Colgate’s Net Sales Rose 6.5% in Third Quarter

Net sales at the Colgate-Palmolive Company increased 6.5% in the third quarter while organic sales grew 4.5% — increases that were driven by both growth and higher pricing, company officials said.

 

“We are pleased to have delivered another quarter of organic sales growth at the high end of our targeted range of 3% to 5% despite a difficult comparison in the year ago period and the impact of restricted mobility and supply chain disruptions due to COVID-19,” said company CEO Noel Wallace. “Net income and earnings per share both increased on a base business basis, despite significant increases in raw material and logistics costs. We expect the difficult cost environment to continue for the next several quarters and we remain sharply focused on our funding the growth and revenue growth management initiatives, including additional pricing.”

 

Company sales in North America and Latin America were the same at 21%. In North America, organic sales growth in oral care was partially offset by organic sales declines in personal care and home care, as consumer demand in certain categories that had benefited from COVID-19 related demand declined year-over-year.

 

In the United States, Colgate's share of the toothpaste market is 34.3% year to date and its share of the manual toothbrush market is 39.3% year to date.

 

Company Profits Broken Down by Continent 

 

In Latin America, Mexico, Brazil, Colombia and Argentina led organic sales growth. 

 

The decrease in operating profit as a percentage of net sales in both continents was primarily due to significantly higher raw and packaging material costs and higher overhead expenses, driven by higher logistics costs, partially offset by cost savings from the Company’s funding-the-growth initiatives.

 

In Europe accounted for 16% of company sales. Organic sales declined in the Filorga duty-free business and France were partially offset by organic sales growth in the United Kingdom and Germany.

 

The increase in operating profit as a percentage of net sales was primarily attributed to cost savings from the Company’s funding-the-growth initiatives, decreased advertising investment and lower overhead expenses, partially offset by significantly higher raw and packaging material costs.

 

Asia Pacific and Africa/Eurasia accounted for 17% and 16% of company sales, respectively. Organic sales declines in the Greater China region and Australia were partially offset by organic sales growth in India; organic sales declines in the North Africa/Middle East region and South Africa were partially offset by organic sales growth in Turkey and the Eurasia region.