04.17.03
Colgate-Palmolive delivered record profits growth for the first quarter on Thursday driven by strong sales of new products such as Colgate Simply White, a clear gel to whiten teeth. The group behind brands such as Ajax cleaning liquid and Speed stick deodorant, said net profits rose 12% to $324 million on sales up 7% to $2.35 billion from $2.2 billion in the same period last year. Colgate said the sales increase was the largest in seven years. Earnings per share were up 14% at $0.56 from $0.49.
Reuben Mark, chairman and chief executive, said the double-digit profit growth and record gross profit margin--up by 50 basis points to 55.3%--had helped fund investments in a range of new products such as Colgate Total Advanced Fresh toothpaste and Palmolive dishwipes. Colgate said its after tax return on capital rose 440 basis points on the previous year, hitting 35.3%.
Thursday's results come amid growing competition from Colgate's arch-rival Procter & Gamble. But Colgate seems to be more than matching its rival, responding to P&G's introduction of teeth-bleaching strips last year, with its own lower-priced Simply White gel.
Reuben Mark, chairman and chief executive, said the double-digit profit growth and record gross profit margin--up by 50 basis points to 55.3%--had helped fund investments in a range of new products such as Colgate Total Advanced Fresh toothpaste and Palmolive dishwipes. Colgate said its after tax return on capital rose 440 basis points on the previous year, hitting 35.3%.
Thursday's results come amid growing competition from Colgate's arch-rival Procter & Gamble. But Colgate seems to be more than matching its rival, responding to P&G's introduction of teeth-bleaching strips last year, with its own lower-priced Simply White gel.