Sales: $13.8 billion for oral care, personal care and household products. Corporate sales: $16 billion. Net income: $1.3 billion.
Key Personnel: Ian M. Cook, chairman, president and chief executive officer; Franck J. Moison, vice chairman; Dennis Hickey, chief financial officer; Jennifer M. Daniels, chief legal officer and secretary; Justin Skala, chief operating officer, North America, Europe, Africa/Eurasia and global sustainability; Noel Wallace, chief operating officer, global innovation & growth and Hill’s Pet Nutrition; Michael A. Corbo, chief supply chain officer; Mukul Deoras, chief marketing officer; Victoria Dolan, VP and corporate controller; Tom Greene, chief information & business services officer; Suzan F. Harrison, president, global oral care; John J. Huston, senior vice president, chief of staff; Al Lee, chief ethics and compliance officer; Daniel B. Marsili, chief human resources officer; Vinod Nambiar, president, Asia Pacific; Elaine Paik, VP and corporate treasurer; Prabha Parameswaran, president, Colgate Europe; Panagiotis Tsourapas, president, Latin America; Patricia Verduin, chief technology officer.
Major Products: Oral Care—Total Advanced, Optic White, ProClinical White toothpastes; 360°, Max White, Professional toothbrushes; Dora the Explorer, SpongeBob SquarePants, 2-in-1 children’s toothpastes; Orabase mouth pain relief; Phos-Flur rinse; Peroxyl oral cleanser; dental professional products. Personal Care—Speed Stick, Lady Speed Stick, Irish Spring deodorants; Softsoap and Irish Spring body washes; Softsoap hand soap; Irish Spring and Softsoap bar soaps; Afta men’s toiletries. Home Care—Palmolive, Ajax and Dermassage dishwashing liquids; Murphy Oil Soap, Fabuloso and Ajax household cleaners; Suavitel fabric conditioner.
New Products: Colgate Total Daily Repair and Colgate Kids mouthwashes, Colgate Optic White Express White toothpaste, Softsoap Pure foaming hand soap, Softsoap Luminous Oils and Irish Spring Signature for Men bodywashes and Palmolive Fusion Clean dish liquid.
Comments: Blame it on euro, and yen and won too, for that matter. Forex effects hurt results in 2015 and as a result, sales were nothing to smile about for Colgate-Palmolive last year. Corporate sales fell 7%, as volume (1.5%) and net selling price increases (3.0%) were more than offset by negative foreign exchange, -11.5%.
Oral care remains the dominant business at Colgate, accounting for 47% of sales last year, up from 46% in 2014. Personal care was next at 20% of sales, down from 21% and home care accounted for 19% of sales, off from 20% in 2014.
The company noted that oral, personal and home care sales fell 8% due to Forex effects of 12%. However, organic sales in the oral, personal and home care product segment increased 4.5%. The company’s share of the global toothpaste market was 44.7% for full year 2015 and its share of the global manual toothbrush market was 34.7% for full year 2015. Full year 2015 market shares in toothpaste were up in North America, Latin America, Europe/South Pacific and Africa/Eurasia and down in Asia versus full year 2014. In the manual toothbrush category, full year 2015 market shares were up in North America, Latin America and Europe/South Pacific and down in Asia and Africa/Eurasia versus full year 2014.
By region, net sales of oral, personal and home care in North America increased 1.0% in 2015 to $3.1 billion, driven by volume growth of 2.0%, which was partially offset by negative foreign exchange of 1.0%, while net selling prices were flat. Organic sales in North America increased 2.0% in 2015. The increase in organic sales in North America was driven by oral care with strong organic sales in the toothpaste and manual toothbrush categories. Personal care and home care also contributed to organic sales growth. Personal care organic sales growth was driven by gains in the shower gel category. Home care organic sales growth was due to strong organic sales in the fabric softener category. The US makes up just 25% of Colgate’s global sales.
Latin American net sales fell 9.5% to $4.3 billion. While organic sales increased more than 9%, negative Forex effects of 19.0% pummeled results. However, volume declines in Venezuela and Brazil were partially offset by volume gains in Mexico, Ecuador and Argentina.
In Europe/South Pacific, net sales fell 15.5% to nearly $2.9 billion, as volume growth of 2.0% was more than offset by net selling price decreases of 3.0% and negative foreign exchange of 14.5%. The increase in organic sales in Europe/South Pacific in 2015 versus 2014 was due to increases in oral care and personal care organic sales, which were partially offset by declines in organic sales in the home care category. According to Colgate, the manual toothbrush category contributed to the increase in oral care organic sales. The shower gel category contributed to the increase in personal care organic sales. The decrease in home care organic sales was due to a decline in organic sales in the liquid cleaners category.
Net sales in Asia fell 1.5% to $2.4 billion, as volume growth of 4.0% was more than offset by net selling price decreases of 1.0% and negative foreign exchange of 4.5%. However, organic sales in Asia grew 2.5%, as volume gains were led by the Greater China region, the Philippines and India. Colgate noted that organic sales increases were due to toothpaste and manual sales. Personal care sales were up, on the strength of shampoo sales.
Forex crushed results in Africa/Eurasia. Sales fell 17.5% in the region, as net selling price increases of 7.5% were more than offset by volume declines of 1.5% and negative foreign exchange of 23.5%. Organic sales in Africa/Eurasia grew 6.0% in 2015.
Volume declines in the Central Asia/Caucasus region and Ukraine were partially offset by volume gains in the Sub-Saharan Africa region and South Africa, according to Colgate. Organic sales rose due to strong organic sales in the toothpaste and the manual toothbrush categories. Home care organic sales also contributed to organic sales growth with gains in the fabric softener category.
Sales continued to decline through the first quarter of 2016. Oral, home and personal care sales dropped 10% to $3.5 billion. Going forward, the company realigned the geographic structure of its Europe/South Pacific and Asia reportable operating segments within the oral, personal and home care product segment. Management responsibility for the South Pacific operations was transferred from Europe/South Pacific management to Asia management.