For the second quarter, sales rose 1.5% to $3.88 billion. Global unit volume increased 1.5%, and pricing and foreign exchange were even vs. a year ago. Organic sales increased 0.5%. Net income rose 21% to
“The second quarter was another challenging one with category growth rates remaining soft in many markets around the world and recent unfavorable movements in foreign exchange," said
Colgate’s leadership of the global toothpaste market continued during the quarter with global market share at 42.1% on June 30. The company's global leadership in manual toothbrushes also continued with Colgate’s global market share in that category at 32.3%.
“As we look ahead, while uncertainty in global markets and category growth worldwide remain challenging, we are maintaining our heightened focus on brand building and increased productivity while accelerating our change efforts," concluded Cook. "Based on current spot rates, we expect a low-single-digit net sales increase and low-single-digit organic sales growth in 2018, with sequential improvement in organic sales growth in the balance of the year."
Meanwhile, L'Oréal's first half sales declined 0.2% in the first half, profitability rose 30 basis points and the company was pleased to report double-digit gains in the Luxe and Active Ingredients divisions. First half sales were E13.39 billion ($15.57 billion at current exchange rates), which represents a 6.6% gain on a like-for-like basis and a 7% increase at constant exchange rates.
"In a beauty market which remains dynamic and is becoming more premium, L'Oréal is continuing to achieve strong growth. In lively markets, the L'Oréal Luxe and Active Cosmetics divisions have both recorded double-digit growth, driven by the power of their brand portfolios and the quality of their innovations," said Jean-Paul Agon, chairman and chief executive officer. "The Consumer Products division, especially with a robust performance at L'Oréal Paris, has recorded moderate growth, held back by an environment that is very difficult in some markets. The Professional Products division, meanwhile, has posted a slight increase in sales."
He noted that across the geographic zones, the New Markets accelerated once again, especially in Asia. North America is gradually improving, while Western Europe is affected by persistent difficulties in France, and by the slowdown in the United Kingdom.
E-commerce sales soared 36.4% n the first half and represented 9.5% of sales. Travel Retail sales jumped 27.3% during the period.
Finally, Reckitt Benckiser posted a 23% gain in first half sales to more than $6.5 billion at current exchange rates, thanks to its acqusition of Mead Johnson last year. That purchase provided a lift to its health business, but RB's home hygiene results remained, well, a bit dirty.
Sales of disinfectants and other cleaners declined 3% in the first half to $3.0 billion, as category growth remained challenging due to "continued tough pricing environment in developed markets."
The company noted that growth was broad-based across all the leading brands. Q2 saw double digit growth in