Colgate Posts Q4 Sales Up 6.5%, Record Results

Colgate-Palmolive Company reported its eighth consecutive year of double-digit earnings per share growth for the year ended Dec. 31, 2003. Executives said operating profit, gross profit and net profit margins all reached record highs for both the fourth quarter and full year 2003. This is Colgate’s 31st consecutive quarter of increased gross profit, net income and earnings per share as well.

Worldwide dollar sales rose 6.5% and operating profit climbed 8% during the fourth quarter. Gross profit margin increased 20 basis points to 54.8% in the fourth quarter, which was aided by the launch of Colgate Simply White tooth whitening gel in the U.S. Worldwide toothpaste unit volume including North America grew 5%.

Net income increased 9% to a record $372.1 million for the fourth quarter and diluted earnings per share increased 10%. During the quarter the company completed the sale of its European laundry detergent brands.

For the full year 2003, worldwide dollar sales rose 6.5% to $9.9 billion, an all-time record, global unit volume grew 3.5% and operating profit increased 8%. Net income rose 10% to a record $1,421.3 million and diluted earnings per share increased 12%, also a record.

Reuben Mark, chairman and chief executive officer commented, “In December we sold our European detergent brands and announced the acquisition of GABA Holding AG, a leading European toothpaste company. These important moves are consistent with our global strategy of extreme focus and investment in our high margin, fast growing oral and personal care businesses, while de-emphasizing heavy-duty detergents.

“We are optimistic that our global ‘Funding the Growth’ programs, accelerated new product activity and investment in market share growth in key countries around the world all bode well for another record year on both the top and bottom lines in 2004,” he added.