Summary
Colgate-Palmolive Company reported its financial results for the third quarter and the first nine months of 2015. For the three months ended September 30, 2015, net sales decreased by 8.5% to $3,999 million compared to the prior year, primarily driven by unfavorable foreign exchange rates (-13.0%), though this was partially offset by organic sales growth of 5.0% (volume +1.0%, pricing +3.5%). Diluted earnings per share (EPS) rose to $0.80, a significant increase from $0.59 in the same period last year, benefiting from factors like a gain on the sale of a South Pacific business and lower restructuring charges year-over-year. For the nine months ended September 30, 2015, net sales declined by 7.0% to $12,135 million, also impacted by foreign exchange, but organic sales grew by 5.0%. Diluted EPS for the nine-month period increased to $2.02, up from $1.68 in the prior year. The company continues to execute its 2012 Restructuring Program, which aims to drive efficiency and cost savings, and has expanded this program. Management highlights the ongoing challenges posed by macroeconomic conditions, particularly in Venezuela, due to currency devaluation, inflation, and governmental restrictions, which significantly impacted results in the current period. Despite these challenges, the company demonstrates resilience through organic growth in its core segments and strategic initiatives aimed at long-term shareholder value.
Financial Highlights
49 data points| Revenue | $4.00B |
| Cost of Revenue | $1.65B |
| Gross Profit | $2.35B |
| SG&A Expenses | $1.35B |
| Operating Income | $1.14B |
| Net Income | $726.00M |
| EPS (Basic) | $0.81 |
| EPS (Diluted) | $0.80 |
| Shares Outstanding (Basic) | 900.10M |
| Shares Outstanding (Diluted) | 906.90M |
Key Highlights
- 1For the third quarter of 2015, net sales decreased by 8.5% year-over-year to $3,999 million, primarily due to a significant negative foreign exchange impact of 13.0%.
- 2Organic sales, excluding foreign exchange, acquisitions, and divestitures, increased by a healthy 5.0% for the third quarter of 2015, indicating underlying business strength.
- 3Diluted Earnings Per Share (EPS) saw a substantial increase to $0.80 in Q3 2015 from $0.59 in Q3 2014, benefiting from a gain on sale of the South Pacific laundry detergent business and lower restructuring charges.
- 4The company's market share in the global toothpaste market stood at 44.7% year-to-date, an increase of 0.7 share points, and its share in manual toothbrushes was 34.5%, also up 0.7 share points, demonstrating continued category leadership.
- 5The '2012 Restructuring Program' is being expanded and extended through December 31, 2017, with an aim to drive further cost efficiencies and savings.
- 6Net cash provided by operations for the nine months ended September 30, 2015, decreased by 12% to $2,108 million compared to the prior year.
- 7Significant challenges remain in Venezuela due to currency devaluation, inflation, and governmental restrictions, impacting the company's operations and financial results.