Colgate reports double-digit growth, earnings in Q2
NEW YORK Colgate announced on Tuesday that it posted its seventh consecutive quarter of double-digit operating profit, net income and earnings per share growth.
Worldwide sales for the quarter rose 16.5 percent to $3.96 billion and unit volume rose 5 percent. The top-line growth was supported by an 18 percent boost in worldwide advertising spending to an all-time record level.
Operating profit as reported rose 17 percent compared with the year-ago period to $767 million. Excluding restructuring charges, operating profit climbed up 13 percent to an all-time record of $805.9 million.
Net income and diluted earnings per share totaled $493.8 million and 92 cents, respectively. Excluding restructuring charges, net income increased 14 percent in second-quarter 2008 to a record $523.3 million and diluted earnings per share rose 17 percent to 98 cents, also a record, the company stated.
“Higher advertising spending behind regular and new products worldwide drove market share gains across categories. Colgate’s global toothpaste leadership continues to strengthen with market share gains in many countries around the world including the United States, Mexico, Brazil, China and Russia,” stated Ian Cook, chief executive officer. “Other categories achieving global share gains include manual toothbrushes, power toothbrushes, mouth rinse, bar soaps, hand dish liquid and pet nutrition.”
In North America, sales grew 6.5 percent as unit volume rose 4.5 percent and pricing increased 1.5 percent.
In the United States, Colgate Total Advanced Clean and Colgate Total Advanced Whitening toothpastes, supported by an integrated marketing campaign featuring Brooke Shields and a professional sampling program, helped drive market share for Colgate Total toothpaste to its highest quarterly share ever at 16.2 percent. Colgate Max Fresh and Colgate Sensitive toothpastes were also strong performers in the quarter. Colgate’s share of the manual toothbrush market is at a record high of 27.8 percent year-to-date, according to the company. That is up 2.1 share points versus the year-ago period. This growth was fueled by the sales of Colgate 360, Colgate 360 Sensitive and the new Colgate 360 Deep Clean manual toothbrushes.
New products contributing to growth in the United States in other categories include Colgate 360 Sonic Power battery toothbrush, Irish Spring Moisture Blast and Irish Spring Reviving Mint body wash for men.
Introductions scheduled to begin shipping in the third quarter include Max Fresh with Mouthwash Beads, the first toothpaste infused with mini dissolvable mouthwash beads packaged in a clear tube.