Posted: October 24, 2014
Colgate-Palmolive Company reported worldwide net sales of $4,379 million in the 2014 third quarter, a decrease of 0.5% versus third quarter 2013. Global unit volume grew 2.0%, pricing increased 1.5% and foreign exchange was negative 4.0%. Organic sales (net sales excluding foreign exchange, acquisitions and divestments) grew 3.5%. Gross profit margin was 58.4% in third quarter 2014 versus 58.8% in the year ago quarter.
“All operating divisions contributed to the 3.5% organic sales growth, driven by positive unit volume growth and higher pricing,” said Ian Cook, chairman, president and CEO. “Organic sales grew 4.5% in emerging markets, despite economic challenges in certain countries.
“Colgate’s leading global market shares in toothpaste and manual toothbrushes remain strong at 44.6% and 33.4%, respectively, on a year-to-date basis. We continue to make great progress in mouthwash, with our global market share in that category reaching a record high at 16.9% year to date, up 40 basis points versus the year ago period. For 2014, we anticipate another year of solid organic sales growth.”
North America (18% of Company Sales)
North America net sales increased 2.0% in third quarter 2014. Unit volume increased 3.0% with 0.5%. Organic sales increased 2.5% during the quarter.
In the U.S., new product launches are contributing to volume growth. Market share gains year to date were seen in manual toothbrushes, mouthwash, liquid cleaners and fabric conditioners. In toothpaste, Colgate Enamel Health, Colgate Optic White, Colgate Optic White Platinum Whiten Protect, Colgate MaxFresh Cool Scrub, Colgate Sensitive SmartFoam and Tom’s of Maine toothpastes had strong sales during the quarter.
Successful products driving volume growth in the U.S. in other categories include Colgate Total Lasting White, Colgate Total Advanced Pro-Shield, Colgate Optic White and Colgate Kids mouthwashes.
Latin America (27% of Company Sales)
Latin America net sales decreased 4.5% in third quarter 2014. Unit volume increased 1.5% with 5.0% higher pricing and 11.0% negative foreign exchange. Volume gains were led by Venezuela, Mexico and Colombia, partially offset by volume declines in Brazil. Organic sales for Latin America increased 6.0% during the quarter.
Colgate’s strong leadership in toothpaste throughout Latin America continued during the quarter, with Chile and Peru achieving record high market shares year to date. Strong sales of Colgate Luminous White Advanced and Colgate Maximum Cavity Protection plus Neutrazucar toothpastes drove volume growth throughout the region. In mouthwash, Colgate’s strong market share performance continued throughout the region, driven by the success of Colgate Plax Fresh Tea and Colgate Plax 2 in 1 mouthwashes.
Products in other categories contributing to volume growth include Lady Speed Stick and Speed Stick Stress Defense deodorants.
Europe/South Pacific (20% of Company Sales)
Europe/South Pacific net sales increased 0.5% in third quarter 2014. Unit volume increased 2.5% with 2.5% lower pricing due to increased promotional activities and 0.5% positive foreign exchange. Volume gains were led by the United Kingdom and France. Organic sales for Europe/South Pacific increased 0.5%.
Colgate strengthened its oral care leadership in the Europe/South Pacific region with toothpaste share gains led by the United Kingdom, Denmark, Italy, France, Germany, Portugal, Bosnia, Serbia and New Zealand. Successful premium products driving share gains include Colgate Max White One Optic, Colgate Max White One Luminous, Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer, elmex Sensitive Plus Gentle Whitening and meridol Gentle White toothpastes.
Recent premium innovations contributing to volume growth in other product categories include Colgate Plax Deep Clean and meridol mouthwashes, Palmolive Naturals shower and bath gel for Kids, Palmolive Men and Palmolive Mediterranean Moments Olive Oil and Fig shower gels.
Asia (15% of Company Sales)
Asia net sales increased 1.0% during third quarter 2014. Unit volume increased 0.5% with 0.5% higher pricing. Foreign exchange was even with the year ago quarter. Volume gains were led by India and were partially offset by volume declines in the Greater China region. Organic sales for Asia increased 1.0%.
Colgate continued its toothpaste leadership in Asia, driven by market share gains in India, Thailand, the Philippines, Malaysia and Pakistan. Successful new products including Colgate 360° Charcoal Deep Clean, Colgate Optic White, Colgate Active Salt Healthy White and Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer toothpastes contributed to volume growth in the region.
Successful products contributing to volume growth in other categories in the region include Colgate Plax Fresh Jasmine Tea, Colgate Plax Fruity Fresh and Colgate Pro Gum Health mouthwashes and Palmolive Naturals shampoo and conditioner.
Africa/Eurasia (7% of Company Sales)
Africa/Eurasia net sales decreased 3.5% during third quarter 2014. Unit volume increased 3.5% with 1.0% higher pricing and 8.0% negative foreign exchange. Volume gains were led by Russia and South Africa and were partially offset by volume declines in the Central Asia/Caucasus region. Organic sales for Africa/Eurasia increased 4.5%.
Colgate continued its toothpaste leadership in Africa/Eurasia, driven by market share gains in Sub Saharan Africa, North Africa, Kenya, Saudi Arabia, United Arab Emirates, Kuwait, the Central Asia/Caucasus region and Ukraine. Successful products contributing to volume growth in the region include Colgate Altai Herbs, Colgate Optic White Instant and Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer toothpastes, Colgate Altai Herbs mouthwash, Palmolive Gourmet Spa Peach, Palmolive Gourmet Spa Creamy Coffee and Protex for Men shower gels and Protex African Therapy bar soap.
The complete report is available from Colgate.
Related Topics: Financials (Marketers)