Summary
Colgate-Palmolive Co. (CL) reported its first-quarter 2010 financial results, showing a 9.5% increase in worldwide net sales to $3.83 billion compared to the prior year, driven by a 6.0% volume growth and a 3.5% positive foreign exchange impact. The company highlighted strong performance in its Oral, Personal and Home Care segment, which saw a 10.5% net sales increase, with robust volume growth across its geographic regions, particularly in Latin America and Asia/Africa. However, net income attributable to Colgate-Palmolive Company and diluted earnings per share declined to $357 million and $0.69, respectively, down from $508 million and $0.97 in the first quarter of 2009. This decline was significantly impacted by a one-time $271 million charge related to the transition to hyperinflationary accounting in Venezuela. Excluding the Venezuela-related charge, operating profit increased by 17% and net income attributable to Colgate-Palmolive Company rose by 24%, demonstrating the underlying strength of the company's core operations. The company also announced a 20% increase in its annualized common stock dividend to $2.03 per share and a new share repurchase program, signaling a commitment to returning value to shareholders. Despite the reported net income decrease, the company's strategic focus on innovation, cost efficiencies, and market leadership, coupled with broad geographic diversification, positions it to navigate challenging global economic conditions and continue long-term value creation.
Financial Highlights
44 data points| Revenue | $3.83B |
| Cost of Revenue | $1.56B |
| Gross Profit | $2.27B |
| SG&A Expenses | $1.35B |
| Operating Income | $678.00M |
| Net Income | $357.00M |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 987.40M |
| Shares Outstanding (Diluted) | 1.04B |
Key Highlights
- 1Worldwide net sales increased by 9.5% to $3.83 billion in Q1 2010, driven by 6.0% volume growth and 3.5% favorable foreign exchange.
- 2Net income attributable to Colgate-Palmolive Company decreased to $357 million from $508 million in the prior year's quarter, largely due to a $271 million one-time charge related to Venezuela's hyperinflationary accounting transition.
- 3Excluding the Venezuela charge, operating profit increased by 17% and net income attributable to Colgate-Palmolive Company rose by 24%, indicating strong operational performance.
- 4Diluted earnings per share decreased to $0.69 from $0.97, primarily due to the Venezuela charge. Excluding this charge, EPS would have been $1.21.
- 5The company increased its annualized common stock dividend by 20% to $2.03 per share and authorized a new share repurchase program of up to 40 million shares.
- 6The Oral, Personal and Home Care segment showed robust growth, with net sales up 10.5%, driven by strong volume gains in Latin America and Greater Asia/Africa.
- 7Gross profit margin improved to 59.2% from 57.5% due to lower raw material costs and cost-saving initiatives.