MAYBELLINE REPORTS QUARTERLY RECORDS FOR NET SALES AND OPERATING INCOME; MARKET SHARE OF U.S. COSMETICS RISES TO 18.8%
Highlights for the three months ended June 30, 1995:
-- Quarterly consolidated net sales were a record $97.3 million, up 7.7 percent over sales of $90.3 million for the second quarter of 1994. By business division, net sales for Maybelline USA were up 10.3 percent to $82.2 million; Maybelline International, down 1.1 percent to $11.2 million; and Yardley North America, down 12.9 percent to $3.9 million versus the second quarter of 1994.
-- Operating income of $11.7 million, also a record, was up 7.9 percent over operating income of $10.9 million for second quarter 1994.
-- Earnings per share rose to $0.38 from $0.37 per share in the prior-year period, reflecting fewer shares outstanding. Net income of $5.3 million was down 3.4 percent from $5.5 million in second quarter 1994, largely due to increased interest expense as the result of additional borrowing to repurchase shares of common stock.
The Maybelline USA division reported improved market share, with gains for both the Classic Maybelline and Revitalizing businesses in the most recent three months. A.C. Nielsen figures for the year through June 17 show Maybelline with an 18.8 percent share of U.S. mass-market cosmetics, up 0.8 points compared to the same period a year ago. Maybelline U.S. dollar sales to the consumer for the same period grew 8.2 percent, compared to growth of 3.8 percent for the total mass-market cosmetics industry.
The Maybelline Board of Directors also announced a regular quarterly dividend of 8 cents per share to be paid on September 29, 1995, to shareholders of record at the close of the business on September 8.
Highlights for the six months ended June 30, 1995:
-- Consolidated net sales were $190.0 million in the first half of 1995, up 4.2 percent over sales of $182.3 million for the first half of 1994. By business division, net sales for Maybelline USA were up 5.3 percent to $160.5 million; Maybelline International, up 3.3 percent to $21.4 million; and Yardley North America, down 11.4 percent to $8.1 million versus the first half of 1994.
-- First-half operating income of $22.9 million was up 4.7 percent over operating income of $21.9 million for the first half of 1994.
-- Earnings per share rose to $0.74 from $0.72 per share in the prior-year period, reflecting fewer shares outstanding. Net income of $10.4 million was down 11.7 percent from net income of $11.7 million for the first half of 1994, largely due to increased interest expense as the result of additional borrowing to repurchase shares of common stock.
"We are pleased that Maybelline USA -- our largest business division -- has resumed its growth in sales and market share," said Robert N. Hiatt, President and Chief Executive Officer. "We see this strong growth as confirmation of the consumer appeal of our new products, such as Lash by Lash mascara, Natural Accents blush and shadow, and Natural Defense foundation. We have also seen the positive impact of our new Vista 1-2-3 retail display system, which has been installed in 90 percent of our targeted stores."
Hiatt said he was pleased with continued growth in consumer sales and market share for the Revitalizing line of cosmetics and skin care products. Added to the technologically-advanced line this year is Revitalizing Alpha Hydroxy Make-up, making Maybelline the first major mass-market brand to combine true Alpha Hydroxy skincare in a cream foundation. Nielsen figures show that consumer sales of Revitalizing products are up 54 percent for the year through June 17 versus the comparable year-ago period.
"Mexican economic problems affected our Maybelline International performance in the first half," Hiatt said. "Sales including our Mexican subsidiary are up only 3.3 percent for the first half, but excluding Mexico our International sales increased 13.2 percent."
"Maybelline International accelerated its pace of market expansion in first half, introducing Maybelline products in China and South Korea through a strategic alliance," Hiatt added. "The Chinese government has granted the approvals necessary for the manufacture and sale of Maybelline cosmetics and other personal care products, and sales of imported products have already begun in the Guangdong province. Sales in additional regions are planned, and construction has begun on a manufacturing facility, which should be operational later this year."
While the company is pleased with first-half results, Hiatt added that interim period results are not necessarily indicative of full-year performance.
Headquartered in Memphis, Maybelline, Inc., is a leader in the mass- market color cosmetics business, manufacturing and marketing eye, face, lip and nail cosmetics and other personal care products for sale in the United States and in selected international markets. Maybelline products are carried by virtually every major U.S. mass-market retailer -- including drug stores, discount stores, supermarkets and cosmetics specialty stores -- and are distributed in approximately 47 countries. The company also manufactures and markets Yardley soaps and the Yardley Bath Shoppe line of specialty bath care products in the United States and Canada.
MAYBELLINE, INC. Unaudited Financial Highlights (In thousands, except per share amounts)
Financial Data First Second Third Fourth Year Net sales $92,712 $97,280 Cost of sales 31,292 33,349 Operating income 11,205 11,713 Net income 5,026 5,330 Net income per common share 0.36 0.38 Average shares outstanding 13,906 13,909 Dividend per common share 0.07 0.08
1994 Quarterly Financial Data
Net sales $91,972 $90,337 $89,395 $80,080 $351,784 Cost of sales 30,815 30,292 30,710 28,302 120,119 Operating income 11,047 10,851 8,322 5,145 35,365 Net income 6,210 5,519 3,708 1,131 16,568 Net income per common share 0.35 0.37 0.25 0.08 1.07 Average shares outstanding 17,850 14,911 14,875 14,249 15,471 Dividend per common share 0.06 0.07 0.07 0.07 0.27 -0- 7/19/95
/EDITORS' ADVISORY: Maybelline, Inc.'s press releases are available at no charge through PR Newswire's Maybelline-On-Call fax service. For a menu of Maybelline press releases or to retrieve a specific release, call 800-758-5804, extension 551813./
/CONTACT: Joan H. Lollar, Maybelline, Inc., 901-320-2460/
CO: Maybelline, Inc. ST: Tennessee IN: HOU REA SU: ERN
MB -- CH003 -- 6266 07/19/95 08:31 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 19, 1995|
|Previous Article:||MEDIC COMPUTER SYSTEMS ANNOUNCES SECOND QUARTER EARNINGS|
|Next Article:||GENERAL INSTRUMENT CORPORATION REPORTS RECORD SECOND QUARTER 1995 RESULTS; SECOND QUARTER SALES AND OPERATING INCOME UP 20 PERCENT AND 22 PERCENT...|