TOP NOTES
NO SALE: Profits may have slipped a bit last year in Sanofi’s beauty division, but the persistent rumors that the French pharmaceuticals giant is going to sell its beauty interests are rubbish, according to Jean-Francois Dehecq, chairman
“I have no interest in selling Sanofi Beaute, and I have made this very clear,” he said. “I am more interested in making this business grow. It’s my understanding that some of our competitors like to make rumors about us. If these rumors say that Sanofi is selling its beauty division, they are wrong, and the women and men of Sanofi know this.”
Profits were down in 1996 at Sanofi’s beauty division and its Nina Ricci subsidiary. Only the company’s Yves Rocher subsidiary saw its net increase for the year.
In a statement, the company blamed a slowdown in the luxury sector in Europe and a dearth of product launches for the results.
Operating profits in the beauty division, which includes Parfums Yves Saint Laurent, Parfums Oscar de la Renta and Parfums Van Cleef & Arpels, slipped 28 percent to $42 million (236 million francs). Sales were down 5 percent to $679 million (3.8 billion francs), as reported.
The company did not break out profit figures for the majority-held Nina Ricci and Yves Rocher, but their total contribution to group profits was down 16 percent to $28.2 million (158 million francs) in 1996.
Although Ricci’s beauty sales were down 5 percent to $201.8 million (1.13 billion francs), the picture at Yves Rocher, 62 percent of which Sanofi owns, was more upbeat. Rocher’s sales were up 5 percent to $1.2 billion (6.7 billion francs).
The momentum has been different at Sanofi Beaute Inc., the U.S. division. The subsidiary, which was profitable for the first time in 1995, saw an increase of 157 percent in earnings last year.
LIQUIDATION PLAN: Italian makeup artist Diego Dalla Palma has responded to the current craze for compact foundations by developing a “liquid powder.” Dalla Palma’s Wet Powder is comprised of a blend of fine powders, dissolved in liquid, which revert to their original state once applied to the skin.
While the product resembles a liquid foundation, it leaves the skin with a transparent, uniform finish as powder does, according to the company. The item is meant to be used for both dry skin in need of a silky base and oily skin requiring a matte finish.
Wet Powder comes packaged in plastic bottles containing a tiny ball, used to facilitate mixing. A vigorous shaking is recommended prior to application. The outer packaging, in Dalla Palma’s black and white color scheme, opens up to reveal product literature and instructions.
Available in light beige, beige and biscuit, the product carries a retail price of $23 (39,000 lire).
Wet Powder is currently rolling out to about 600 Italian perfumeries, Diego Dalla Palma corners in the Coin and La Rinascente department stores and the company’s three freestanding stores in Italy. It will shortly arrive at the Odakyu department store in Tokyo, which has carried the professional line since last September.
The Milan-based company targets an August launch in the U.S. for its makeup, skin care and body care.