Summary
Colgate-Palmolive Co. reported financial results for the third quarter and first nine months of 2017. For the three months ended September 30, 2017, net sales increased by 3.0% to $3,974 million, driven by a 1.5% volume increase and 1.5% positive foreign exchange impact, while net selling prices remained flat. Organic sales grew by 1.5%. Diluted Earnings Per Share (EPS) decreased to $0.68 compared to $0.78 in the prior year quarter. For the nine months ended September 30, 2017, net sales grew by 1.0% to $11,562 million, with volume declining slightly by 0.5% but offset by net selling price increases of 1.0% and positive foreign exchange of 0.5%. Organic sales increased by 0.5%. Diluted EPS for the nine-month period decreased to $1.91 from $2.04 in the prior year. The company is actively managing its "Global Growth and Efficiency Program," which involves restructuring initiatives aimed at streamlining operations and reducing costs, with an extended timeline through December 31, 2019.
Financial Highlights
49 data points| Revenue | $3.97B |
| Cost of Revenue | $1.59B |
| Gross Profit | $2.38B |
| SG&A Expenses | $1.41B |
| Operating Income | $957.00M |
| Net Income | $607.00M |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.68 |
| Shares Outstanding (Basic) | 880.70M |
| Shares Outstanding (Diluted) | 886.30M |
Key Highlights
- 1Net sales for the third quarter of 2017 increased 3.0% to $3.97 billion, driven by volume growth and favorable foreign exchange, while organic sales grew 1.5%.
- 2Diluted Earnings Per Share (EPS) for the third quarter decreased to $0.68 from $0.78 in the prior year quarter.
- 3The "Global Growth and Efficiency Program" has been extended through December 31, 2019, with projected annual savings of $560-$635 million pretax once fully implemented.
- 4Gross profit margin remained stable at 60.0% on a GAAP basis for the quarter, with non-GAAP margin at 60.4%, as cost savings from funding-the-growth initiatives offset higher raw material costs.
- 5Selling, general and administrative expenses increased by 8% in the quarter, largely due to a 19% increase in advertising investment, leading to a higher SG&A as a percentage of net sales.
- 6Operating profit for the quarter decreased 13% to $927 million, or down 4% on a non-GAAP basis, primarily due to increased SG&A expenses outweighing gross profit improvements.
- 7The company is experiencing mixed market share trends, with toothpaste share up in North America and Africa/Eurasia but down in other regions; manual toothbrush share is down in most regions.