Colgate Reports 4Q Sales

Colgate-Palmolive Company said its worldwide net sales were $3.8 billion in fourth quarter 2017, an increase of 4.5% versus fourth quarter 2016. Global unit volume increased 3.0%, pricing decreased 1.0% and foreign exchange was positive 2.5%. Organic sales (net sales excluding the impact of foreign exchange, acquisitions and divestments) increased 2.0%.

Net income and diluted earnings per share in fourth quarter 2017 were $323 million and $0.37, respectively.

Gross profit margin was 59.8% in fourth quarter 2017 versus 60.4% in fourth quarter 2016. Excluding charges resulting from the Global Growth and Efficiency Program in both periods, Gross profit margin was 60.4% in fourth quarter 2017, a decrease of 40 basis points versus the year ago quarter, as higher raw and packaging material costs and lower pricing were partially offset by cost savings from the company’s funding-the-growth initiatives, according to the firm.

“We finished the year with an acceleration of our top-line growth worldwide. Net sales in the fourth quarter increased 4.5% and organic sales grew 2.0%. This growth was driven by healthy volume increases across Latin America, North America and Europe,” said Ian Cook, chairman, president and CEO.

“Colgate’s leadership of the global toothpaste market continued during the quarter with our global market share now at 43.3% year to date. Our global leadership in manual toothbrushes also continued with Colgate’s global market share in that category now at 32.6% year to date.”

Cook added, “As we look ahead to 2018, while uncertainty in global markets and category growth worldwide remain challenging, we are maintaining our heightened focus on brand building and increased productivity. Based on current spot rates, we expect a mid-single-digit net sales increase and low to mid-single-digit organic sales growth in 2018, with improvement in organic sales growth versus the second half of 2017.”