Summary
Colgate-Palmolive Company's (CL) third-quarter and year-to-date 2018 results show a mixed performance for investors. While the company reported slight year-over-year increases in net sales and net income attributable to Colgate-Palmolive Company for the nine-month period, the third quarter itself saw a decline in net sales and operating profit. This performance was impacted by negative foreign exchange rates and increased raw and packaging material costs, which pressured gross profit margins. Despite these headwinds, the company continues to execute its "Global Growth and Efficiency Program," aiming to streamline operations and drive long-term growth. The acquisition of professional skin care businesses also contributed to volume growth in North America. Investors should note the ongoing restructuring charges and the impact of U.S. tax reform, which influenced effective tax rates and net income. The company maintains a positive outlook, focusing on innovation, efficiency, and cash flow generation to enhance shareholder value.
Financial Highlights
50 data points| Revenue | $3.85B |
| Cost of Revenue | $1.58B |
| Gross Profit | $2.27B |
| SG&A Expenses | $1.37B |
| Operating Income | $874.00M |
| Net Income | $523.00M |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.60 |
| Shares Outstanding (Basic) | 868.80M |
| Shares Outstanding (Diluted) | 871.10M |
Key Highlights
- 1Net sales for the nine months ended September 30, 2018, increased by 1.5% to $11,733 million compared to the prior year, driven by volume growth.
- 2Diluted earnings per share for the nine months ended September 30, 2018, increased to $2.05 from $1.91 in the prior year.
- 3The company acquired professional skin care businesses, Physicians Care Alliance, LLC and Elta MD Holdings, Inc., in January 2018 for approximately $730 million, contributing to volume growth in North America.
- 4Gross profit margin decreased by 100 basis points to 59.6% for the nine-month period, primarily due to higher raw and packaging material costs.
- 5The "Global Growth and Efficiency Program" is ongoing, with estimated cumulative pretax charges ranging from $1,730 to $1,885 million.
- 6The company repurchased approximately $3.9 billion in shares during the third quarter of 2018 under its new share repurchase program.
- 7Foreign exchange headwinds negatively impacted net sales, particularly in the third quarter, with a negative impact of 4.0% globally.