Colgate-Palmolive Co. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016; Provides Earnings Guidance for the Year 2016
July 28, 2016 at 06:55 am
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Colgate-Palmolive Co. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company's net sales were $3,845 million against $4,066 million a year ago. Operating profit was $944 million against $932 million a year ago. Income before income taxes was $919 million against $926 million a year ago. Net income attributable to Colgate-Palmolive Company was $600 million against $574 million a year ago. Earnings per common share - basic and diluted were $0.67 against $0.63 a year ago. Non-GAAP income before income taxes was $978 million against $994 million a year ago. Non-GAAP net income attributable to Colgate- Palmolive Company was $631 million against $639 million a year ago. Non-GAAP diluted earnings per share were $0.70 against $0.70 a year ago.
For the six months, the company's net sales were $7,607 million against $8,136 million a year ago. Operating profit was $1,811 million against $1,792 million a year ago. Income before income taxes was $1,758 million against $1,778 million a year ago. Net income attributable to Colgate-Palmolive Company was $1,133 million against $1,116 million a year ago. Earnings per common share - diluted were $1.26 against $1.22 a year ago. Net cash provided by operations was $1,320 million against $1,223 million a year ago. Capital expenditures were $248 million against $280 million a year ago. Non-GAAP income before income taxes was $1,872 million against $1,946 million a year ago. Non-GAAP net income attributable to Colgate- Palmolive Company was $1,202 million against $1,248 million a year ago. Non-GAAP diluted earnings per share were $1.33 against $1.36 a year ago.
For the year 2016, the company expects a low to mid-single-digit net sales decline for the year due to continued currency headwinds. Despite this, the company continue to anticipate another year of solid organic sales growth in 2016, driven by a full new product pipeline across all categories and geographies. On a GAAP basis, based on current spot rates, the company are planning for a year of gross margin expansion and expect high double-digit earnings per share growth, reflecting the impact of the 2015 charge related to the deconsolidation of Venezuelan operations. The company continue to plan for a year of gross margin expansion, and continue to expect earnings per share to be flat with 2015 on a dollar basis. This reflects a double-digit increase in earnings per share on a currency-neutral basis, excluding Venezuela from 2015 and 2016 results.
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 Co. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016; Provides Earnings Guidance for the Year 2016