Summary
Colgate-Palmolive Company's 2012 10-K report highlights a year of steady growth, with consolidated net sales increasing by 2.0% to $17,085 million. This growth was driven by a 3.0% increase in volume and a 3.0% rise in net selling prices, partially offset by a 4.0% negative impact from foreign exchange. Organic sales, excluding foreign exchange, acquisitions, and divestments, grew by a strong 6.0%, indicating robust underlying business performance. The company operates two primary segments: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care segment, accounting for the majority of sales, saw a 2.5% increase in net sales, driven by volume and pricing. The Pet Nutrition segment experienced a slight decrease of 0.5% in net sales. Geographically, approximately 80% of net sales originated from outside the U.S., with a significant portion from emerging markets, which helps diversify risk but also exposes the company to currency fluctuations and economic instability, as noted in Venezuela.
Financial Highlights
55 data points| Revenue | $17.09B |
| Cost of Revenue | $7.15B |
| Gross Profit | $9.93B |
| R&D Expenses | $259.00M |
| SG&A Expenses | $5.93B |
| Operating Income | $3.89B |
| Interest Expense | $81.00M |
| Net Income | $2.47B |
| EPS (Basic) | $2.60 |
| EPS (Diluted) | $2.57 |
| Shares Outstanding (Basic) | 952.10M |
| Shares Outstanding (Diluted) | 960.20M |
Key Highlights
- 1Colgate-Palmolive reported a 2.0% increase in consolidated net sales to $17,085 million in 2012, driven by volume and pricing, despite negative foreign exchange impacts.
- 2Organic sales grew by 6.0% in 2012, demonstrating underlying business strength excluding currency fluctuations, acquisitions, and divestments.
- 3The Oral, Personal and Home Care segment is the largest contributor to revenue, while Hill's Pet Nutrition saw a slight sales decline.
- 4Approximately 80% of net sales are generated internationally, highlighting the company's global reach and diversification, but also its exposure to foreign currency risks.
- 5The company initiated a four-year Global Growth and Efficiency Program (2012 Restructuring Program) in Q4 2012, with projected pretax charges of $1.1 to $1.25 billion and estimated annual savings of $365 to $435 million by its fourth year.
- 6Cash flow from operations remained strong at $3,196 million in 2012, supporting debt service, dividends, capital expenditures, and share repurchases.
- 7The company actively returned capital to shareholders through dividends and share repurchases, with total repurchases of $1,943 million in 2012.