Higher prices boost 3Q profits for Colgate
The oral care specialists said that worldwide sales increased by 1.5 percent compared to the same period last year, to reach $4.0bn, while net profits climbed 18 percent to $590m.
The sales figure beat both the company’s and analysts’ expectations, with a poll conducted by Thomson Reuters showing that analysts had on average forecast net quarterly sales of $3.94bn, a figure that would have represented a slight drop.
The company said that it managed to increase its sales during the quarter, despite an average 5 percent increase in its retail prices as well as unfavorable currency exchange rates.
BRIC economies fuel growth
Colgate said that its results had revealed strong growth in its mainstay toothpaste division in the US, Mexico and all four of the BRIC economies – Brazil, Russia, India and China.
Likewise, overall sales grew by 3 percent in the US, its largest market, representing 19 percent of group sales.
In a press statement CEO Ian Cook highlighted the fact that organic sales had grown by 7 percent during the quarter, which he said was attributable to both higher volumes and pricing.
Increasing global market share
"Colgate’s global toothpaste leadership strengthened to 45.1 percent during the quarter with market share gains in key countries around the world,” he said.
Although it has not made any specific forecasts for the financial year ahead, the company believes it will be able to continue with its unbroken run of industry-leading growth.
“While our 2010 budget process is still in its initial stages, we anticipate another year of double-digit earnings per share growth in 2010," Cook added.
