What were the primary drivers of sales growth in this period?

Sales growth was primarily driven by a combination of volume growth (3.0% in Q3 2008), net selling price increases (6.5% in Q3 2008), and a positive foreign exchange impact (3.5% in Q3 2008). Growth was strong across most geographic regions and product categories, particularly in Oral, Personal, and Home Care, and Pet Nutrition.

How did the company manage increased material and commodity costs?

Colgate-Palmolive addressed rising material and commodity costs through a combination of strategic selling price increases and ongoing cost-saving initiatives within its businesses. While these higher costs impacted gross profit margins, the company was able to offset these effects through these measures and further operational efficiencies.

What is the status and expected impact of the 2004 Restructuring Program?

The 2004 Restructuring Program is progressing on schedule for completion by December 31, 2008. The program is estimated to incur total pretax charges between $1,050 and $1,075 million, with approximately 50%-60% resulting in cash expenditures. Once fully implemented, the program is projected to generate annual savings of $460 to $480 million pretax, enhancing future cash flows.

How is the company returning capital to shareholders?

Colgate-Palmolive is committed to shareholder returns. This period saw an 11% increase in the annualized common stock dividend to $1.60 per share. Additionally, the company repurchased shares under its 2008 stock repurchase program, authorizing the purchase of up to 30 million shares.

CL 10-Q Quarterly Report Q3 FY2008 — Revenue, Net Income, EPS

Summary

Colgate-Palmolive Company (CL) reported strong financial results for the quarter and nine months ended September 30, 2008. Net sales saw a significant increase of 13.0% in the third quarter and 15.0% year-to-date, driven by a combination of volume growth, pricing strategies, and favorable foreign exchange rates across its core segments of Oral, Personal, and Home Care, and Pet Nutrition. The company demonstrated effective cost management and operational efficiency, leading to a robust increase in operating profit and net income. Despite some macroeconomic challenges and higher material costs impacting gross margins, Colgate-Palmolive successfully navigated these headwinds through strategic pricing and ongoing cost-saving initiatives. The company also continued its commitment to shareholder returns through dividend increases and share repurchases. The ongoing restructuring program is progressing as planned and is expected to contribute to future efficiencies. Overall, the results indicate a resilient business model with strong global brand performance and effective execution of its growth strategies.

Financial Highlights

20 data points

Beta

Revenue

$3.99B

0.6% Gross Margin

Net Income

$500.00M

0.1% Net Margin

EPS (Diluted)

$0.47

Cash & Equivalents

$635.00M

Free Cash Flow

$740.60M

Financial Statements

Beta

Revenue	$3.99B
Cost of Revenue	$1.75B
Gross Profit	$2.24B
SG&A Expenses	$1.42B
Operating Income	$791.00M
Net Income	$500.00M
EPS (Basic)	$0.49
EPS (Diluted)	$0.47

Key Highlights

1Net sales increased by 13.0% to $3,988.0 million for the third quarter and by 15.0% to $11,665.8 million for the first nine months of 2008, compared to the same periods in 2007.
2Diluted earnings per share (EPS) rose to $0.94 for the third quarter and $2.72 for the first nine months of 2008, up from $0.77 and $2.43, respectively, in 2007.
3Operating profit grew by 15% to $768.4 million in the third quarter and by 14% to $2,259.1 million in the first nine months of 2008.
4The company maintained strong cash flow from operations, providing $1,757.0 million for the nine-month period, despite increased working capital and restructuring cash outflows.
5Colgate-Palmolive continued to return value to shareholders with an 11% increase in the annualized common stock dividend to $1.60 per share.
6The 2004 Restructuring Program is on schedule for completion by year-end 2008, with an estimated total pretax charge between $1,050 and $1,075 million.
7The company's geographic diversification, with significant sales growth in Latin America (21.0% in Q3) and Greater Asia/Africa (18.0% in Q3), contributed to overall strong performance.

COLGATE PALMOLIVE CO Quarterly Report for Q3 Ended Sep 30, 2008

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions