MWV posts strong results helped by beauty packaging sales

Packaging and specialty chemicals provider MWV says that the strongest results came from its home, health and beauty packaging division, helping it post strong overall second quarter results.

Overall the company posted sales of $1.47bn for the quarter, which was up by 6% compared to the same period last year, while sales for the first six months of the year rose by 3.2% to reach $2.79 billion.

The company also said that its EBITDA was up by, while net income rose from $68m in the corresponding quarter last year, to reach $73m for the current quarter.

Home, health and beauty

The home, health and beauty division showed the biggest growth of the five divisions the company operates, which also includes food and beverage and industrial.

Sales for the division grew by 7.4% to reach $202m in the quarter ending in June, which was underlined by a 7% growth purely from beauty and personal care.

The company said that the growth in the beauty and personal care came from across its markets, but was particularly strong in fragrance and across end markets in Europe.

It also confirmed that it had completed the sale of its folding cartons business during the last quarter.

Cost savings and productivity investments outlook

“We are generating above-market growth and improving our bottom-line financial performance, even against the backdrop of a challenging global economy,” said John Luke, chairman and chief executive officer, MWV.

“Across the global packaging and specialty chemicals markets we have targeted, we are driving higher pricing, share gains and product mix improvement – and delivering returns from our major investments and cost reduction initiatives as well.”

Looking ahead to the third quarter, the company says that productivity investments and cost saving initiatives are likely to improve prospects for the quarter, with earnings predicted to be above the same period last year.