Fri. Nov 15th, 2019

Global news

World Wide News

Notable Stock to Watch: Colgate-Palmolive Company (NYSE:CL)

4 min read

Colgate-Palmolive Company (NYSE: CL) freshly stated worldwide Net sales of $3,928.00M in 3rd-quarter 2k19, a boost of 2.00 percent as compared to 3rd-quarter 2k18. Global unit volume turned up 3.00 percent, pricing turned up 1.50 percent and foreign exchange was negative 2.50 percent. Organic sales (Net sales apart from the impact of foreign exchange, acquisitions and divestments) turned up 4.50 percent.

Net income and Diluted earnings for each share in 3rd-quarter 2k19 were $578.00M and $0.670, respectively. Net income in 3rd-quarter 2k19 included $36.00M ($0.040 for each diluted share) of aftertax charges resulting from the Company’s Global Growth and Efficiency Program and acquisition costs mainly related to the formerly revealed acquisition of the Laboratoires Filorga Cosmétiques (“Filorga”) skin health business, which closed on September 19, 2k19.

Net income and Diluted earnings for each share in 3rd-quarter 2k18 were $523.00M and $0.600, respectively. Net income in 3rd-quarter 2k18 included $102.00M ($0.120 for each diluted share) of aftertax charges resulting from the Global Growth and Efficiency Program and related to U.S. tax reform.

Apart From charges resulting from the Global Growth and Efficiency Program in both durations, acquisition costs in 2k19 and the charge related to U.S. tax reform in 2k18, Net income in 3rd-quarter 2k19 was $614.00M, a decline of 2.0 percent as compared to 3rd-quarter 2k18, and Diluted earnings for each share in 3rd-quarter 2k19 were $0.710, a decline of 1.0 percent as compared to 3rd-quarter 2k18.

Gross profit margin was 59.00 percent in 3rd-quarter 2k19, even with 3rd-quarter 2k18. Apart From charges resulting from the Global Growth and Efficiency Program in both durations, Gross profit margin was 59.00 percent in 3rd-quarter 2k19, a decline of 20.0 basis points as compared to the year-ago quarter as higher raw and packaging material costs, which included foreign exchange transaction costs, were partially offset by cost savings from the Company’s funding-the-growth programs and higher pricing.

Selling, general and administrative costs were 36.40 percent of Net sales in 3rd-quarter 2k19 as compared to 35.60 percent of Net sales in 3rd-quarter 2k18. Apart From charges resulting from the Global Growth and Efficiency Program in both durations, Selling, general and administrative costs turned up by 30.0 basis points as compared to the year-ago quarter to 35.70 percent of Net sales in 3rd-quarter 2k19 because of turned up advertising investment, partially offset by lower overhead costs, both as a percentage of Net sales. On an absolute basis, worldwide advertising investment turned up 7.0 percent to $423.00M as compared to $395.00M in the year-ago quarter.

Operating profit reduced to $856.00M in 3rd-quarter 2k19 contrast to $874.00M in 3rd-quarter 2k18. Apart From charges resulting from the Global Growth and Efficiency Program in both durations and acquisition costs in 2k19, Operating profit was $900.00M in 3rd-quarter 2k19, even with 3rd-quarter 2k18. The operating profit margin was 21.8 percent in 3rd-quarter 2k19 as compared to 22.70 percent in 3rd-quarter 2k18. Apart From charges resulting from the Global Growth and Efficiency Program in both durations and acquisition costs in 2k19, Operating profit margin was 22.90 percent in 3rd-quarter 2k19, a decline of 50.0 basis points as compared to the year-ago quarter. This decline in Operating profit margin was because of a decline in Gross profit and a boost in Selling, general and administrative costs, both as a percentage of Net sales.

Net cash offered by operations year to date was $2,163.00M contrast to $2,194.00M in the comparable 2k18 duration. Working capital as a percentage of Net sales was negative 2.80 percent contrast to negative 3.10 percent in the year-ago duration.

Noel Wallace, President, and Chief Executive Officer commented on the 3rd-quarter results, “We are happy that our growth continued to accelerate this quarter, having achieved sequential improvement in organic sales growth for the 4th-successive quarter. The strong 4.50 percent growth was again driven by both positive volume and higher pricing.

“We are very focused on sustaining this growth momentum by continuing to innovate in our core businesses, pursue adjacent categories and expand into new markets and channels. We also continue to invest behind our brands, with our advertising investment increasing in absolute dollars and as a percent to sales as compared to 3rd-quarter 2k18.

“Colgate’s leadership of the global toothpaste market continued throughout the quarter with our global market share at 41.20 percent year to date. Our global leadership in manual toothbrushes also continued with Colgate’s global market share in that category at 31.60 percent year to date.”

Mr. Wallace continued, “As we look ahead, based on current spot rates, we continue to expect 2k19 net sales to be flat to up low-single-digits, with organic sales now expected to be up between 3.0 percent and 4.0 percent, roughly in line with year-to-date growth.

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © All rights reserved. | Newsphere by AF themes.