Colgate-Palmolive Company reported worldwide net sales rose 6.5% to $4.3 billion in Q1 2014. Operating profit decreased 15% to $634 million.
Colgate’s leading global market shares in toothpaste and manual toothbrushes remain strong at 44.3% and 33.1%, respectively, on a year-to-date basis. At press time, Colgate’s global market share in mouthwash reached a record high 17.3%, up 60 basis points versus the year ago period.
In North America, Q1 net sales increased 2.5% and unit volume increased 4.5%. Organic sales increased 3.5% during the quarter. Operating profit in North America declined 60 basis points to $216 million.
According to the company, the decrease in operating profit as a percentage of net sales was primarily due to a decrease in gross profit and an increase in selling, general and administrative expenses, both as a percentage of net sales, according to the company.
In the US, new product launches contributed to volume growth. Market share gains year to date were recorded in manual toothbrushes, mouthwash, dish liquids, liquid cleaners and fabric conditioners. In toothpaste, Colgate Optic White, Colgate Optic White Dual Action, Colgate Optic White Platinum Whiten and Protect, Colgate Total Advanced Clean and Tom’s of Maine toothpastes had strong sales during the quarter.
In manual toothbrushes, Colgate continued its brand market leadership in the US with its market share in that category reaching a record 41.9% year to date. This success was driven by strong sales of Colgate 360° Optic White Toothbrush + Built-In Whitening Pen, Colgate 360° Optic White, Colgate 360° Total Advanced Floss Tip bristles and Colgate Slim Soft manual toothbrushes.
Successful products driving volume growth in the US in other categories included Colgate Total Advanced Pro-Shield and Colgate Optic White mouthwashes, Speed Stick Gear deodorants with new DryCore technology, Softsoap brand Décor Collection liquid hand soaps, Suavitel Fast Dry fabric conditioner and Palmolive Dish & Sink dish washing liquid.