Wrigley announces record annual sales in 2006

The Wm. Wrigley Jr. Company, Chicago, has announced that strong fourth-quarter volume growth produced over $1.2 bn in sales for the quarter and pushed global annual sales up 13% to $4.69 bn, setting a new record for the sugar confectionery company.


“We delivered solid results overall in 2006 and demonstrated the strength of our business,” said Bill Wrigley, Jr., Executive Chairman of the company. “Excluding one-time restructuring charges and option costs, we delivered earnings per share growth in the 9 to11 percent range for the seventh consecutive year, and we did so with double-digit sales and volume growth while completing the integration of a major acquisition, realigning our supply chain, and addressing increased competition in some key geographies.”


Sales increases were primarily driven by worldwide shipment growth of 15% for the full year and 8% for the fourth quarter. The full-year increase results from a combination of worldwide organic volume growth and six months of incremental sales from acquired confectionery brands, primarily in the North America region, while the fourth quarter volume increase reflects the solid performance of Wrigley s gum and confectionery business around the world, particularly in EMEAI (principally Europe) and Asia.


North America net sales for 2006 were $1.75 bn, an increase of 14% from 2005. Incremental shipments from the new confectionery brands for the first six months of 2006 accounted for the lion’s share of the increase. The balance came from Wrigley’s U.S. core gum and mint business which grew by 3%, led by sugarfree gum and mints. Asia net sales for 2006 were $623 m, an increase of 23%, with volume growth contributing nearly all of the gain. The increase was led by growth in the Extra and Doublemint brands in China, where Wrigley remains the No. 1 overall confectionery company. EMEAI net sales for 2006 were $2.07 bn, up $176 m or 9% from 2005. Volume growth accounted for the strong majority of the gain, led by increased sales of Orbit in Russia and Ukraine, as well as business expansion in India and the Middle East.