ALBERTO FY 1993 MASS MARKET PERSONAL PRODUCT SALES REACH $491 MIL.

ALBERTO FY 1993 MASS MARKET PERSONAL PRODUCT SALES REACH $491 MIL., up less than 1% from a year ago, the firm said in its recently released annual report for the fiscal year ended Sept. 30. Pre-tax earnings for the segment fell 31.2% to $13.9 mil. The mass market personal product segment includes H&BAs sold at retail, foods and household products. Alberto-Culver cited Alberto VO5 and TRESemme hair care and FDS feminine deodorant spray as H&BA brands that performed well during the year. Alberto's 1992 and 1991 financial figures have been restated to reflect the reclassification of one of its foreign operations.

The firm commented that "Alberto VO5 products...are bigger and stronger today in the U.S. and around the world than at any other time in our history." Alberto noted, however, that "some of the smaller and newer brands had softer results which impacted the overall domestic group performance."

During the year, Alberto VO5 was extended in the U.S. with Alberto VO5 Hot Oil Therapy shampoos and leave-in conditioners and Salon Formula and Split Ends Treatment shampoos and conditioners ("The Rose Sheet" July 5, p. 4). The Alberto VO5 line was relaunched in the U.S. in January with new sizes, formulas and packaging ("The Rose Sheet" Dec. 14, 1992, p. 6). Tresemme retail products "made substantial distribution gains" in the U.S. during the year, the company said. The line was expanded with Tresemme Gold specialty conditioners in the fall ("The Rose Sheet" Sept. 27, p. 3).

In international markets, Alberto VO5 was relaunched in Scandinavia in the middle of the fiscal year by Alberto's 94%- owned Cederroth International subsidiary. Results of the launch have "far exceeded our expectations," Alberto said, noting that "consumer sales figures indicate that our shampoo and conditioning products will be among the top three products in each of the Nordic markets." The company also said that Alberto VO5 Hot Oil Treatment plays "a key role in our sales success in Scandinavia," is "a market leader in the United Kingdom" and "has become a top- seller in Mexico, Southeast Asia, and a number of other markets."

During the fiscal year, Alberto boosted its presence in the fragrance market in Puerto Rico and Latin America with the introduction of the Beyond scent for women, sold primarily in prestige outlets, and Royal Command mass market men's fragrance during the summer. The products join Command for men, which launched last year.

Fiscal 1993 sales for Alberto's "other" products segment, consisting primarily of Sally Beauty beauty supply stores, increased 13.3% to $551.3 mil. Pre-tax profit climbed 25.4% to $52.2 mil.

Sally Beauty growth was spurred by the addition of 35 U.S. stores with the acquisition of Helen of Troy's Beauty Biz subsidiary ("The Rose Sheet" Sept. 27, In Brief). Alberto noted that "the chain's prospects for 1994 are equally bright with plans to add 150 stores during the coming year, which represents an acceleration in our new store opening rate compared to the last several years." The company was operating 1,235 Sally Beauty stores in the U.S. and U.K. at the end of fiscal 1993, up from 1,098 stores at the end of fiscal 1992.

Sales of institutional products, which include professional hair care, dropped 6.9% to $115.7 mil. and pre-tax earnings also fell 6.9% to $12.9 mil. Despite the category declines, Tresemme salon hair care continued to show strengths in the U.S., Alberto said. The brand's salon-only 4+4 line grew "dramatically" in fiscal 1993, the company noted. Alberto's U.S. Professional Division also introduced Motions hair care for ethnic consumers late in the summer.

Outside the U.S., Tresemme "is a very strong seller in the United Kingdom professional market," Alberto said. Also in the U.K., the firm introduced the Andrew Collinge hair care line, named for a well-known hair stylist there. Launched in the spring, the products are sold exclusively in Boots pharmacies.

Alberto's fiscal 1993 consolidated sales advanced 5.2% to $1.15 bil. and pre-tax earnings grew 6.1% to $79 mil. The firm noted that "currency volatility had a significant impact on our reported results." On a constant dollar basis, fiscal 1993 sales would have been $52 mil. greater, the company stated. Total U.S. sales were $844.2 mil., ahead 10.8%, and U.S. operating profits declined 24.5% to $10.7 mil.

Cost of products sold was $564.3 mil., up 5.5%. Cost of products sold as a percentage of sales was 49.2% in fiscal 1993 compared to 49% in fiscal 1992. Advertising, promotion, selling and administrative expenses were ahead 5% to $511.3 mil., accounting for 44.5% of sales versus 44.6% the year before.

In fiscal 1994, Alberto said it expects its U.S. Toiletries Division to "grow and contribute as consistently as it has" and its Professional Division to "show continuing sales and profit growth." International markets "will be strong for us" in fiscal 1994, "barring any surprises in the state of the world economy," the firm predicted. "While we see the growth of private label in certain consumer areas, we believe that in the areas in which we compete, good brand name products supported by strong advertising throughout the world, create retail demand and profits," Alberto said.