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    Breaking News

    Colgate's Q3 Numbers Are In

    CEO Cook pleased with organic sales growth.

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    10.27.16
    Colgate-Palmolive Company’s worldwide net sales were $3.8 billion in third quarter of 2016, a decrease of 3.5% versus third quarter 2015. Global unit volume decreased 4.0%, pricing increased 3.0% and foreign exchange was negative 2.5%. Excluding divested businesses and the impact of the previously disclosed deconsolidation of the company’s Venezuelan operations, unit volume increased 1.5%. Organic sales grew 4.5%, according to the global oral care giant.
     
    “As expected, foreign currency headwinds continued during the third quarter, which together with the impact of the deconsolidation of the company’s Venezuelan operations resulted in the 3.5% net sales decline. In the face of continued challenging macroeconomic conditions worldwide, we are pleased to have achieved another quarter of strong organic sales growth, with every operating division contributing. The 4.5% worldwide organic sales growth was led by emerging markets where organic sales grew a strong 8.0%, despite economic challenges in several countries,” said Ian Cook, chairman, president and CEO.
     
    “Colgate’s leadership of the global toothpaste market continued during the quarter with its global market share now at 44.0% year-to-date. Our global leadership in manual toothbrushes also continued with Colgate’s global market share in that category now at 33.2% year-to-date,” noted Cook.
     
    North America Net sales increased 1.0% in third quarter 2016. Unit volume increased 1.5% with 0.5% lower pricing, while foreign exchange was even with the year ago quarter. Organic sales increased 1.0% during the quarter. In the US, new product launches are contributing to volume growth. Market share gains year-to-date were seen in toothpaste, manual toothbrushes, mouthwash, liquid hand soap, body wash, liquid cleaners and fabric conditioners. Colgate’s share of the toothpaste market strengthened to 35.7% year-to-date, up 0.3 share points versus the year ago period, driven by strong sales of Colgate Total Daily Repair, Colgate Optic White Platinum High Impact White, Colgate Sensitive Smart White and Tom’s of Maine Rapid Relief Sensitive toothpastes. In manual toothbrushes, Colgate strengthened its brand market leadership in the U.S. with its market share in that category at 41.9% year-to-date, up 0.5 share points versus the year ago period. Strong sales of Colgate 360° Enamel Health Sensitive, Colgate 360° Optic White Platinum and Colgate Total 360° 4 Zone manual toothbrushes contributed to volume growth in the quarter. Successful new products driving volume growth in the U.S. in other categories include Colgate Total Daily Repair and Colgate Kids mouthwashes, Colgate Total 360° Whole Mouth Clean battery toothbrush, Softsoap Pure foaming hand soap, Softsoap Luminous Oils and Irish Spring Signature For Men body washes and Palmolive Fusion Clean dish liquid, said the firm.
     
    In Latin America (which represents 24% of company sales) net sales decreased 13.0% in third quarter 2016. Unit volume decreased 16.0% with 9.0% higher pricing, while foreign exchange was negative 6.0%. Excluding the impact of the deconsolidation of the company’s Venezuelan operations, unit volume increased 1.5% driven by volume gains in Mexico. Organic sales for Latin America increased 10.5%. Colgate said it strengthened its leadership in toothpaste in Latin America during the quarter, driven by market share gains in Brazil, Peru, Uruguay, Paraguay, Puerto Rico, Nicaragua and Costa Rica. Strong sales of Colgate Luminous White Advanced Expert, Colgate Sensitive Pro-Alivio, Colgate Total Professional Daily Repair and Colgate Triple Action Extra Whitening toothpastes contributed to volume growth throughout the region. Colgate’s leadership in the manual toothbrush category continued throughout the region, driven by strong sales of Colgate Luminous White Advanced Toothbrush + Built-In Whitening Pen, Colgate 360° Gold and Colgate Professional Lab series manual toothbrushes.
     
    Europe net sales decreased 1.5% in third quarter 2016. Unit volume increased 4.0%, pricing decreased 2.5% and foreign exchange was negative 3.0%. Volume gains were led by Germany and the United Kingdom. Organic sales for Europe increased 1.5%. Colgate maintained its oral care leadership in Europe during the quarter, driven by toothpaste market share gains in Spain, France, Belgium, Austria, Denmark, Poland, Hungary, Czech Republic, Italy, Bulgaria, Bosnia and Latvia. Successful premium products contributing to volume gains in oral care include Colgate Max White White and Protect, Colgate Total Proof, Colgate Sensitive Pro Relief Extra Strength, Colgate Kids and elmex Sensitive Professional Repair & Prevent toothpastes, Colgate Max White Expert White Toothbrush + Built-In Whitening Pen and Colgate 360° Advanced manual toothbrushes.
     
    According to Colgate, in Europe, premium innovations contributing to volume growth in other product categories include Sanex Advanced shower oils and body balms, Palmolive Gourmet shower gels, Palmolive Sensorials line of dish liquids, Palmolive Skin Garden shower gel, bath foam, liquid hand soap, bar soap and body lotion, Sanex Men shower gel and deodorant, a range of Ajax specialist kitchen spray cleaners and Soupline Complete Care fabric conditioner.
     
    Colgate’s Asia Pacific net sales decreased 1.5% during third quarter 2016. Unit volume was even with the year ago quarter while pricing increased 0.5% and foreign exchange was negative 2.0%. Excluding divested businesses, unit volume increased 2.5%. Volume gains were led by the Philippines and India. Organic sales for Asia Pacific increased 3.0%. Operating profit in Asia Pacific increased to $230 million in the third  Successful new products including Colgate 360° Charcoal Gel, Colgate Sensitive Salt Minerals, Colgate Total Pro Breath Health, Colgate Enamel Health, Colgate Optic White Power White, Colgate Fresh Confidence Bamboo Charcoal, Colgate Sensitive Clove Essence, Colgate Naturals and Colgate MinionsTMtoothpastes contributed to volume growth in the region.
     
    Africa/Eurasia net sales increased 1.5% during third quarter 2016. Unit volume decreased 2.0%, pricing increased 10.5% and foreign exchange was negative 7.0%. Volume gains in the North Africa/Middle East region were more than offset by volume declines in South Africa. Organic sales for Africa/Eurasia increased 8.5%.
    Successful products contributing to sales in the region include Colgate Total Pro Breath Health, Colgate Optic White Lasting White and Colgate Sensitive Pro-Relief Repair & Prevent toothpastes, Colgate 360° Charcoal Gold and Colgate Slim Soft Sensitive Gum Care manual toothbrushes, Palmolive Aroma Sensations and Palmolive Naturals shower gels and Lady Speed Stick Bio Protection deodorant, said the firm.
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