MAYBELLINE REPORTS RECORD SALES FOR FIRST QUARTER, 1995
Highlights for the three months ended March 31, 1995 include:
-- Consolidated net sales were $92.7 million, up 0.7 percent over net sales of $92.0 million for the first quarter of 1994. By business division, net sales for Maybelline USA were up 0.5 percent to $78.3 million; Maybelline International, up 8.6 percent to $10.2 million; and Yardley North America, down 9.9 percent to $4.2 million versus first quarter 1994.
-- Quarterly net income of $5.0 million was down 19.1% from prior- year net income of $6.2 million; however, earnings per share increased to $0.36 from $0.35 per share for first quarter 1994 due to fewer average shares outstanding.
-- Operating income of $11.2 million was up 1.4 percent over first quarter 1994 operating income of $11.0 million.
-- The gross profit margin was 66.2 percent compared to 66.5 percent for first quarter 1994.
-- The operating margin was 12.1 percent compared to 12.0 percent for first quarter 1994.
Consumer sales continued to outpace manufacturer shipments for the Maybelline USA cosmetics division. According to the A.C. Nielsen Co., U.S. consumer sales of the Maybelline brand rose 7.9 percent for the year to date through March 18, while U.S. shipments increased 0.5 percent. Nielsen figures put Maybelline's dollar share at 19.2 percent of mass-market cosmetics through March 18, up 0.9 points from a year ago.
"Maybelline's dollar share is at the highest quarterly level since we became an independent company in July 1990," said Maybelline President and Chief Executive Officer Robert N. Hiatt. "We view that strong consumer response as a validation of our strategy to provide high- quality yet affordable cosmetics and skin care products and to support them with strong advertising and effective promotional programs."
"During the first quarter, consumer sales of Revitalizing cosmetics and skin care products continued to grow," Hiatt added. "When we aired a new television commercial for Revitalizing mascara in February, we saw the rate of sales increase dramatically in our key accounts, and the mascara sales gain had a positive effect on other products in the Revitalizing line. But our focus for 1995 is on Classic Maybelline. In the first quarter, we began just the first phase of `A Fresh New Face' for Maybelline, introducing high-tech cosmetics and skin care products showcased in a new, easy-to-shop retail display system. We have begun to install the new display in the first group of 14,700 targeted retail stores, and the process will continue into the second quarter."
In addition to the growth in the Maybelline USA business, Hiatt pointed to the continued strong growth rate for Maybelline International. "Coming off a year of 27 percent growth, Maybelline International sales have continued to rise both in established markets, such as Canada, and in major emerging markets in Asia/Pacific and Latin America," he said.
While management is pleased with first-quarter results, Hiatt noted 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 47 countries. The Company also manufactures and markets Yardley soaps and the Yardley Bath Shoppe line specialty bath of specialty bathcare products in the United States and Canada.
Unaudited Financial Highlights
(In thousands, except per share amounts)
Financial Data First Second Third Fourth Year Net sales $92,712 Cost of sales 31,292 Operating income 11,205 Net income 5,026 Net income per common share 0.36 Average shares outstanding 13,906 Dividend per common share 0.07
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- 4/19/95
/CONTACT: Joan H. Lollar of Maybelline, 901-320-2460/
CO: Maybelline, Inc. ST: Tennessee IN: HOU REA SU: ERN
CM-MM -- CH005 -- 8853 04/19/95 08:53 EDT
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|Date:||Apr 19, 1995|
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