Text of Procter & Gamble and L'Oreal Canada lead Canadian personal care market
almost $377 M. Results for handsanitizers and heavy-duty handcleaners were the most disappointing,with sales declining 11.3% to $82.4 Mand 18.5% to about $2.7 M,respectively. Soap sales in departmentstores fell 2% to $17 M in 2011. Theslow growth, or no growth, is attributedto the lingering effects of the recession.
The Russian bathroom productsmarket rose steadily in 2011, asindicated by a healthy sales growth ofabout 8%, owing to several factors,including the improvement in theRussian economic landscape thatcontinued throughout 2011. TheRussian bath and shower market,which has shown signs of maturity in2012, is projected to show even greatersustainable annual growth in the nearfuture. Avon and Palmolive remain asthe market leading brands, with marketshares of 22.7% and 21.2%,respectively. They are trailed by Nivea(Beiersdorf) with 18%. Dove (Unilever),Camay and Timotei (Unilever) areamong the top six brands. Experts saythat gains in the liquid soap markethave been impressive both in valueand volume, despite the decline in solidsoap consumption. In Jan-Jul 2012,Russia’s soap market grew by 14.9%from the 2011 level. The volume ofRussian-made soaps, however, isdeclining. Production was lower by8.8% in 2011 compared with the 2010level. More than 86% of bulkproduction in Jan-Aug 2012 wasaccounted for by Volga, Central andNorth Western Federal Districts. Thevolume of imports fell by 5.5% fromend-2011, compared with 2008 levels.Exports of soaps made in Russia in2011 were valued at $10.5 M.
Procter & Gamble and L’Oreal Canadalead Canadian personal care market
Procter & Gamble Inc and L’OrealCanada Inc led the beauty andpersonal care market in value shareterms in 2011, when the Canadianbeauty market grew at a fasterconstant value rate than at any timesince 2007. Procter & Gamble’s Olaybrand has been successful inintegrating the anti-ageing agentsfrom its skin care line into its line of
body washes and bar soaps, as wellas seeing growing market share for itsCover Girl line of colour cosmetics.P&G’s Crest line of oral care productsachieved a third-place ranking interms of brands. However, aseconomic recovery was slower thananticipated, and the labour marketremained fragile, overall sales growthwas not as strong as the growthshown in pre-recessionary years. Thebeauty and personal care market isprojected to grow at a modestconstant value rate through to 2016.While retail sales are not expected tobe excessive, some products, such asanti-ageing skin care, will continue tooutpace overall market growth,stimulated by the ageing consumerbase.
Original Source: Companies and Markets, 2013.Found on SpecialChem Cosmetics and Personal CareInnovation and Solutions, 17 Jan 2013 (Website:http://www.specialchem4cosmetics.com)
Unilever increases profits thanks toAsian markets
Unilever grew mainly on Asian marketsin 2012. This resulted in a 10.5% risein group sales to €51.3 bn; underlyingsales growth was 6.9%. Net profitswere up 7% at €4.9 bn. The group’spre-tax profits rose by 7% to €6.68 bn.Sales and operating profits in emergingcountries such as India, Indonesia,China and Brazil were up by a double-digit percentage. In Europe, however,there was strong price competition,resulting in sluggish performance. Theregion’s sales rose by just 0.8% in2012, although the UK and France‘continued to perform well’. Sunsilkshampoo was among 14 of the Anglo-Dutch manufacturer’s brands toachieve revenues in excess of €1 bn in2012. On the back of the better-than-expected results, shares in theconsumer goods giant hit an all-timehigh of 2526p.
Croda’s underlying group sales rose by 3.2% in the 3-month periodsince 1 Jul 2012. Sales in Jul 2012and Aug 2012 were in accordancewith expectations, but sales in Sep2012 declined, restricting quarterlysales to £256.5 M. Turnoverdeclined in Europe but grew in allother major regions. Against a verystrong 3Q 2011, Consumer Caresales were down 2.7% to £140.9 Mdue to slow Personal Care sales,particularly in Europe. The firm’s 3Qoperating profit rose 4.7% to £59.7M. Even with the slow tradingenvironment in Europe, the firm’soperating profit for the year to dateincreased by 8.2% year on year to£193.5 M; sales were up 2.4% to£811.8 M.
Procter & Gamble doubles profitsthanks to savings programme
Procter & Gamble is harvesting thefirst fruits of its savings programme.Net profits in 2Q (Oct-Dec 2012) of itsbusiness year were $4.1 bn, thusmore than double the figure of $1.7bn reported a year earlier. Sales wereup 2% at $22.2 bn. The figuresexceeded analysts’ estimates andP&G has increased its forecast for thefull 2012/2013 business year. Thecompany is undergoing a far-reachingrestructuring process. Business willbe focused on fewer product lines andcountries. Costs are to fall by $10 bnby 2015.
In India, Procter & GambleHygiene and Healthcare has reporteda net profit of Rup 540 M (c €7.7 M)on total sales of Rup 4710 M for 2Qended Dec 2012, as against a netprofit of Rup 510 M on total sales ofRup 3540 M in 2Q ended Dec 2011.The company derived 19% highersales from its personal care andhealthcare division.