Summary
Colgate-Palmolive Company reported its financial results for the second quarter and first half of 2019. For the second quarter, net sales saw a slight decrease of 0.5% year-over-year to $3.866 billion, with organic sales growing 4.0%. Diluted earnings per share (EPS) decreased to $0.68 from $0.73 in the prior year period. The decrease in EPS was influenced by higher selling, general, and administrative expenses, partly due to increased advertising investment and overhead costs, as well as ongoing restructuring charges from the "Global Growth and Efficiency Program". For the first half of 2019, net sales decreased by 2.0% to $7.750 billion, with organic sales growing 3.5%. Diluted EPS for the first half also declined to $1.33 from $1.45 in the same period last year. The company continues to focus on its core segments: Oral, Personal and Home Care, and Pet Nutrition. A significant event announced post-quarter was the agreement to acquire the skin care business "Laboratoires Filorga Cosmétiques" for approximately $1.690 billion, expected to close in the third quarter of 2019. The company reaffirmed its commitment to driving efficiency, innovation, and shareholder returns.
Financial Highlights
50 data points| Revenue | $3.87B |
| Cost of Revenue | $1.56B |
| Gross Profit | $2.31B |
| SG&A Expenses | $1.37B |
| Operating Income | $888.00M |
| Net Income | $586.00M |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.68 |
| Shares Outstanding (Basic) | 859.40M |
| Shares Outstanding (Diluted) | 861.90M |
Key Highlights
- 1Net sales for Q2 2019 were $3.866 billion, a 0.5% decrease compared to Q2 2018, while organic sales grew by 4.0%.
- 2Diluted earnings per share (EPS) for Q2 2019 decreased to $0.68 from $0.73 in Q2 2018.
- 3For the first six months of 2019, net sales were $7.750 billion, down 2.0% year-over-year, with organic sales up 3.5%.
- 4Diluted EPS for the first six months of 2019 decreased to $1.33 from $1.45 in the prior year period.
- 5The company announced a significant agreement to acquire the "Laboratoires Filorga Cosmétiques" skin care business for approximately $1.690 billion, expected to close in Q3 2019.
- 6The "Global Growth and Efficiency Program" is in its final year, with anticipated full program charges estimated between $1.820 billion and $1.870 billion pre-tax.
- 7Operating profit margin for Q2 2019 decreased by 130 basis points to 23.0% (GAAP) compared to the prior year period.