Colgate-Palmolive disappoints with Q4 results, forecast | Progresiv
Colgate-Palmolive reported weaker-than-expected results for its fiscal fourth quarter and disappointed investors with its forecast for the 2019 fiscal year, citing higher input costs and a stronger US dollar. 
For the fourth quarter, net sales were down 2% to $3.81bn while adjusted net profit was down 10% to 936 million dollars and adjusted net profit declined by 3% to 638 million dollars.
On an organic basis, sales in North America edged up 0.5% but volumes were down 2%, although the company retained the top spot in toothpaste market (34.8% share) and increased its leadership position in the manual toothbrushes market (41.5% share).
In Latin America, sales were up 1% on an organic basis, helped by market share gains in Guatemala, Dominican Republic, Panama, Chile, El Salvador and Nicaragua. Sales also grew by 1% in Europe, helped by growth in countries such as France, Italy, Greece, the Netherlands, Denmark and Belgium. However, in the Asia-Pacific region, sales were down 1% on an organic basis.
For 2019, Colgate-Palmolive said it expects a low single-digit in profits, while net sales are likely to be flat or slightly higher (although they are expected to grow by 2%-4% on an organic basis).
The company said it is “planning for increased investment behind our brands, higher pricing and strong innovation, led by the relaunches of Colgate Total and Hill’s Science Diet and our continued focus on naturals. We are also planning to invest in expanding our portfolio offerings by bringing brands like elmex and meridol into new markets and by broadening our e-commerce offerings, including direct to consumer … We also plan to continue to increase our investment behind our professional skin care businesses, Elta MD and PCA Skin.” (www.kamcity.com)
