Colgate-Palmolive reports lower-than-expected Q4 results | Progresiv
Colgate-Palmolive reported lower-than-expected sales for its fiscal fourth quarter, despite higher promotional and advertising costs. 
For the three months to 31 December, sales were up 4.5% to 3.9 billion dollars, but underlying net profit was down 1%, and underlying operating profit declined by 3%. Gross margins were also hurt, falling by 60bps to 59.8% (-40bps underlying basis), due to higher commodity costs.
Sales in North America were up 1%, with volumes growing by 4.5% helped in part by a 3.5% reduction in pricing. Meanwhile, sales in Latin America were up 4% (+2.5% organic basis), with volumes up 4%.
The company said it increased its market leadership in the toothpaste and manual toothbrush categories across both regions.
In Europe, sales grew by 13% (+4% organic), with volumes up 6%. The company grew market share in the toothpaste category in several countries (Germany, Italy, the Netherlands, Belgium and Austria), and also saw several premium products in other categories succeed.
And in Asia-Pacific, sales were up 6% (+2.5% organic), even as volumes edged up 1%. It again continued to lead the toothpaste market in the region.
Colgate admitted that the rate of organic sales growth was lower than expected, and has now forecast sales for 2018 to grow by a mid-single digit percentage, with organic sales expected to grow by low- to mid-single-digits. (www.kamcity.com)
