Colgate Second-Quarter Profit Increases 7.3% on Asia, Africa Volume Growth
Colgate-Palmolive Co., the world’s largest toothpaste maker, said second-quarter profit rose 7.3 percent, helped by growth in Asia and Africa. The stock fell in early trading as sales trailed analysts’ estimates.
Net income climbed to $603 million, or $1.17 a share, from $562 million, or $1.07 a share, a year earlier, Colgate said in a statement today. That was in line with the $1.17 average of 21 analysts’ estimates compiled by Bloomberg. Sales rose 1.8 percent to $3.81 billion compared with a $3.94 billion estimate.
Colgate, which makes Palmolive dish liquid and Hill’s Pet Food, has expanded in emerging markets to boost growth. That’s also increased exposure to foreign exchange fluctuations, and the company said devaluation of Venezuela’s currency would cut full-year profit by up to 15 cents a share, instead of the ceiling of 10 cents previously announced.
Countries such as India, China and South Africa pushed second-quarter volume up 11.5 percent for the greater Asia/Africa division. North America sales increased 4.5 percent, while volume rose 5 percent, helped by new products such as Colgate Max White with Mini Bright Strips toothpastes.
Colgate fell $3.86 to $80 at 8:09 a.m. New York time. Before today the shares had gained 2.1 percent this year in New York Stock Exchange composite trading.
(Colgate will hold a conference call at 11 a.m. To listen, visit http://www.colgate.com.)
To contact the reporter on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net.
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