Neutrogena U.S. Cosmetics Sales Up 30% In Fourth Quarter
This article was originally published in The Rose Sheet
Executive Summary
Neutrogena domestic sales rose 30% in the fourth quarter over the prior-year period, Johnson & Johnson announced during an analyst conference call Jan. 25.
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Neutrogena domestic sales rose 30% in the fourth quarter over the prior-year period, Johnson & Johnson announced during an analyst conference call Jan. 25. The brand's U.S. business was driven by the "continued growth of the Neutrogena line of Beautiful and Beneficial cosmetics," VP-Investor Relations Helen Short stated. The color line, which was introduced in April 1998, had a 5.8% share of the U.S. facial cosmetics market for the 13 weeks ended Nov. 21, Short noted, quoting figures from Information Resources, Inc. (Chicago). The national rollout of RoC skin care in the U.S. in September and "positive growth" in the Aveeno and Clean & Clear skin care brands contributed to a 10.4% domestic consumer products sales gain for the year, the exec added. J&J's worldwide consumer product sales were up 5.2% to $6.86 bil. for the twelve months and were flat at $1.74 bil. for the quarter. Consolidated sales jumped 14.5% to $27.47 bil. in the year and 6.3% to $6.88 bil. for the fourth quarter. Net earnings totaled $754 mil. compared to $102 mil. in 1998, after special charges. Through three months, net income was up 38.8% to $4.17 bil. Procter & Gamble beauty care sales were down 3% to $1.09 bil. on a 5% volume decrease for the fiscal second quarter (ended Dec. 31). "A difficult competitive environment and declining consumption in China," especially in the hair care segment, contributed to the lower results, P&G noted. Beauty care net earnings were unchanged over the previous year at $273 mil., which the company attributed to cost-control measures. Through six months, beauty sales and earnings were both down 2% to $3.72 bil. and $498 mil., respectively. Unit volume slipped 4%. P&G "continues to emphasize long-term value creation by investing in premium initiatives," the company said, naming Secret Platinum antiperspirant and Oil of Olay cosmetics as examples. A number of new products will launch in the second half, including Physique hair care. Consolidated sales were up 7% to $10.59 bil. while earnings slipped 1% to $1.23 bil. for the quarter. Through six months, sales increased 5% to $20.51 bil. and income slid 2% to $2.27 bil. |