DARMSTADT, Germany — Wella AG reported that 1993 net profits jumped 17 percent on a 4.6 percent sales gain.
For the year, the company earned $63.6 million (DM106 million) at current exchange rates, against DM91 million a year ago.
Sales rose to $1.7 billion (DM2.8 billion) from DM2.7 billion.
Wella said its core business of hair care products outpaced growth in overall group sales, with hair care sales rising 5.9 percent, to $1.3 billion (DM2.2 billion). The division now accounts for 77.3 percent of all sales, up from 76.3 percent.
Wella said hair care sales were boosted by acquisitions made in June that offset unfavorable currency exchange rates.
Sebastian International, based in Woodland Hills, Calif., was acquired in 1993 but will be consolidated this year, Wella said.
Sebastian had sales of $90 million (DM150 million) last year. Wella chairman Peter Zuehlsdorff projected sales growth of $240 million (DM400 million) to $270 million (DM450 million) at Sebastian within five years, with half of that revenue coming from exports. Sebastian’s exports now account for 18 percent.
Wella said it expects 1994 earnings growth to exceed sales growth, which should rise 13 to 15 percent. The company noted that group sales climbed 10 percent in the first quarter, with earnings climbing in the same proportion.