Colgate-Palmolive's second quarter sales increased 2% to more than $4.3 billion. Unit volume grew 4.0%, pricing increased 1.0% and foreign exchange was negative 3.0%. Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 5.5%. Net income fell more than 10% to $561 million due to a $101 million aftertax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program, costs associated with the sale of land in Mexico and a charge associated with an existing European competition law matter.
"We are delighted that our strong growth momentum continued on both the top and bottom lines. For the fifth consecutive quarter, gross profit margin, operating profit margin and net income as a percent of sales all increased versus the year ago period," said Ian Cook, chairman, president and chief executive officer. "The strong 5.5% organic sales growth was led by the emerging markets where organic sales grew a robust 8.5%. All operating divisions achieved positive unit volume growth in the quarter."
Gross profit margin was 58.3% in second quarter 2013 versus 57.7% in the year ago quarter. Colgate's global market shares in toothpaste and manual toothbrushes are both at record highs year to date. Colgate's share of the global toothpaste market strengthened to 45.4% year to date, up 0.1 share points versus year ago. Manual toothbrush sales also strengthened during the quarter with Colgate's global market share in that category reaching 33.3% year to date, up 0.4 share points versus year ago.