Newell’s writing unit on a roll

 

Newell Brands’ Writing unit was the vendor’s only product group that achieved core sales growth in the second quarter.

 

The division reported Q2 2023 revenue of US$562 million compared with US$552 million 12 months ago. Newell didn’t specify the level of organic growth, but said Writing’s performance “reflected pricing actions, innovation and early order timing ahead of the back-to-school (BTS) season, partially offset by softening demand in certain categories”.

 

CEO Chris Peterson said he felt “very good” about this year’s BTS period, noting that sell-in so far has been “terrific”. This is partly due to better service levels at the Writing business, with fill rates improving from the low-80s to the mid-90s.

 

The hope is now that sell-through will be boosted by higher advertising spend and promotional activity.

 

Newell’s share price was up around seven per cent following the earnings announcement and has grown by about 25 per cent in the past month. This demonstrates investor confidence in Peterson’s new strategic initiatives announced in June. These include: a focus on Newell’s top 25 brands (which generate 95 per cent of sales) and the top ten markets outside of the US (which account for 90 per cent of international revenue); developing more efficient ‘One Newell’ global manufacturing and procurement networks; reducing the US warehouse footprint from nearly 30 to around 20 locations; and reducing the number of international distribution partners from more than 1500 to approximately 500.

 

BIC sales jump on higher prices

 

BIC’s Human Expression division grew Q2 sales by 9.5 per cent on a constant currency basis.

 

The unit reported Q2 2023 revenue of E282.9 million (US$310 million) compared with E269.7 million 12 months ago. The increase on a comparable basis was 6.7 per cent, with positive price mix in all categories the main driver.

 

For the first six months of the year, Human Expression’s sales were E460.3 million, up by 4.7 per cent on a comparable basis versus H1 2022. BIC said back-to-school sell-in in Europe and the US was “solid”, while developing markets were up in the double digits.

 

On the bottom line, pricing, mix, lower brand support and favourable net sales leverage all contributed to a year-on-year improvement in adjusted operating margin. Headwinds included exchange rates, manufacturing and raw materials costs and higher operating expenses.

 

BIC’s semi-permanent tattoo business, Inkbox, contributed to growth, notably thanks to expansion offline at a major US retailer.

 

BIC’s performance in the US was boosted by the launch of its Break-Resistant mechanical pencil, with lead it claims is 75 per cent stronger than the leading market competitor, while Inkbox grew in the low double digits.

 

Pilot Pen creates subsidiary in India

 

Pilot Pen is setting up its own manufacturing and distribution footprint in India.

 

Pilot Pen India formally began operations as a single entity on 1 July 2023, effectively ending a distribution partnership the Japanese firm established with local manufacturer Luxor almost 40 years ago.

 

Speaking to the Indian press, Pilot Corporation president Shu Itoh said having 100 per cent control would allow the company to develop the brand more effectively. As well as setting up a local production unit, Pilot is looking at rapidly expanding its distribution network over the next 18 months.

 

Currently, Pilot’s annual sales in India are approximately US$120 million. The goal is to triple this by 2028.

 

For more on these and other global news stories from OPI go to: https://www.opi.net/news/region/001-north-america/writing-stands-out-at-...