Summary
Colgate-Palmolive Company's 2010 10-K filing highlights a company navigating global economic challenges while maintaining market leadership in its core segments: Oral, Personal, and Home Care, and Pet Nutrition. Net sales saw a modest increase of 1.5% to $15.56 billion, driven by volume growth, though this was partially offset by negative foreign exchange impacts. The company demonstrated resilience with a slight increase in gross profit margin to 59.1% and focused on cost-saving initiatives to counter rising commodity costs and heightened competition. Geographically, Greater Asia/Africa showed strong net sales growth (13.0%), while Latin America experienced a slight decline (-1.5%) primarily due to foreign exchange headwinds. Hill's Pet Nutrition segment saw a 2.5% decrease in net sales. The company's strategic focus remains on innovation, consumer engagement, and operational efficiency, particularly in its higher-margin Oral Care, Personal Care, and Pet Nutrition businesses. Despite external pressures, Colgate-Palmolive continued its commitment to shareholder returns through consistent dividend increases and substantial share repurchases under its authorized programs. The company's strong financial position and cash flow generation are expected to support ongoing operations, debt service, dividends, and capital expenditures, positioning it to manage current market challenges and pursue long-term value creation.
Financial Highlights
53 data points| Revenue | $15.56B |
| Cost of Revenue | $6.36B |
| Gross Profit | $9.20B |
| R&D Expenses | $256.00M |
| SG&A Expenses | $5.41B |
| Operating Income | $3.49B |
| Interest Expense | $69.00M |
| Net Income | $2.20B |
| EPS (Basic) | $2.23 |
| EPS (Diluted) | $2.15 |
| Shares Outstanding (Basic) | 975.60M |
| Shares Outstanding (Diluted) | 1.02B |
Key Highlights
- 1Colgate-Palmolive reported worldwide Net sales of $15.56 billion, a 1.5% increase from the prior year, driven by a 3.0% volume growth, partially offset by a 1.5% negative foreign exchange impact.
- 2The company maintained a strong gross profit margin of 59.1% in 2010, an improvement from 58.8% in 2009, attributed to cost-saving initiatives, despite rising commodity costs.
- 3Significant geographic performance variations were noted, with Greater Asia/Africa showing robust Net sales growth of 13.0%, while Latin America experienced a 1.5% decrease due to foreign exchange impacts.
- 4Hill's Pet Nutrition segment net sales declined by 2.5% to $2.08 billion, influenced by volume decreases and net selling price reductions.
- 5The company actively returned capital to shareholders, with dividend payments increasing to $1.14 billion and executing significant share repurchases, buying back approximately 24.4 million common shares under its repurchase programs.
- 6Colgate-Palmolive highlighted its focus on innovation and brand strength to drive growth, with specific product line successes mentioned across oral care, personal care, and home care categories.
- 7The company reported a net income attributable to Colgate-Palmolive Company of $2.20 billion, or $4.31 per diluted share, impacted by a one-time charge related to hyperinflationary accounting in Venezuela.