Summary
Colgate-Palmolive Company's first quarter 2019 results, filed on April 25, 2019, showed a slight decrease in net sales to $3.88 billion from $4.00 billion in the prior year's quarter, largely due to unfavorable foreign exchange impacts. Despite this, organic sales grew by 3.0%, driven by a 1.0% volume increase and a 2.0% rise in net selling prices, indicating underlying business strength. Net income attributable to Colgate-Palmolive Company declined to $560 million ($0.65 per diluted share) from $634 million ($0.72 per diluted share) in the first quarter of 2018. This decline was influenced by higher raw and packaging material costs and increased advertising investment, partially offset by cost savings initiatives and a slight decrease in selling, general and administrative expenses. The company continues to execute its Global Growth and Efficiency Program, which is in its final year and aims to streamline operations and reduce costs.
Financial Highlights
50 data points| Revenue | $3.88B |
| Cost of Revenue | $1.60B |
| Gross Profit | $2.29B |
| SG&A Expenses | $1.36B |
| Operating Income | $879.00M |
| Net Income | $560.00M |
| EPS (Basic) | $0.65 |
| EPS (Diluted) | $0.65 |
| Shares Outstanding (Basic) | 862.00M |
| Shares Outstanding (Diluted) | 863.20M |
Key Highlights
- 1Net sales decreased by 3.0% to $3.88 billion in Q1 2019 compared to $4.00 billion in Q1 2018, primarily due to a 6.0% negative foreign exchange impact.
- 2Organic sales (excluding foreign exchange, acquisitions, and divestitures) increased by 3.0%, driven by 1.0% volume growth and 2.0% net selling price increases.
- 3Diluted Earnings Per Share (EPS) decreased to $0.65 in Q1 2019 from $0.72 in Q1 2018.
- 4Gross profit margin decreased to 58.9% from 60.2%, mainly due to higher raw and packaging material costs, partially offset by cost savings and pricing.
- 5Selling, general and administrative expenses as a percentage of net sales increased slightly to 35.1% from 34.8%, driven by increased advertising investment.
- 6The company's Global Growth and Efficiency Program is in its final year, with expected annual savings of $590-$635 million pretax.
- 7Hill's Pet Nutrition segment showed strong performance with a 3.0% increase in net sales and 6.0% organic sales growth.