Wrigley reports new first quarter record

The Wm. Wrigley Jr. Company announced record first quarter sales of $1.45 bn, up 16% from the year-ago quarter. The positive impact of currency, due to translation of international sales into a relatively weaker U.S. dollar, accounted for approximately half of the increase. The balance of the gain was due to a combination of price/mix and a one percent growth in shipments.


Consolidated operating profits in the period were $270 m, up 28% from the same quarter in the prior year. Favorable translation of foreign currencies to the weaker U.S. dollar accounted for approximately half the gain.
Consolidated net earnings of $169 million were up by nearly 18%. On a non-GAAP basis, excluding the impact of restructuring and the one-time asset sale gain in the year-ago period, earnings per share increased 22% versus the first quarter of 2007.


In Asia/Pacific, sales increased by 25% to $317 m on volume growth of over 13%. In China, Wrigley strengthened its position as the number 1 confectioner, led by strong sales increases for Extra, Doublemint and Tata bubble gum; while in Australia, growth was driven by the combined success of Extra gum and Extra mints. Increased sales in Vietnam were fueled by the growing popularity of Cool Air.


In EMEAI, sales were $679 million, up 20% on volume growth of 4%, including the incremental contribution from the A. Korkunov chocolate acquisition in Russia. Russia, Germany, Poland and India all recorded strong double-digit sales increases and helped drive growth in the region. India s growth reflected the continued expansion of the Boomer brand. Poland benefited from the growth of Winterfresh mints and bag packaging for gum, while sales of Airwaves and Extra in Germany – especially in bottle packaging – led the growth there. Partially offsetting these gains were declines in the United Kingdom. The U.K. business remained solid in the face of increased competition, but the overall gum category declined in comparison to the year-ago quarter.


North America net sales were $433 m, up $5%, despite an overall 10% decline in volume. Gum sales showed strength. Sales of Altoids and Lifesavers declined, they faced difficult comparisons versus new product launches in the year-ago period.