Summary
Colgate-Palmolive Company's second quarter of 2014 reported flat net sales compared to the prior year, reaching $4,352 million. This stability was achieved despite a 4.0% negative impact from foreign exchange, as volume growth of 2.5% and a 1.5% increase in net selling prices helped offset this headwind. The company's organic sales, which exclude currency fluctuations, grew by a healthy 4.0%. Diluted earnings per share (EPS) increased to $0.67 from $0.60 in the prior year's second quarter, reflecting improved operational efficiencies and a favorable tax rate. The company continues to navigate challenging global macroeconomic conditions, including volatile foreign currency exchange rates and increased competition. Significant efforts are underway through the '2012 Restructuring Program' to drive efficiency and cost savings, which contributed positively to gross profit margin. The company also highlighted the significant impact of the Venezuelan economic situation, including currency devaluation and new foreign exchange regulations, which resulted in a substantial pretax loss in the first quarter of 2014. Despite these challenges, Colgate-Palmolive remains focused on its core strategies of brand building, innovation, and operational efficiency to drive long-term shareholder value.
Financial Highlights
49 data points| Revenue | $4.35B |
| Cost of Revenue | $1.80B |
| Gross Profit | $2.55B |
| SG&A Expenses | $1.51B |
| Operating Income | $980.00M |
| Net Income | $622.00M |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 916.10M |
| Shares Outstanding (Diluted) | 925.90M |
Key Highlights
- 1Net sales for the three months ended June 30, 2014, were $4,352 million, largely flat compared to $4,346 million in the same period of 2013.
- 2Organic sales (excluding foreign exchange, acquisitions, and divestitures) increased by 4.0% for the quarter, indicating underlying business strength.
- 3Diluted earnings per share (EPS) rose to $0.67 in Q2 2014, up from $0.60 in Q2 2013.
- 4Gross profit margin improved to 58.6% from 58.3% year-over-year, driven by pricing and cost savings initiatives.
- 5The company incurred a significant pretax loss of $266 million in Q1 2014 due to the remeasurement of its Venezuelan subsidiary's financial statements following currency devaluation and new foreign exchange regulations.
- 6Operating profit increased by 8% to $980 million in the second quarter of 2014.
- 7The company's '2012 Restructuring Program' is progressing, with expected cumulative pretax charges between $1,100 million and $1,250 million, aimed at driving long-term efficiency and cost savings.