Colgate-Palmolive Maintains Full-Year Guidance

Colgate-Palmolive (CL) reiterated its full-year guidance on Friday as it posted a decline in revenue and adjusted earnings for its fiscal second quarter which were impacted by foreign-exchange headwinds.

The company, which sells toothpaste, mouthwash, shampoo and shower gel, reported revenue of $3.87 billion in the three months ended June 30, down from $3.89 billion in the same quarter of the prior year. This was below the consensus estimate of analysts polled by Capital IQ for $3.88 billion.

The company said that the result was impacted by a negative 4.5% foreign-exchange effect. When excluding the impact of foreign exchange, acquisitions and divestments from net sales, organic sales increased by 4%.

“We have achieved another quarter of sequential improvement in organic sales growth with the strong 4% increase driven by both positive volume and higher pricing,” Noel Wallace, chief executive of Colgate-Palmolive, said. “Advertising investment increased in absolute dollars and as a percent to sales versus second quarter 2018, with increases as a percent to sales in every division.”

Broken down by business segment, oral, personal and home care revenue accounted for most of the sales but fell to $3.25 billion compared with $3.29 billion a year earlier. Sales from the pet nutrition business rose to $613 million from $592 million a year earlier.

Within the oral, personal and homecare business, Latin America sales fell to $929 million, down from $933 million a year earlier. Sales in North America were worth $846 million, up from $824 million a year earlier. The third biggest region by revenue contribution was Asia-Pacific, with sales of $646 million, down from $674 million a year earlier.

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