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Melrose Park, IL 708.450.3000 www.alberto.com Sales: $1.5 billion Sales: $1.5 billion (estimated) for personal care products. Corporate sales: $1.6 billion. Net income: $155 million for the year ended Sept. 30, 2010. Key Personnel: V. James Marino, president and chief executive officer; Gina Boswell, president, global brands; Richard J. Hynes, president, international; Casey Keller, president, US; Ralph J. Nicoletti, executive vice president and chief financial officer; Gary P. Schmidt, senior vice president, general counsel and secretary. Major Products: Hair Care—Alberto VO5, TreSemmé, Nexxus, Motions, Just for Me, Soft & Beautiful; Skin Care—St. Ives, Noxzema. Household Care—Static Guard, Kleen Guard. New Products: VO5 Perfect Hold Styling, Nexxus Pro•Mend Comments: Alberto is on its way out as a member of The Top 50. Last September, Unilever agreed to purchase the company in a $3.7 billion cash deal. The move satisfies several objectives for Unilever. Specifically, it: • Enhances Unilever’s presence in an attractive, high-growthcategory. • Brings a portfolio of attractive brands, which have togethergrown at above market growth rates in a competitivecategory. • Provides Unilever with the opportunity to use its scale,reach and technology to take Alberto Culver’s brands to anew level in existing markets and extends its presence to newemerging markets. • Adds successful styling andconditioning brands likeTreSemmé and Nexxus to Unilever’s US portfolio,complementing its own brands such as Suave, Dove and Sunsilk. • Adds complementary brands like VO5, Tresemmé andSimple that enable Unilever’s UK business to cover moreprice pointsacross categories. To learn more about Unilever, be sure to read The International Top 30, which will appear in the August issue of Happi. While Alberto-Culver may be going out, it’s going out with a bang, not a whimper. Sales in fiscal 2010 rose more than 11% and net income rose 30%. In the US, sales increased 3.5% in the fourth quarter due to growth in TreSemmé and Nexxus. International sales on a reported basis increased 26.7% (the net effect of foreign currency fluctuations, acquisitions and divestitures accounted for approximately 19.5% of the growth) as each international region generated organic sales growth, with Latin America and Canada being particularly strong. For the first quarter ended Dec. 31, 2011, sales increased 11.7% to $405 million. In the US, sales increased 2.8% on the strength of Nexxus’ sales.
Melrose Park, IL
708.450.3000
www.alberto.com
Sales: $1.5 billion
Sales:
$1.5 billion (estimated) for personal care products. Corporate sales: $1.6 billion. Net income: $155 million for the year ended Sept. 30, 2010.
Alberto is on its way out as a member of The Top 50. Last September, Unilever agreed to purchase the company in a $3.7 billion cash deal. The move satisfies several objectives for Unilever. Specifically, it:
• Enhances Unilever’s presence in an attractive, high-growthcategory.
• Brings a portfolio of attractive brands, which have togethergrown at above market growth rates in a competitivecategory.
• Provides Unilever with the opportunity to use its scale,reach and technology to take Alberto Culver’s brands to anew level in existing markets and extends its presence to newemerging markets.
• Adds successful styling andconditioning brands likeTreSemmé and Nexxus to Unilever’s US portfolio,complementing its own brands such as Suave, Dove and Sunsilk.
• Adds complementary brands like VO5, Tresemmé andSimple that enable Unilever’s UK business to cover moreprice pointsacross categories.
To learn more about Unilever, be sure to read The International Top 30, which will appear in the August issue of Happi.
While Alberto-Culver may be going out, it’s going out with a bang, not a whimper. Sales in fiscal 2010 rose more than 11% and net income rose 30%. In the US, sales increased 3.5% in the fourth quarter due to growth in TreSemmé and Nexxus. International sales on a reported basis increased 26.7% (the net effect of foreign currency fluctuations, acquisitions and divestitures accounted for approximately 19.5% of the growth) as each international region generated organic sales growth, with Latin America and Canada being particularly strong.
For the first quarter ended Dec. 31, 2011, sales increased 11.7% to $405 million. In the US, sales increased 2.8% on the strength of Nexxus’ sales.
Melrose Park, IL 708.450.3000 www.alberto.com Sales: $1.3 billion
Sales: $1.3 billion for personal care and household products. Corporate sales: $1.4 billion. Net income: $119 million for the year ended Sept. 30, 2009
Sales dipped less than 1% last year. Beauty care accounted for 94% and the U.S. accounted for 64% of sales. U.S. sales increased 6.3% to $917 million thanks to higher sales of TreSemmé hair care products (3.6%) and Nexxus products (1.1%). In addition, the acquisition of Noxzema in October 2008 added approximately 3.8% to sales for fiscal year 2009. These increases were partially offset by lower sales from other brands including Alberto VO5 and St. Ives, as well as certain multicultural brands, the company said.
International sales fell 10.9% to $517 million, primarily due to the effect of foreign currency fluctuations
(20.0%), partially offset by higher sales of TreSemmé hair care products (5.7%) including the effect of the launch in Spain in the third quarter of 2008 and the Nordic region in the fourth quarter of 2009, as well as St. Ives (1.2%). The launch of Nexxus in Canada also contributed to the segment’s organic growth during the period.
But a new year caused new headaches for Alberto Culver, as a new computer system arrived with some glitches. Net sales for the first half of fiscal year 2010 increased 7.3% to $747.8 million, driven primarily by foreign currency fluctuations. U.S. sales fell 1.7%, despite strong growth of TreSemmé. Carol Lavin Bernick, executive chairman of the company, blamed the decline on U.S. service issues caused by plant closure and a switch to SAP software.
“While we are continuing to focus our efforts towards resolving our U.S. service issues, the balance that we have created between our international and U.S. businesses and our strong portfolio of brands has continued to allow us to produce positive results,” she insisted. “We will continue to focus on brand growth in all our markets and to resolve our U.S. service issues with urgency and tenacity.”
In product news, the 96-year-old Noxzema brand, best known for its blue jars and minty scent, is back for Summer 2010 with new products, updated packaging and a new advertising campaign. To celebrate its return, the company introduced new Clean Blemish Control formulations—specifically designed for adult skin to help prevent breakouts and blemishes—and a fresh partner to the brand, consulting dermatologist Hilary Reich.
“We’re thrilled that Noxzema will further strengthen the Alberto Culver skin care portfolio. With this re-launch, we’re bringing an iconic name, with years of history, to modern women, offering them the daily promise of a clean and fresh start,” said Cynthia Rolfe, vice president skin care, Alberto Culver.
Sales: $1.4 billion for personal care and household products. Corporate sales: $1.44 billion. Net income: $228 million for the year ended Sept. 30, 2009.
Corporate sales rose 9.7% last year. U.S. sales increased 5.0% to $863.0 million, due primarily to higher sales of Tresemmé shampoos, conditioners and styling products (4.3%) and multicultural brands (0.7%). International sales increased 16.5% to $580.5 million due to higher sales of Tresemmé shampoos, conditioners and styling products (11.0%), St. Ives products (0.9%) and the effect of foreign exchange rates (2.8%).
“Despite soft hair care category trends in key markets like the U.S. and the U.K., we were able to generate high single-digit organic revenue growth,” observed James Marino, president and chief executive officer.
More than a year ago, Alberto sold its Cedderoth International unit to CapMan, a Nordic-based private equity firm. Following its acquisition of Noxzema in October, Alberto-Culver executives are confident that they can build a strong skin care business in the U.S. to complement hair care. The company is quick to point out that Noxzema has 90% brand recognition with consumers.
But for now, Alberto-Culver is all about hair. For the first half of 2009, net sales increased nearly 1% to $697 million. Growth was driven by Tresemmé and Nexxus.
$1.5 billion for personal care and household products. Corporate sales: $1.54 billion. Net income: $78.2 million for the year ended Sept. 30, 2007.
Corporate sales rose 10.2% last year. The gains were attributed to higher sales of Tresemme in the U.S. and Latin America and the launch of Nexxus into retail channels in the U.S. In addition, organic sales growth for fiscal year 2007 includes the effect of net sales to Sally Holdings after the unit was spun-off in 2006.
In February, Alberto-Culver appointed Gina Boswell president of global brands. She oversees global brands such as Alberto V05, Tresemme, St. Ives and Nexxus, research and development and consumer insights. Prior to this appointment, she was with Avon Products, Inc., where she most recently served as senior vice president and chief operating officer for Avon North America.
In May, the company sold its Cedderoth International business to CapMan, a leading Nordic-based private equity firm. Cederroth, based in Sweden, manufactures and markets a diversified group of consumer products in the Nordic region and parts of Europe with only a portion of its brands competing in beauty care categories. It had sales of $226 million in 2007.
For the first half of fiscal 2008, sales increased 10.7% to $813.5 million. Net earnings soared to $59.9 million, up from $16.7 million in 2007.
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