Summary
Colgate-Palmolive Company's 2011 10-K filing highlights a year of steady growth driven by volume increases and strategic acquisitions, particularly the Sanex personal care business. The company continues to benefit from its strong global presence, with approximately 80% of net sales generated outside the U.S., including a significant portion from emerging markets. Despite facing challenges such as foreign currency fluctuations, volatile commodity costs, and intense competition, Colgate-Palmolive demonstrated resilience, supported by its robust "funding-the-growth" initiatives aimed at cost savings and efficiency. The company's core segments, Oral, Personal and Home Care, and Pet Nutrition, performed well, with notable contributions from key brands and geographic regions. Financially, the company maintained strong operational cash flow, which supported its capital allocation strategies, including dividends and share repurchases. While certain one-time charges and integration costs, particularly related to the Sanex acquisition and restructuring efforts, impacted reported net income, the underlying operational performance remained solid. Management expressed confidence in the company's strategic initiatives and financial position to navigate future economic uncertainties and continue delivering shareholder value.
Financial Highlights
55 data points| Revenue | $16.73B |
| Cost of Revenue | $7.14B |
| Gross Profit | $9.59B |
| R&D Expenses | $262.00M |
| SG&A Expenses | $5.76B |
| Operating Income | $3.84B |
| Interest Expense | $59.00M |
| Net Income | $2.43B |
| EPS (Basic) | $2.49 |
| EPS (Diluted) | $2.47 |
| Shares Outstanding (Basic) | 976.70M |
| Shares Outstanding (Diluted) | 984.10M |
Key Highlights
- 1Worldwide Net sales increased by 7.5% to $16,734 million in 2011, driven by 3.5% volume growth and a 3.0% positive foreign exchange impact.
- 2The acquisition of the Sanex personal care business contributed 1.0% to worldwide Net sales and volume growth in 2011.
- 3Oral, Personal and Home Care segment sales grew 8.0%, while Hill's Pet Nutrition segment sales increased by 4.5%.
- 4Gross profit margin slightly decreased to 57.3% from 59.1% in the prior year, primarily due to higher raw and packaging material costs.
- 5Operating profit increased by 10% to $3,841 million, demonstrating operational leverage despite some one-time charges.
- 6Net income attributable to Colgate-Palmolive was $2,431 million, or $4.94 per diluted share, impacted by business realignment costs and acquisition-related expenses.
- 7The company repurchased 20.4 million common shares under its share repurchase programs in 2011, demonstrating a commitment to returning capital to shareholders.