Playtex sun care sales up 24% to $36.7 mil.; Schering, Pfizer report consumer sales jumps.

PLAYTEX SUN CARE SALES OF $36.7 MIL. UP 24% IN SECOND QUARTER of fiscal 1997 (ended June 28), representing the fastest growing segment of the personal care company, Playtex Products said. Growth in the category follows Playtex' effort to focus on its sun business with new product introductions and stepped-up marketing activities ("The Rose Sheet" Feb. 17, p. 4). In a conference call July 22, CEO Michael Gallagher told securities analysts the growth "was fueled by new product launches, distribution gains, continued market share gains and continued category growth."

Gallagher pointed out that consumption of Playtex products is outpacing the overall sun category by a three-to-one margin. He noted this growth will likely continue as vendors appear to be concentrating their buying practices, and "big players like Banana Boat and Coppertone all gain market share at the expense of the smaller, more marginal players."

In the first quarter, Playtex launched two new brands -- BioSun, a high SPF, premium-priced sunscreen line, and Banana Boat Tan Express, a line of tanning products geared toward a younger audience. The company also introduced a number of niche products under its Banana Boat banner, including an oil-free line, a sport line and Bite Block, a sunscreen/insect repellent ("The Rose Sheet" Feb. 17, p. 4).

In the height of sun season, sun care sales inched ahead of infant care products to become the company's second largest category, Playtex said. The firm's sun business is usually the company's third largest business, behind infant care and feminine care, the company said.

Gains in sun and infant care sales were offset by decreased sales in the company's feminine care products, where Playtex reported shipments were down 11%. Playtex "has moved away from the heavy trade promotional practices of the past" in feminine care, which has led to reduced retail demand," Gallagher said. Sales for the company's Jhirmack hair care brand were down about $1 mil. to $5 mil. for the three months.

Overall, Playtex reported a slight sales increase of 2.3% to $134.8 mil. Earnings for the three months were flat (up .5%) at $5.5 mil. For the six months, sales were down 1.3% to $271.3 mil., while net income grew 16.5% to $13.4 mil.

In an effort to maintain its growth, Playtex announced it is looking to broaden its H&BA and OTC portfolio through acquisitions of brands or companies ("The Rose Sheet" May 26, In Brief). On July 21, Playtex began the refinancing of its $470 mil. bank debt with a new $320 mil. senior credit facility and $150 mil. in unsecured senior notes. The refinancing enhances Playtex' acquisition capabilities as it reduces "required principal payments over the next five years by more than $300 mil.," Playtex said.

Sun care market share leader Schering-Plough reported Coppertone sales for the second quarter were flat. The flat sales may have been due to Schering-Plough's less aggressive launch on strategy for 1997, which focused more on expansion within brands, rather than introductions of new lines ("The Rose Sheet" Feb. 10, p. 9).

In spite of the lackluster sun care performance, sales for Schering-Plough's health care products division grew 6% to $180.6 mil. for the quarter, the company reported July 22. Schering attributed the growth to advances in foot care products, and specifically to the introduction of Dr. Scholl's Dynastep shoe inserts. For the six-month period, sales of health care products increased 6.3% to $377.4 mil., representing 11.5% of the firm's overall business for the period.

Schering-Plough consolidated sales advanced 16.5% to $1.72 bil., and net income increased 17.7% to $373.1 mil. Foreign currency exchange rates negatively affected revenues by about 3%., Schering noted. Through six months, sales were up 15% to $3.3 bil. and net income grew 16.3% to $748.4 mil.

Bain de Soleil sun care line marketer Pfizer invested heavily in the brand for the first time since its acquisition from Procter & Gamble at the end of 1995. Bain de Soleil offerings were repackaged and expanded with the introduction of a line for women, a sports line and an oil-free line ("The Rose Sheet" Feb. 3, p. 5).

For the second quarter, sales in Pfizer's consumer health division (which includes sun care sales) increased 7.1% to $135 mil., the company announced July 15. Pfizer attributed the sales growth to successful Rx-to-OTC product switches and cited its Cortizone hydrocortisone acquisition from Thompson Medical in 1996 as a contributor to consumer health growth ("The Rose Sheet" March 11, 1996, In Brief). In the U.S., consumer health care sales were up 4.7% to $89 mil., with international sales increasing 12.2% to $46 mil. For the six months, consumer health sales increased 10.3% from the year-ago period to $267 mil.

Worldwide, Pfizer total revenues were up 9.5% to $2.91 bil. for the quarter. Net income increased 16% to $457 mil. In the first half, sales grew 10.7% to $5.91 bil., and net income grew 16.2% to $1.06 bil.