Summary
Colgate-Palmolive Company reported strong top-line growth in the first quarter of 2011, with a 4.5% increase in net sales to $3.994 billion, driven by a combination of volume growth (2.0%) and favorable foreign exchange impacts (3.0%). However, organic sales, which exclude these factors, grew at a more modest 1.5%, indicating some pricing pressure or a challenging sales environment in certain regions. Net income attributable to Colgate-Palmolive Company significantly increased to $576 million from $357 million in the prior year, boosted by the absence of a significant one-time charge related to Venezuela's hyperinflationary accounting in the prior year's first quarter. Excluding this charge, net income would have decreased by 8% year-over-year.
Financial Highlights
48 data points| Revenue | $3.99B |
| Cost of Revenue | $1.66B |
| Gross Profit | $2.33B |
| SG&A Expenses | $1.40B |
| Operating Income | $915.00M |
| Net Income | $576.00M |
| EPS (Basic) | $0.58 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 986.80M |
| Shares Outstanding (Diluted) | 993.20M |
Key Highlights
- 1Net sales increased by 4.5% to $3.994 billion, with volume growth contributing 2.0% and foreign exchange adding another 3.0%.
- 2Net income attributable to Colgate-Palmolive Company surged to $576 million, primarily due to the absence of a $271 million one-time charge from Venezuela's hyperinflationary accounting in the prior year's quarter.
- 3Diluted Earnings Per Share (EPS) rose to $1.16 from $0.69 in the prior year, reflecting the increased net income and exclusion of the prior year's one-time charge.
- 4The Oral, Personal and Home Care segment, the company's largest, saw a 4.5% increase in net sales, driven by volume and foreign exchange, with organic sales growing 1.5%.
- 5The Greater Asia/Africa region showed robust net sales growth of 11.5% with strong volume increases, outpacing other geographic segments.
- 6The company announced an agreement to acquire the Sanex personal care brand from Unilever for approximately $950 million, which is expected to close by the end of the second quarter of 2011, subject to regulatory approval.
- 7Cash flow from operations decreased by 7% to $680 million, primarily due to lower operating profit before considering the prior year's Venezuela-related charge.