turnover of €4.5 bn in 3Q 2013. The segment continued to deliver healthy volume-led growth in the quarter ahead of the market. Hair performed well, reflecting the strength of its portfolio of brands, while skin cleansing growth was driven by strong performances by Dove and Lifebuoy. The skin care, deodorants and oral care businesses also did well. The company’s home care segment recorded €2.2 bn in turnover in 3Q 2013 and €6.8 bn in the first nine months of 2013. Laundry growth was largely driven by increased volumes and the success of premium formats such as liquids. Unilever says it is responding to ongoing competitive intensity by re-investing part of its cost savings in product performance and in brand support. In France the firm launched new Skip Small & Mighty, a superior concentrated product with an in-built pre-treatment device, and the rollout of Omo with wash boosters reached South Africa and Indonesia. Radiant JANUARY 2014
MARKET REVIEWS Kline presents detailed report on global natural personal care market Global sales of natural personal care products grew 10.6% in 2013 to $29.5 bn at the manufacturers’ level despite variable economic conditions, according to a new report from Kline: Natural Personal Care: Global Market Brief. The report covers toiletries (including personal cleansing products); hair, skin and oral care products; makeup; and fragrances. While growth within mature markets has stabilized, it remains encouragingly impressive as exemplified by a 7% increase in the USA and 6% in Europe. Other markets are managing even more promising numbers, with China and Brazil the fastest-growing national markets in the sector. The Chinese natural personal care market posted a mighty increase in sales of nearly 24% in 2013, fuelled by major economic and societal changes that have resulted in quadrupled incomes and a market expanding movement away from coastal mega-cities. Local brands are estimated to comprise more than 80% of the market presently. Notably, of these local players, those offering mostly traditional Chinese medicine products account for approximately two-thirds of the Chinese natural personal care market. Non-domestic, international natural brands are becoming more accepted by Chinese consumers as they are considered to include truly natural ingredients and to be of a higher quality and adhering to greater safety standards. Over the last five years, global brands such as Jurlique, Kiehl’s and Origins have entered the Chinese natural personal care market and invested heavily in marketing and advertising their brands, creating a universally higher awareness of natural products among Chinese consumers. Local marketers, including Jala and Jahwa’s Herborist, 6
O N
S U R FA C TA N T S
spurred by foreign companies and their successful initiatives, have also significantly invested in marketing their products as natural. The new study encompasses two optional indepth companion reports, with comprehensive details and deep insights into the natural personal care markets in China and Japan. Original Source: Kline and Company, 2013. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 22 Oct 2013, (Website: http://www.specialchem4cosmetics.com)
COMPANY RESULTS Stepan reports higher 3Q 2013 earnings & sales US-based chemicals company Stepan Co reported 3Q 2013 net income of $20.4 M, which is an increase of 1% from $20.2 M in 3Q 2012. Net sales rose 8% from $440.98 M in 3Q 2012 to $475.47 M for 3Q 2013, boosted by improved sales volumes (+9%), notably in North America. Surfactant margins were down slightly as the slow global economy and select customer deformulations reduced demand and increased competitive activity. However, 3Q sales were up 2% year on year to $318.36 M from $313.08 M in 3Q 2012, while sales volumes grew 7%, with all regions contributing. Sales of functional surfactants used in oilfields dropped while global demand for agricultural products continued to rise. Surfactant gross profit fell 2% in the quarter to $45 M as a result of a decline in North American gross profit; Asia, Europe and Latin America all delivered higher gross profit in 3Q 2013. Original Source: Stepan Company, 2013. Found on PR Newswire, 21 Oct 2013, (Website: http://www.prnewswire.com)
Reckitt Benckiser grows thanks to emerging countries Consumer goods company Reckitt Benckiser did well in 3Q 2013 thanks to solid growth in emerging countries. Thanks also to growth in Europe and N America, sales rose 5% to £2.6 bn (€3.1 bn), beating forecasts. Full-year sales will now grow by up to 6% and the margin will be maintained at the
2012 level. The market is difficult, but the company is growing faster than the competition. Reckitt has announced it will study strategic options for its pharmaceuticals business. This may therefore be facing a sell-off. Original Source: Nachrichten fuer Aussenhandel, 22 Oct 2013, (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2013
Unilever’s growth in emerging countries halves Unilever is feeling the effects of slowing growth in emerging countries, where it realizes around half of its sales. The company’s underlying sales rose just 3.2% in 3Q 2013, compared with 5.9% a year earlier. Growth in emerging countries slowed from 12.1% to 5.9%. Turnover fell 6.5% to €12.5 bn. A fall had been expected. Unilever says it will counter the trend with new products. For the first nine months of 2013, Unilever’s underlying sales grew 4.4%, with emerging markets up 8.8%. Underlying volume growth was 2.4% ahead of its markets, and pricing up 1.9%. Turnover decreased 2.0% to €38.0 bn including a negative currency impact of 5.0%. Unilever’s personal care segment recorded turnover of €4.5 bn in 3Q 2013. The segment continued to deliver healthy volume-led growth in the quarter ahead of the market. Hair performed well, reflecting the strength of its portfolio of brands, while skin cleansing growth was driven by strong performances by Dove and Lifebuoy. The skin care, deodorants and oral care businesses also did well. The company’s home care segment recorded €2.2 bn in turnover in 3Q 2013 and €6.8 bn in the first nine months of 2013. Laundry growth was largely driven by increased volumes and the success of premium formats such as liquids. Unilever says it is responding to ongoing competitive intensity by re-investing part of its cost savings in product performance and in brand support. In France the firm launched new Skip Small & Mighty, a superior concentrated product with an in-built pre-treatment device, and the rollout of Omo with wash boosters reached South Africa and Indonesia. Radiant JANUARY 2014