Colgate reports double-digit sales and profit growth
Colgate-Palmolive has reported a robust quarter, with sales
significantly boosted by a raft of international product launches.
The company said that second quarter sales grew 13 per cent to reach $3.41bn, as unit volume growth reached 8 per cent, which the company said was backed up by a 22 per cent increase in advertising spend. Including restructuring charges of $41.7m, net profits for the quarter increased to $415.7m for the quarter, compared to $283.6m a year earlier when restructuring charges were $115.9m - a rise of 68 per cent. The figures were positively received in the financial world, where analysts had expected net sales to come in at around $3.3bn. Newly appointed chief executive Ian Cook said, "This is the third consecutive quarter of double-digit growth sales… We are especially encouraged that every operating division achieved record sales and operating profit." The company also added that Colgate's global toothpaste leadership was also extended with key gains in emerging markets such as Mexico, Brazil China, India, and Russia, with the surprising addition of France, too. Cook added that he was confident of securing further top-line growth in the coming year, stressing a full new global product pipeline supported by significant marketing campaigns. Because of this the company believes that earnings per share for the full financial year should grow at double-digit levels. Looking at the individual geographic markets, sales growth continued in the US, rising 3.5 per cent, driven by strong oral care gains, for which sales volumes increased by 7 per cent. The company also said that new product launches in the super-premium category, had continued to drive the domestic market, with significant gains in Total Advanced Clean and Max Fresh Burst toothpastes, while Irish Spring body wash for men, Nutra-Oil moisturizing body wash and Mennen Speed Stick all reporting significant gains. In Latin America sales grew by 16 per cent, marking the fourth quarter of double-digit growth, driven in particular by Mexico, Brazil, Venezuela, Argentina and Central America. Europe and South Pacific reported an increase of 17 per cent in sales, driven mainly by the UK, France, Spain, Germany, Italy and Australia, where successful product launches featured in both the sensorial and therapeutic categories. Finally, sales grew by 15.5 per cent in the Greater Asia and Pacific region, driven by strong gains in Russia, Thailand, India, Philippines, Vietnam, Turkey and South Africa.