P&G QUARTER ONE EARNINGS PUT COMPANY BACK ON TRACK

The Procter & Gamble Company reported first quarter (July to September 2013) earnings per share of $1.04, up eight percent versus the prior year. Net sales were $21.2 billion, an increase of two percent, including a negative two percent impact from foreign exchange. 

“P&G’s first quarter results were consistent with our plans and expectations, putting us on track to deliver our goals for the fiscal year. We have good market share momentum, a number of strong innovations coming to market over the balance of the year, and cost savings from productivity efforts that will continue to build. We remain focused on driving innovation and productivity. We continue to improve operating discipline and execution every day to create value for consumers and shareowners,” said Chairman, President, and Chief Executive Officer A.G. Lafley. 

The company, whose local product range from Pampers diapers to Ariel detergent and Gillette razors, earlier stated that it will focus on value creation, productivity, operation discipline and strategic investments in order to make the company significantly profitable in the 2014 fiscal year. 

In Africa which makes 15% of P&G’s net sales, P&G has been focusing on introducing new products while offering competitive prices to the growing market. 

Overall, the net sales increased two percent to $21.2 billion in the July – September quarter, including a negative two percentage point impact from foreign exchange. Organic sales grew four percent. Organic sales were in-line or higher versus the prior year in all reporting segments. Organic volume also grew four percent. Pricing was unchanged versus the prior year. 

P&G’s Baby, Feminine and Family Care segment where Pampers and Always fall under recorded 6% increase in due to product innovation in North America on Baby Care and Family Care, as well as strong Baby Care market growth in developing regions.

 The grooming segment which includes Gillette blades and razors organic sales increased its organic sales by 1% due to higher pricing and innovation on Blades & Razors and Appliances, which were partially offset by unit volume market contraction in developed regions. 

Fabric Care and Home Care segment (Ariel is in this category) organic sales increased 6% with strong growth in each product category. This is evidenced in the region where in Uganda Ariel is the market leader and is a few points behind the market leader in Kenya. Personal Power grew mid-single-digits driven by new distribution for Duracell batteries. 

The Company expects strong earnings growth in the second half of its fiscal year behind continued top-line growth, productivity savings that will continue to build throughout the year and more favorable foreign exchange base period comparisons.

Consumer giant changes tack to maintain market leadership

For the past twenty years in Kenya, Procter & Gamble’s (P&G) growth strategy has been to innovate and provide consumers with new products that are a class above their competitors.

However with increasing competition and changing consumer consumption habits, P&G is changing its tactics in a bid to significantly improve on its performance in the 2014 fiscal year.

The new strategy will see the company, which produces Pampers diapers, Always Sanitary pads, and Ariel detergent among others, focus on value creation, productivity, operation discipline and strategic investments will be the company’s focus areas as it builds on its fourth quarter results.

Locally, P&G will be up scaling its point of market entry activities through which they first introduce their products to Kenyan consumers. The company will also seek to strengthen and accelerate its productivity and costs savings efforts as a means of value creation to the end consumer.

“Our new tactics will ensure that we win when the consumer chooses our product at the shelf – and the second moment of truth – when the consumer uses the product at home and decides whether to buy it again.  Winning with consumers is a foundation of value creation,” said Ms. Irene Mwathi, Communications Manager.

According to a recent survey by Nielsen data conducted in Kenya, P&G is a market leader in most of the categories its products play in with its leadership brands Pampers and Always. In the diaper category, Pampers holds a 79 per cent market share ahead of its competitors Kimberly Clarks’ and InterConsumer brands.t. In the detergent category, Ariel holds a 23.8 per cent market share a few points behind Unilever’s Omo which has a 30.6 percent share while Always sanitary pads fights off competition from locally produced pads with a 59 per cent market lead.

The change in tactics were introduced with the coming of the ‘new’ P&G’s Chairman and CEO AG Lafley who is accredited for doubling sales and growing P&G’s portfolio of billion-dollar brands from 10 to 23 with a focus on consumer-driven innovation and consistent, reliable, sustainable growth during his tenure from 2000 to 2009.

Ms. Mwathi adds that the company will try and focus more on low and middle class Kenyans consumers with intentions of reallocating some of its savings to make strategic, focused investments in innovation and go-to-market capabilities which are two important sources of P&G’s competitive advantage. 

Last month, P&G announced its fourth quarter results which saw the company reported fiscal year 2013 diluted net earnings per share from continuing operations of $3.86, up 24 percent versus the prior year. Net sales were $84.2 billion, with the Central Eastern Europe Middle East & Africa contributing 15 per cent of the sales. The main sales came from the Fabric and Home care with 32 percent followed by Baby and Family care at 20 per cent of the global sales.

German Pharmaceuticals Giant Enters the East African Market

German pharmaceutical, chemical and life science company Merck has opened offices in Nairobi. The opening is part of the company’s strategy to grow its market share in East Africa.

 

Merck’s entry into the volatile regional pharma market is expected to heighten competition at a time when the cost of drugs remains beyond reach to most households and the counterfeiting menace is at its peak.

Frank Stangenberg-Haverkamp, chairman of the board of partners of E. Merck KG and member of the Merck family, said: “Merck is confident about the move. Kenya is the leading economy in East Africa. Furthermore, the country’s strategic location and its well developed business infrastructure will enable us to boost our business in the region.”

He said  Merck will also provide accessible and equitable health care in Kenya and will thus contribute to the country’s social and economic development.

Elcin Ergun, Senior Vice President of Merck Serono, Intercontinental Region explained: “We are very excited about our entry to Kenya and are fully committed to partner with the government, healthcare institutions, academics and other stakeholders to develop, and deliver solutions to increase access to health solutions. Our diabetes awareness campaigns started early this year and capacity & capability development programs kicked off in the Nairobi University are just the beginning of these programs which we will continue and broaden in time. ”

The launch event was presided over by Health Cabinet Secretary James Macharia.

 “Our ministry is especially delighted to partner with a company that is committed to providing sustainable access to high quality, safe medication and health solutions in developing countries.”

He emphasized that the ministry welcomes strategic partnerships like these and that the opening of Merck’s offices in Kenya will boost the health care sector and will lead to economic progress as it will create job opportunities and provide other resources as well.

Macharia also applauded Merck for its capacity advancement program – CAP that was launched early this year. The program aims at expanding the professional capacity in Africa in the areas of research and development, clinical research, supply chain integrity and efficiency, pharmacovigilance, community awareness and medical education for students in the University of Nairobi and beyond.

With Merck’s long experience in diabetes management, beginning 1957 with the development of Metformin, the company seeks to raise awareness of diabetes   in Africa by educating the public and supporting the health care system to prevent, diagnose and manage the condition effectively.

As a part of Merck Capacity Advancement Program, more than 1.000 medical students from the University of Nairobi will benefit from a European accredited clinical diabetes management training, which is seeking to equip them with skills to avert the diabetes epidemic.

This three year scientific educational program will be offered by the Serono Symposia International Foundation (SSIF), an independent organization providing medical education programs accredited by the European Accreditation Council for Continuing Medical Education (EACCME).

Epson Enters Direct-To-Garment T-Shirt Printing Market

Epson is targeting small to medium enterprises to grow its business with the introduction of its first direct-to-garment t-shirt printer, the SureColor SC-F2000.

With the global garment printing market expected to be worth over Shs24billion by 2014, small to medium businesses can benefit from the SureColor SC-F2000’s revenue-generating features. Combined with high performance, low maintenance and running costs, it enables businesses to offer a new t-shirt design and print service.

According to Epson Regional Sales Manager Mukesh Bector, online t-shirt shops, production t-shirt printers and even corporate users will benefit from the SC-F2000, as its ink is crack resistant and is soft against skin. Users can configure the system to suit their needs by choosing from two sets of CMYK ink for white garments or CMYK with up to four white inks for coloured garments.

 

“The printer we are introducing to market is bundled with Epson’s garment creator software which includes a cost calculation function that allows users to estimate the print cost by calculating the amount and cost of the ink used for each print job. This can be beneficial if you want to set a tax rate or discount. This design software enables designers to unleash their creativity and easily produce customised, eye-catching designs on t-shirts, caps and bags up to 25mm thick,” he said.

 Unique to the industry, this is the first system where a print-head, ink and chassis have been designed and manufactured by a single brand. The hardware and ink are designed to work together and users benefit from the reliability and high-quality output that Epson is renowned for.

Mukesh noted that as well as enjoying the new revenue stream, uses are assured that Epson has applied its years of print knowledge and know-how to deliver an eco-friendly device that excels in performance and delivers low running costs.

Featuring Epson’s durable TFP printhead, the SC-F2000 is capable of printing a single white t-shirt in 27 seconds when using dual colour mode and a dark coloured t-shirt in 111 seconds, using white and colour ink, so production is quick without sacrificing print quality.

When used in conjunction with Epson’s UltraChrome DG Ink (available in 250 or 600ml cartridges), the SureColor SC-F2000 excels on dark fabric, because it’s white ink is tough. The white ink is circulated within the system and has been designed to reduce clogging, which increases productivity, allowing deadlines to be met consistently.

The SC-F2000 offers a resolution of up to 1440x1440dpi for accurate dot shape and placement, while its wide colour gamut produces vibrant colours, sharp contours and smooth gradations. 

Despite its ability to create a lasting visual impact, Epson's UltraChrome DG ink is kind to those it comes into contact with. The eco-friendly ink has been awarded a part certification from Oeko-Tex^® Standard 100[1], which means it doesn’t contain any harmful substrates.

 The SureColor SC-F2000 will be available for purchase as from next month.

Nokia enhances user experience on its Lumia range of smartphones through the Amber software update

Nokia is enhancing the user experience on its Lumia range of smartphones with the rollout of a software update which will see the devices deliver a wide range of improved features and mobile applications. 

Some of the new features being introduced with the Nokia Lumia Amber software update include Nokia Glance Screen with the standby clock, a new FM radio player* and better imaging experience for Nokia Lumia owners.

Apart from the software update, Nokia has also introduced a SIM Applications app that will allow users to pin the SIM Application menu to the home screen on their Lumia smartphones. This will allow quick access to the M-Pesa and other applications embedded in the SIM card.

Initially, the M-Pesa menu was deeply buried in the operating system and required users to follow a long chain of interactions.

Commenting on the latest developments, Nokia East Africa Operative Products and Devices Manager, Kingori Gitahi, said the software update highlights Nokia’s commitment to constantly enrich the user experience on the Nokia Lumia smartphones. 

“Nokia Lumia smartphones running Windows Phone 8 are getting a whole lot smarter. We pride ourselves on always putting customer needs first and the new software update provides a number of significant additions and improvements to the existing features and applications like Xbox music and the Internet Explorer browser,” he said.

In terms of image processing, Gitahi pointed out that the update has significantly improved algorithms that offer better noise reduction, colour reproduction, exposure control and autofocus to every phone across the Lumia range. On the Lumia 920, controls to adjust the ISO settings of the camera from 800 to 3200 allow for even better low light performance.

The Nokia Lumia Amber Update for Windows Phone 8 devices is available in Kenya and East Africa in general and is already rolling out to all Lumia smartphones, with the exception of Lumia 520 and 720, which will be rolled out shortly. On top of the Lumia Amber update, the newly announced Nokia Pro Camera will also be available for Lumia 920 and Lumia 925.

“Perhaps one of the features that has been most requested on Nokia Lumia smartphones is Nokia Glance Screen which brings a clock to your screen when the phone is inactive, along with indicators to show battery level when running on a low battery or the phone is charging, and whether your phone is set to silent’” he said.

With the update, users can activate the Nokia Glance screen in the display and touch section in Settings by swiping left to ‘glance’. Nokia Glance screen will be available for all WP8 Lumia devices except the Nokia Lumia 520 and Lumia 625, which have a smaller display memory.

Important instructions for updating your software:

• Make sure your phone is fully charged or connected to the charger.
• Connect to a Wi-Fi network
•  Go to settings>Phone update>Check for updates
• Note that the update could take 15 to 20 minutes and you will not be able to use the phone during the update process.
• Do not interfere with the phone during the update process.

*FM radio not available for Nokia Lumia 620

REVIEW: EPSON L110 Inkjet Printer

Summary

Measuring 472 x 130 x 222mm, this affordable compact portable machine can print 27 pages per minute (black and white).

Neatly integrated ink tubes ensure smooth ink flow. A choke valve locks the ink system to prevent leaks when the printer is being carried about.

Its printing resolution is 5,760 x 1,440 dots per inch. Its sensor scans at 600 x 1,200 dots per inch within five seconds (black and white) and 10 seconds for colour.

·         Print Quality

The L110 is equipped with Epson's proprietary Micro Piezo™ print head driving a high resolution of 5760 dpi x 1440 dpi that delivers exceptional high prints for both text and images.

·         Space-saving Design

The L110 single function printer is compactly designed to take up lesser space than its predecessor,

so that you won't have to worry about finding space for it.

·         Print Speed

With an improved printing speed of up to 27 ppm for black and 15 ppm for colour, you can enjoy up to two times the performance of its predecessor.

·         Savings and Page Yield

The L110 uses Epson's genuine ink bottles to let you enjoy ultra-high page yields of up to 4,000 pages (black) at very low running costs. It also features Epson's fast ink top-up

technology for easy mess-free refills with two features:

·         Special tubes in the printer ensure smooth and reliable ink flow at all times.

·         A handy choke valve allows you to lock the ink system during transport to minimise messy leaks and ink wastage. 

·         Epson Warranty

Enjoy warranty coverage of one year or 15,000 prints, whichever comes first, for maximum value  from your printer and freedom from worries over its maintenance.

TECH SPECS

MODEL NUMBER                                            :              L110

Printing

                 

Print Method                                                   :              On-demand ink jet

Nozzle Configuration                                    :              180 nozzles Black, 59 nozzles each colour (Cyan, Magenta, Yellow)

Print Direction                                                 :              Bi-directional printing, Uni-directional printing

Maximum Resolution                                   :              5760 x 1440 dpi (with Variable-Sized Droplet Technology)

Minimum Ink Droplet Volume  :              3pl

Print Speed

Max Black Draft Text - Memo (A4):        Approx. 27 ppm / 15 ppm (Bk/Cl)

ISO 24734, A4                                                   :              Approx. 6.0 ipm / 3.0 ipm (Bk/Cl))

Max Photo Draft - 10x15cm/4x6"            :              Approx. 27 sec per photo (W/Border)

Photo Default - 10x15cm/4x6"  :              Approx. 69 sec per photo (W/Border)

Paper Handling              

Paper Feed Method                                     :              Friction feed

Number of Paper Trays                               :              1

Paper Hold Capacity

Input Capacity                                                 :              50 sheets, A4 Plain paper (75g/m2)

                                                                                              10 sheets, Premium Glossy Photo Paper

Output Capacity

30 sheets, A4 Plain paper                            :              20 sheets, Premium Glossy Photo Paper

                                                                                              (10x15cm/4x6", 13x18cm/5x7", 9x13cm/3.5x5")

Paper Size                                                         :              A4, A5, A6, B5, 10x15cm(4x6"), 13x18cm(5x7"),

                                                                                              9x13cm(3.5x5"), Letter(8.5x11"), Legal(8.5x14"),

13x20cm(5x8"), 20x25cm(8x10"), 16:9 wide size, 100x148mm, 

Envelopes: #10(4.125x9.5), DL(110x220mm), C6(114x162mm)

Maximum Paper Size                                    :              8.5 x 44"

Print Margin                                                     :              3mm top, left, right, bottom via custom settings in printer driver

Connectivity

Standard                                                                            :              USB 2.0 Hi-Speed

Printer Software

                 

Operating System Compatibility              :              Windows XP/XP Professional x64 Edition/Vista/7

                                                                                                              Mac OS X 10.5.8, 10.6.x, 10.7.x