Wrigley reports 14 Percent Gain on Record Quarterly Sales

The Wm. Wrigley Jr. Company announced a 14 percent gain in second quarter sales versus a year ago to a record $1.57 billion, the Company s highest sales quarter ever. The sales increase primarily reflected the positive impact of currency translation and pricing, in combination with one percent growth in worldwide shipments. Net earnings for the quarter of $0.70 per diluted share were up 15 percent from the year ago period. "All major regions contributed to our sales gain in the quarter, and we are looking to build on that going forward as we continue to ramp up our investment in brand support and roll out innovative new products and packaging to the marketplace. Growth in the gum category was solid, with Wrigley gaining share in key geographies, including the U.S., Russia and China," said President and Chief Executive Officer Bill Perez. "At the same time, we are maintaining our focus on operational efficiency, leading to improved financial metrics despite inflationary pressure, with only modest growth in operating expenses and continued improvement in gross margins."
In EMEAI (principally Europe), sales were $783 million, up $111 million or 17 percent versus a year ago, with just under three-quarters of the gain attributable to favorable currency translation. Selected pricing actions, principally in Eastern Europe, accounted for most of the remaining sales gain, with a one percent overall increase in volume. Russia and Ukraine continued to lead the growth in the region with strong double-digit sales gains. Despite tough year-ago comparisons, Poland and Germany recorded solid gains, moderated by less vigorous results in Spain. In the U.K., Wrigley s share trends continued to be positive through the first half of 2008, although the overall category has softened relative to the high level of marketplace activity a year ago. Sales increased nearly $59 million or 25 percent in Asia/Pacific to $290 million, with about half the gain due to volume growth and the other half due to the positive impact of currency translation. China continued to drive the region s growth, with strong double-digit shipment and sales growth across its diverse product portfolio. Similar shipments and sales increases across the countries of South Asia -- including Vietnam, Indonesia, Malaysia and Thailand -- solidified the region s results. North America net sales were up five percent to $474 million, although volume was off about five percent, reflecting the impact of pricing changes that began during the last part of the year-ago quarter.