Beauty Beat: Quest Deal Weighs on Givaudan’s Net Profit in 1st Half… Men’s Line Heads to Stores…
For the first half of 2007, Givaudan posted a net profit of 86 million Swiss francs, or $70 million at average exchange, down 67.7 percent over the same period in 2006. This was primarily due to the integration of Quest International.
PARIS — For the first half of 2007, Givaudan posted a net profit of 86 million Swiss francs, or $70 million at average exchange, down 67.7 percent over the same period in 2006. This was primarily due to the integration of Quest International.
As reported, Givaudan flavors and fragrance supplier, based in Varnier, Switzerland, announced late last year its intent to acquire Quest from Imperial Chemical Industries PLC in a deal valued at 1.2 billion pounds, or $2.21 billion at average yearly exchange. The European Commission approved the buy in late February, and Givaudan consolidated Quest's sales on March 2.
On a pro forma basis, combining the businesses of Givaudan and Quest between Jan. 1, 2006, and June 30, the company's net profit decreased 20 percent to 144 million Swiss francs, or $117.3 million.
In real terms, Givaudan's operating profit declined 40.9 percent to 185 million Swiss francs, or $150.7 million, reflecting a one-time integration-related cost of 100 million Swiss francs, or $81.5 million, and 84 million Swiss francs, or $68.4 million, worth of amortization of intangible assets related to the Quest acquisition. On a comparable basis, operating profit rose 13.7 percent to 282 million Swiss francs, or $229.7 million.
Givaudan's actual gross profit margin dropped to 47.5 percent from 49.1 percent in the first half, ended June 30, due to the lower profitability of the Quest business. On a pro forma basis, gross profit margin remained flat at 47.6 percent.
Givaudan's sales in the half rose 36 percent to 2.01 billion Swiss francs, or $1.63 billion. In local currencies, revenues gained 36.3 percent, and on a comparable basis, they increased 4.6 percent and 4.4 percent in local currencies.
Revenues from Givaudan's fragrance division increased 49.9 percent to 909 million Swiss francs, or $740.6 million, thanks largely to "strong growth" of its consumer products business across all regions, the company said in a statement. In local currencies, the uptick was 49.8 percent.
Givaudan's flavors revenues came in at 1.096 billion Swiss francs, or $892.9 million, up 26.2 percent, or 26.8 percent in local currencies. — Jennifer Weil
Men's Line Heads to StoresNEW YORK — Mensgroom, a 16-item men's hair, face and body care collection that was launched online last fall, is making a push into retail stores.
Cherry Robinson, managing director of Toronto-based Professional Hair Care Products Inc., parent of Mensgroom, anticipates the line will reach 225 doors, including Sears Canada and The Bay stores, this summer. It's her goal to expand the line to department and specialty store doors in the U.S., U.K., Spain and other European countries by fall.
Since its online launch last fall, the line has garnered $2 million in retail sales, according to industry sources — who added that by yearend, sales could near $7 million.
"It was really important to have a comprehensive assortment," Robinson said of Mensgroom. The line, she added, is "designed for easy selection."
A bronze bar atop outer packaging denotes whether a product is for hair, face or body. Items have been given names like Shave the Males, a moisturizing shave cream (200 ml. for $22); Eye Feel Good, a cream that addresses puffiness, dark circles and crow's feet (15 ml. for $35), and Daily Shower Power, an exfoliating shower gel (200 ml. for $22).
In addition to the shower gel, the Mensgroom body range features Sore No More, a 200-ml., $24 moisturizer that's designed to soothe muscles.
The face range includes Be Cleansed My Son, a cleanser, and Scrubbed The Right Way, a scrub, each of which comes in a 100-ml. size for $20. There's also Time Fighter, a 50-ml. cream for $45; Daily Defender, a 100-ml. moisturizer for $40, and Soothe the Shaven Beast, a 100-ml. aftershave balm for $30.
The Mensgroom hair care range features Daily Wash Out shampoo, Daily Do Right conditioner and — for thinning hair — there's Firmly Rooted shampoo and Root Rescue conditioner. Each of the four products is $20 for 200 ml. There are two styling products, the 50-ml. Iron Grip gel, for $24, and the 100-ml. Not-So-Iron Grip gel for $22. A scalp treatment called Feed Your Head is priced at $45 for 100 ml."Men wanted products to be effective, fun and [have a] personality," according to Robinson.
Professional Hair Care Products was founded in 2000 by Gerd Schwarzkopf, whose grandfather, Hans, founded the Schwarzkopf hair care company in 1903. Its Mensgroom brand was originally launched at Amazon.com and mens-groom.com. — Matthew W. Evans
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)