Alberto Culver Co. posted a stronger-than-expected quarterly profit, as the maker of Alberto V05 and Tresemme shampoos saw double-digit sales growth across its beauty care brands.
Net income in the third quarter ended June 30 rose about 69 percent, to $47.2 million, or 47 cents a share, from almost $28 million, or 28 cents a share, a year earlier.
Excluding one-time items, the company’s earnings from continuing operations were 39 cents a share, 2 cents more than what analysts polled by Thomson Reuters I/B/E/S had expected.
Net sales rose 18.8 percent to $417.6 million, topping the $391.3 million analysts had expected.
Stripping out the effects of foreign currency fluctuations and acquisitions and divestitures, sales rose 10.7 percent.
“Despite challenging economic conditions and soft category growth rates, we continue to outperform the hair care category and gain market share,” Chief Executive V. James Marino said in a statement. “Double-digit organic sales growth was broad based across our core beauty care brands.”
Sales rose 12.7 percent in the U.S. on strong demand in several core brands, while international sales jumped 29 percent, mostly due to heavy Tresemme growth.
Gross profit margin rose to 51.5 percent from 50.8 percent due to lower commodity costs, while advertising and marketing costs increased 20.1 percent, mostly from activity for Tresemme and St. Ives, Alberto Culver said.
The company also said its board had approved the regular quarterly cash dividend of 8.5 cents a share, payable Aug. 20 to shareholders of record Aug. 5.
