Colgate-Palmolive Company Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Sales Guidance for the Fourth Quarter and Earnings Guidance for the Full Year of 2018
October 26, 2018 at 06:55 am EDT
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Colgate-Palmolive Company reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported net sales of $3,845 million compared to $3,974 million a year ago. Operating profit was $874 million compared to $957 million a year ago. Income before income taxes was $820 million compared to $900 million a year ago. Net income attributable to the company was $523 million compared to $607 million a year ago. Diluted earnings per share were $0.60 compared to $0.68 a year ago. Non-GAAP operating profit was $899 million compared to $1,004 million a year ago. Non-GAAP income before income tax was $846 million compared to $958 million a year ago. Non-GAAP net income attributable to the company was $625 million compared to $646 million a year ago. Non-GAAP diluted earnings per share were $0.72 compared to $0.73 a year ago.
For the nine months, the company reported net sales of $11,733 million compared to $11,562 million a year ago. Operating profit was $2,803 million compared to $2,747 million a year ago. Income before income taxes was $2,632 million compared to $2,591 million a year ago. Net income attributable to the company was $1,794 million compared to $1,701 million a year ago. Diluted earnings per share were $2.05 compared to $1.91 a year ago. Net cash provided by operations was $2,194 million compared to $2,295 million a year ago. Capital expenditures were $321 million compared to $382 million a year ago. Non-GAAP operating profit was $2,910 million compared to $2,980 million a year ago. Non-GAAP income before income tax was $2,747 million compared to $2,837 million a year ago. Non-GAAP net income attributable to the company was $1,952 million compared to $1,886 million a year ago. Non-GAAP diluted earnings per share were $2.23 compared to $2.12 a year ago.
For 2018, on a GAAP basis, based on current spot rates and including the impact of the Global Growth and Efficiency Program, the company expects lower gross margin and double-digit earnings per share growth versus 2017. Excluding charges resulting from the Global Growth and Efficiency Program, charges related to U.S. tax reform and the benefit from a foreign tax matter in 2018, based on current spot rates, the company is planning for a year of continued strong operating cash flow, lower gross margin, sustained advertising investment and 3-4% earnings per share growth versus 2017.
Based on current spot rates, for the 2018 fourth quarter the company expects a low-single-digit net sales decrease due to foreign exchange and low-single-digit organic sales growth.
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 Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Sales Guidance for the Fourth Quarter and Earnings Guidance for the Full Year of 2018