Colgate posts Q2 results
NEW YORK — Colgate-Palmolive announced on Thursday a boost in second-quarter net sales as its global market share in toothpaste and manual toothbrushes hit record highs year to date.
Net sales for the quarter totaled $4.35 billion, up 2% compared with the year-ago period. Organic sales grew 5.5%.
Net income, which included charges related to its restructuring program, totaled $561 million, or 60 cents per diluted share, for the quarter. This compares with net income of $627 million, or 65 cents per diluted share, in the year-ago period.
Excluding items in both periods, net income during the second quarter 2013 was $662 million, an increase of 3% compared with the year-ago period, and diluted earnings per share of 70 cents.
“We expect our growth momentum to continue as we progress through the year. We are pleased that our global restructuring program is on track and proceeding smoothly. We also continue to be sharply focused on our aggressive funding-the-growth programs and our strategic worldwide pricing initiatives,” stated Ian Cook, chairman, president and CEO. “Based on this, we continue to anticipate another year of strong organic sales growth and gross margin expansion in 2013. In light of the ongoing impact of the Venezuela currency devaluation and the recent volatility in foreign exchange in other countries, we now expect diluted earnings per share to grow 4.5% to 5.5% for the year, on a dollar basis, assuming average exchange rates in the balance of the year are equal to current spot rates.”
Cook also stated that Colgate’s share of the global toothpaste market strengthened to 45.4% year to date, up 0.1 share points versus year ago. Its global leadership in manual toothbrushes also strengthened during the quarter with the company global market share in that category reaching 33.3% year to date, up 0.4 share points versus a year ago.
In North America, sales rose 5% during the quarter, as organic sales also rose 5%.
In the United States, new product launches are contributing to volume growth across categories, the company stated. Market share gains year to date were seen in manual toothbrushes, powered toothbrushes, mouthwash, body washes and fabric conditioners. In toothpaste, the success of Colgate Optic White and Colgate Optic White Dual Action toothpastes helped drive market share for the Colgate Optic White brand to 5.6% year to date, up 1.0 share points versus a year ago. In manual toothbrushes, Colgate achieved brand market leadership with its market share in that category reaching a record 37.2% year to date, up 0.6 share points versus year ago, the company stated. This success was driven by strong sales of Colgate 360° Optic White, Colgate 360° Total Advanced Floss Tip bristles and Colgate Extra Clean manual toothbrushes.
New products launching in the third quarter include Colgate MaxFresh Cool Scrub and Colgate Sensitive SmartFoam with Whitening toothpastes and Colgate SlimSoft manual toothbrush.
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