Colgate Reports 2013 Results

Colgate-Palmolive Company’s worldwide net sales were $4.3 billion in fourth quarter of 2013, an increase of 2.0% versus the fourth quarter of 2012. Global unit volume grew 6.5%, pricing was even with the year ago quarter and foreign exchange was negative 4.5%. Organic sales (net sales excluding foreign exchange, acquisitions and divestments) grew 6.5%, according to the company.

Net income in fourth quarter was $564 million, which included $133 million of aftertax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program, a charge associated with an existing European competition law matter and costs associated with the sale of land in Mexico.
Gross profit margin was 58.9% in fourth quarter 2013 versus 58.4% in the year ago quarter.

For the full year 2013, worldwide net sales were $17.42 billion, up 2.0% versus full year 2012. Global unit volume grew 5.0%, pricing increased 1.0% and foreign exchange was negative 4.0%. Organic sales grew 6.0%, according to Colgate.

Net income for 2013 was $2.241 billion.

“We are delighted to have ended the year with another quarter of strong growth on both the top and bottom lines,” said Ian Cook, chairman, president and CEO. “For the eleventh consecutive quarter, operating profit, net income and diluted earnings per share all increased versus the year ago period.”

According to Cook, the strong 6.5% organic sales growth was led by the emerging markets, “where organic sales grew a robust 10.5%. Our strong top-line momentum should continue into 2014, fueled by new products across all categories and in all geographies.”

Cook added, “Colgate’s leading global market shares in toothpaste and manual toothbrushes remain strong at 44.9% and 32.8%, respectively, on a year-to-date basis. We continue to make great progress in mouthwash as well, with our global market share in that category reaching a record high at 17.0% year to date, up 130 basis points versus prior year.”
He described the firm’s 2012 restructuring program as being “on track and proceeding smoothly.”