Overseas sales save Ales from domestic strife

By Guy Montague-Jones

- Last updated on GMT

Natural cosmetics and perfume player Ales Group has reported solid sales growth for the first half of the year thanks to success on the international front.

The France-based company, which owns the Lierac, Phyto and Caron brands, posted a 3.2 per cent increase in sales for the first six months of 2008 taking turnover to €91.5m.

International sales now represent 61 per cent of the sales figures as opposed to 59 per cent last year and this movement towards export helped make up for stagnation on the domestic market.

Domestic struggles

French sales fell 1.1 per cent over the first half of the year, which Ales blamed on falling consumption levels especially in the second quarter.

However, the company said perfume sales had been positive on home turf with a publicity campaign for Homme de Caron helping the Caron brand secure a 35 per cent sales growth.

Whether Ales Group translates higher sales into profit growth will be revealed on 29 August when the company publishes its full financial results.

Another France-based cosmetics player has also just published its financial results for the latest quarter.

Price hikes protect Rhodia

The country’s largest specialty chemicals company Rhodia struggled to defend itself in its quarterly results from substantial raw material increases and unfavorable exchange rates.

Sales volumes fell slightly as the company increased its prices to protect itself from a €78m increase in raw material and energy costs. Net sales rose 5 per cent on a like-for-like basis supported by an 8.1 per cent increase in selling prices.

The price hikes helped protect profits as the company recorded a 16 per cent rise in operating income to €115m.

Rhodia Novecare, which supplies the cosmetics industry with surfactants and other functional ingredients, reported sales of €240m for the second quarter, up 7 per cent on last year.

The company said market trends are expected to remain positive for the business allowing for further price increases.

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