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Alberto Culver Reports Q4, Fiscal 2010 Financials

Posted: November 2, 2010

Alberto Culver Company has announced results for its fourth quarter and fiscal year 2010 ended September 30, 2010. For the fourth quarter, net sales increased 12.1% to $431.9 million compared to $385.2 million in the prior year quarter. On an organic basis, which excludes the effect of foreign currency fluctuations and acquisitions and divestitures, sales increased 4.9% in the current quarter. For the fiscal year, net sales increased 11.4% to $1.60 billion compared to $1.43 billion in the prior year period. On an organic basis, sales increased 4.2% in the current fiscal year.

In the U.S., sales increased 3.5% in the fourth quarter due to growth in TRESemme and Nexxus. International sales on a reported basis increased 26.7% (the net effect of foreign currency fluctuations, acquisitions and divestitures accounted for approximately 19.5% of the growth) as each international region generated organic sales growth, with Latin America and Canada being particularly strong.

The company's gross profit margin was 52.1% in the fourth quarter compared to 52.3% in the prior year quarter. The decrease in gross margin was primarily a result of elevated trade promotions, partly offset by manufacturing efficiencies. For the full fiscal year 2010, gross profit margin improved 100 basis points to 52.3% compared to 51.3% in the prior year mainly due to lower commodity costs, partially offset by higher trade promotions.

On Sept. 27, 2010, the Company entered into a definitive agreement with Unilever pursuant to which Unilever will acquire all of the outstanding shares of Alberto Culver for $37.50 per share in cash, valuing the company at approximately $3.7 billion. The transaction is structured as a merger and is subject to approval by owners holding a majority of Alberto Culver's outstanding common stock, regulatory approvals and other customary closing conditions. The merger agreement was unanimously approved by the boards of directors of both companies.

View reports on Alberto Culver’s full fourth quarter and fiscal 2010 financials here.