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    Breaking News

    Sales Slip at Colgate

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    10.02.17
    Colgate-Palmolive said its second quarter sales dipped 0.5% from a year ago.


    “As we look ahead, uncertainty in global markets and slowing category growth worldwide remain challenging,” admitted Colgate CEO Ian Cook. “Based on current spot rates, we continue to expect a low-single-digit net sales increase for 2017, and given our slower than expected first half, we are now planning for low-single-digit organic sales growth for 2017.”


    Cook blamed weakness in North America and challenges in Asia Pacific for the decline. Asia Pacific sales fell 5% as volume declines in India, Thailand and Australia were partially offset by volume gains in the Philippines, Vietnam and New Zealand. North American sales decreased 3.5% as organic sales fell 3.5%, primarily due to market share losses in Colgate’s dish liquid business in the US and a further slowdown in category growth in the US.


    Q2 sales were just over $3.8 billion, the slight decline in sales came from a combination of a 1% drop in unit volume, negative 0.5% in foreign exchange and a 1% decline in global unit volume. Organic sales, net sales excluding the impact of foreign exchange, acquisitions and divestments, were even with the year ago period. Gross profit rose to 60.1% in the period, up from 59.9% a year ago. There was some good news in the quarter. Colgate’s leadership of the global toothpaste market rose to 43.6% and its leading manual toothbrush share climbed to 32.8%. Further, Colgate continues to make progress on its restructuring scheme. 
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