Summary
Colgate-Palmolive Company reported net sales of $4,398 million for the third quarter of 2013, a 1.5% increase over the prior year, driven by a 5.0% volume increase, partially offset by a 4.5% negative foreign exchange impact. Organic sales, excluding foreign exchange and acquisitions/divestitures, grew a healthy 6.0%. Net income attributable to the company was $656 million, with diluted EPS of $0.70, a slight increase from $0.69 in the prior year period. The company is actively managing a global restructuring program initiated in 2012, which is expected to yield significant cost savings over the next few years, though it incurred charges in the current quarter. Investments in advertising and promotional activities remain a key focus to drive brand growth.
Financial Highlights
49 data points| Revenue | $4.40B |
| Cost of Revenue | $1.81B |
| Gross Profit | $2.58B |
| SG&A Expenses | $1.55B |
| Operating Income | $1.02B |
| Net Income | $656.00M |
| EPS (Basic) | $0.71 |
| EPS (Diluted) | $0.70 |
| Shares Outstanding (Basic) | 928.10M |
| Shares Outstanding (Diluted) | 936.90M |
Key Highlights
- 1Net sales increased 1.5% to $4,398 million in Q3 2013, with organic sales up 6.0%.
- 2Diluted EPS rose to $0.70 from $0.68 in the prior year's third quarter.
- 3The company is executing a global restructuring program (2012 Restructuring Program) with ongoing charges and projected future savings.
- 4Gross profit margin improved to 58.8% from 58.4% year-over-year, driven by pricing and cost savings.
- 5Significant investments were made in advertising and promotion, with SG&A expenses as a percentage of net sales increasing.
- 6The company continues to experience challenges and manage the impact of currency devaluation and inflation in Venezuela.
- 7Shareholders received a 10% increase in the annualized common stock dividend and a two-for-one stock split was approved and effected.