Gillette Forecasts Strong 2004 Fueled By Robust Product Pipeline
This article was originally published in The Rose Sheet
Executive Summary
Gillette anticipates 2004 will be "one of the strongest new product years" in company history, with launches planned under the company's blade & razor and oral care divisions, VP-Investor Relations Chris Jakubik said during a first quarter analyst call April 29
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Gillette anticipates 2004 will be "one of the strongest new product years" in company history, with launches planned under the company's blade & razor and oral care divisions, VP-Investor Relations Chris Jakubik said during a first quarter analyst call April 29. The company has a strong product pipeline in place that encompasses the firm's various segments more than it has in the past, Jakubik stated. "You're seeing more, both in the way of new products, but also product news, and that has been...a priority since [CEO] Jim Kilts got here," the exec added. Oral-B Brush-Ups textured teeth wipes are bowing in June, backed by print and television ads breaking concurrently with the launch. Print ads will appear in health and lifestyle magazines, Gillette said. Positioned as an "on-the-go" approach to maintaining clean teeth and fresh breath, Brush-Ups allow users to clean their teeth, gums and tongue without water or rinsing. The wipes will be available in Mint Burst flavor and will retail for $2.49 for a package of 12. Also bowing now under the Oral-B brand is the Hummingbird , a vibrating system for flossing teeth and removing plaque. In addition, Gillette's M3 Power shaving system with pulsating action is debuting this month (1 (Also see "Gillette Amps Up Mach3 With M3Power Launch" - HBW Insight, 19 Jan, 2004.), p. 3). The premium-priced razor is expected to positively impact Gillette's blade & razor division's Q2 performance, the firm said. Gillette reiterated plans to maintain the "super premium niche" positioning of the newly acquired Rembrandt oral care brand and said it does not expect to compete with tooth whitening offerings from market leaders Procter & Gamble and Colgate-Palmolive. The firm announced the acquisition in March (2 (Also see "Gillette Enters Tooth Whitening Market With Rembrandt Acquisition" - HBW Insight, 29 Mar, 2004.), p. 4). Gillette's blade and razor sales grew 16% to $1.04 bil. in Q1, including an 8% increase from foreign currency. Profit from operations increased 26% to $417 mil. Oral care sales improved 7% to $315 mil., and profit grew 13% to $55 mil. In personal care, sales increased 14% to $210 mil., and profit from operations was $13 mil., up from a break-even level last year. Consolidated net sales increased 13.4% to $2.24 bil., with foreign exchange contributing seven percentage points. Net income jumped 43% to $376 mil. |