Wrigley reports second quarterly sales on 16% increase

The Wm. Wrigley Jr. Company announced record quarterly sales of $1.2 bn, an increase of 16% on worldwide shipment increases of 21%. Consolidated operating profits for the quarter and the first six months of the year were down 7% and 8% respectively, due to restructuring charges and stock option expensing. Consolidated net earnings for the quarter of $141 m were down $22 m from the prior year. "We remain pleased with our strong top-line growth and the continued vitality of our core gum business worldwide," said Bill Wrigley, Jr., Chairman, President and Chief Executive Officer.


Global gum shipments were up 8% in the quarter, and the company gained gum share in a number of key competitive countries, such as France and Canada; extended share leadership in the key geography of China; and is gaining business momentum in India. Sales in North America were up 28 percent, with the strong majority of the gains coming from the acquired confectionery brands. In the U.S. marketplace, Wrigley s share of gum remains above 60 and near its all-time high. The candy brands, acquired from Kraft Foods, have added critical mass to the Company s overall non-gum confectionery business - that now accounts for just over 10% of Wrigley s worldwide sales. Asia continued to deliver strong sales growth, recording a 26%increase, the biggest contribution to the region s sales gain came from China, where sales expanded at a rate in excess of 30% In EMEAI (principally Europe), sales were up 7% increase. Growth in the region was led by double-digit gains in Russia, Ukraine, the Middle East and India, similar to the first three months of the year. Those strong gains for East/South Europe were partially offset by modest sales declines across West/North Europe, although both Germany and France had relatively better sales performances than in the first quarter.