Colgate-Palmolive Company Announces Unaudited Consolidated Results for the Three Months Ended March 31, 2018; Provides Earnings Guidance for the Full Year 2018
April 27, 2018 at 06:55 am EDT
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Colgate-Palmolive Company announced unaudited consolidated results for the three months ended March 31, 2018. For the three months, the company reported net sales were $4,002 million compared to $3,762 million for the same period a year ago. Operating profit was $983 million compared to $912 million for the same period a year ago. Income before income taxes was $924 million compared to $862 million for the same period a year ago. Net income attributable to Colgate-Palmolive Company was $634 million or $0.72 per basic and diluted earnings per share compared to $570 million or $0.64 per basic and diluted earnings per share for the same period a year ago. Net cash provided by operations was $616 million compared to $691 million for the same period a year ago. Capital expenditure was $118 million compared to $121 million for the same period a year ago. Non-GAAP income before income taxes was $952 million compared to $908 million for the same period a year ago. Non-GAAP net income attributable to Colgate-Palmolive Company was $654 million or $0.74 per diluted earnings per share compared to $601 million or $0.67 per diluted earnings per share for the same period a year ago. Non-GAAP operating profit was $1,007 million against $957 million a year ago.
Based on current spot rates, the company expects a mid-single-digit net sales increase and low-single-digit organic sales growth in 2018, with sequential improvement in organic sales growth in the balance of the year. On a GAAP basis, based on current spot rates and including the impact of the Global Growth and Efficiency Program, the company is planning for a year of gross margin expansion and expects double-digit earnings per share growth to be around 10%. Excluding charges resulting from the Global Growth and Efficiency Program and the one-time charge related to U.S. tax reform in 2017, based on current spot rates, are planning for a year of increased operating cash flow, gross margin expansion, increased advertising investment and low-double-digit earnings per share growth. The company expects tax rate to be in the range of 26% to 27% in 2018, GAAP earnings per share to be at double digits for the year. On a GAAP basis, the company expects gross margin to be up 75 to 125 basis points in 2018.
Colgate-Palmolive Company is one of the worldwide leaders in the manufacturing and marketing of cleaning and hygiene products. The group also products and sells pet food (dogs and cats). Net sales break down by family of products as follows:
- hygiene and cleaning products (78%): oral hygiene (toothpaste, toothbrushes, mouthwashes, etc.; Colgate brand), body care (soaps, shower gels, shampoos, conditioners, deodorants, shaving products, etc.; Palmolive, Speed Stick, Softsoap, etc.), household care, and linen care (dishwashing liquids, detergents, stain removers, fabric softeners, bleach, etc.; Palmolive, Ajax, Soupline, Suavitel, etc.). Net sales are distributed geographically as follows: North America (25.9%), Latin America (30.6%), Asia-Pacific (18.3%), Europe (18.1%), Africa and Eurasia (7.1%);
- cat and dog foods (22%; Hill's): world leader.
Colgate-Palmolive Company Announces Unaudited Consolidated Results for the Three Months Ended March 31, 2018; Provides Earnings Guidance for the Full Year 2018