Q2 Sales Flat At Colgate

Colgate-Palmolive Company today reported worldwide net sales of $4.3 billion in second quarter 2014, even with second quarter 2013. Global unit volume grew 2.5%, pricing increased 1.5% and foreign exchange was negative 4.0%. Organic sales grew 4.0%. On the year, sales were flat at $8.6 billion.

“We are pleased to have achieved another quarter of broad-based organic sales growth and higher profitability. Gross profit margin, operating profit margin and net income as a percent to sales all increased versus the year ago period,” said CEO Ian Cook. “All operating divisions contributed to the 4.0% organic sales growth, led by the emerging markets where organic sales grew 6.5%.

Cook noted that Colgate's leading global market shares in toothpaste and manual toothbrushes remain strong at 44.4% and 33.5%, respectively, on a year-to-date basis and that the company's continues to make progress in mouthwash, with global market share in that category reaching a record high at 17.2% year to date, up 80 basis points versus the year ago period.

By region, North America net sales increased 1.0% in second quarter 2014. Unit volume increased 2.5% with 1.0% lower pricing due to increased promotional activities and 0.5% negative foreign exchange. Organic sales increased 1.5% during the quarter.

Latin America net sales decreased 4.0% in second quarter 2014. Unit volume increased 3.0% with 5.0% higher pricing and 12.0% negative foreign exchange. Volume gains were led by Venezuela, Mexico and Colombia and were partially offset by volume declines in Brazil. Organic sales for Latin America increased 8.0% during the quarter.

Europe/South Pacific net sales increased 6.0% in second quarter 2014. Unit volume increased 4.5% with 2.5% lower pricing due to increased promotional activities and 4.0% positive foreign exchange. Volume gains were led by Australia and France. Organic sales for Europe/South Pacific increased 2.5%.

Asia net sales decreased 1.5% during second quarter 2014. Unit volume increased 2.5%, with 0.5% higher pricing and 4.5% negative foreign exchange. Volume gains were led by the Philippines, India and Thailand. Organic sales for Asia increased 3.0%.