Colgate-Palmolive reported a drop in profit for its fiscal third quarter, hurt by increased costs for the period.
For the three months to 30 September, sales grew by 3% to 3.97 billion dollars (1.5% on an organic basis), helped by a 1.5% increase in volumes. However, underlying net profit was down 1% to 646 million dollars, despite the implementation of the company’s Global Growth and Efficiency Program.
Sales in North America were down 0.5% for the quarter (-1% organic), hurt by a 4% drop in prices, which offset a 3% increase in volumes. Sales in Latin America were up 1% (+5.5% organic), helped by a 3% rise in volumes and 2.5% increase in pricing. Sales in Asia Pacific also rose modestly, growing by 0.5% (flat on an organic basis), as did those in Eurasia (+0.5% reported, -2% organic). However, sales in Europe grew by a solid 5.5% (+1% organic).
CEO Ian Cook noted: “We are pleased that our stepped up advertising investment is indeed contributing to the acceleration of top-line growth worldwide.” Colgate-Palmolive said it now expects the GGE programme to generate charges of 1.28 billion dollars – 1.38 billion dollars, compared to earlier expectations of 1.12 billion dollars – 1.17 billion dollars. However, it also expects savings of 500 million dollars-575 million dollars annually, up from a previous forecast of 425 million dollars – 475 million dollars. (www.kamcity.com)