Wrigley earnings up 14% in quarter

by FoodBusinessNews.net Staff
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CHICAGO — Net earnings for the Wm. Wrigley Jr. Co. for the second quarter ended June 30 were up 14%, partially the result of the positive impact of currency translation and pricing. The company posted net earnings of $193,771,000, equal to 71c per share on the common stock, up from $169,813,000, equal to 62c per share, during the same quarter of the previous year.

Sales for the quarter were $1,571,291,000, up 14% from $1,377,780,000 during the same quarter of the previous year.

"Despite increased competition and relatively tougher economic conditions, we continue to produce strong near-term results, which is testimony to the strength of both our team and our brands," said Bill Wrigley, executive chairman and chairman of the board. "More importantly, we are doing so while continuing to lay the groundwork for the long-term generational growth of our business with significant innovation and marketing investments in key geographies around the world."

In the quarter, the North America segment had an operating income of $114,506,000, up 20% compared with $95,520,000 during the same quarter of the previous year. North American sales were $474,475,000, up 5% from $452,110,000 during the same quarter of the previous year.

"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 our innovative new products and packaging to the marketplace," said Bill Perez, president and chief executive officer. "Growth in the gum category was solid, with Wrigley gaining share in key geographies, including the U.S., Russia and China. 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."

For the six months, Wrigley had net earnings of $362,370,000, equal to $1.33 per share, up 16% from $312,514,000, equal to $1.13 per share, during the same period of the previous year. Net sales for the six months were $3,022,841,000, up 15% from $2,631,826,000 during the same period of the previous year.

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