Colgate-Palmolive falls short of Q1 estimates | Progresiv
Colgate-Palmolive has reported weaker-than-expected results for its fiscal first quarter, hurt by poor demand in emerging markets. 
For the three months to 31 March, net sales were up 6.5% to 4 billion dollars, although they grew just 1.5% on an organic basis, with volumes up 2%. Underlying net profit was up 9% to 654 million dollars, and underlying operating profit was up 5% to 1 billion dollars. However, underlying operating margin fell by 20bps to 25.2%, while underlying gross profit margin fell by 40bps to 60.3%.
In North America, sales and volumes were up 9% (+5% organic basis), with the group maintaining its leadership position in the US toothpaste category (35.2% market share), while growing its share of the manual toothpaste market (to 42.6%).
In Latin America, sales were up 0.5% on flat volumes, although the group recorded market share gains in several markets. Sales in Asia Pacific also grew modestly, rising by 5.5% (flat on an organic basis), with volumes up 0.5%. In Africa/Eurasia, sales were up 3.5% (-1% organic), while volumes declined by 3.5%.
However, the group recorded a strong performance in Europe, where sales rose by 16% (1.5% organic), with volumes rising by 4%. Colgate reported toothpaste market share gains in several key countries during the quarter.
CEO Ian Cook noted: “The first quarter was challenging … Encouragingly, worldwide pricing improved sequentially versus fourth quarter 2017 … 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.” (www.kamcity.com)
