- Colgate-Palmolive Company recently announced its Q2 2022 results. These are the details.
Colgate-Palmolive Company recently announced its Q2 2022 results. These are the highlights.
— Net sales increased 5.5%; Organic sales increased 9.0% with growth in every division and all four categories
— GAAP EPS declined 13% to $0.72; Base Business EPS declined 10% to $0.72
— GAAP Gross profit margin and Base Business Gross profit margin* both decreased 300 basis points to 57.0%
— Net cash provided by operations was $914 million for the first six months of 2022
— Colgate’s leadership in toothpaste continued with its global market share at 39.6% year to date
— Colgate’s leadership in manual toothbrushes continued with its global market share at 31.3% year to date
— The company raised its organic sales growth guidance for the full year of 2022 to 5% to 7%
Based on current spot rates:
— The company still expects net sales growth to be at the higher end of 1% to 4%, now including a mid-single-digit negative impact from foreign exchange.
— The company now expects organic sales growth to be in the 5% to 7% range.
— On a GAAP basis, the company still expects a decline in gross profit margin, increased advertising investment, and double-digit earnings-per-share growth.
— On a non-GAAP (Base Business) basis, the company still expects a decline in gross profit margin, increased advertising investment and a mid-single-digit earnings-per-share decline.
“We are very pleased to have delivered our 14th consecutive quarter of organic sales growth at or above our targeted range of 3% to 5%. Net sales increased 5.5% and organic sales grew 9.0%, a significant acceleration versus the first quarter. Our focus on premium innovation, brand building and digital capabilities drove broad-based organic sales growth, with growth in every division and all four of our categories, including double-digit organic sales growth in oral care and pet nutrition.”
“We are especially encouraged by the increase in our global toothpaste market share year to date led by share growth in the US where our focus on more premium innovation is driving share gains.”
“As expected, significant increases in raw and packaging material and logistics costs continued during the quarter and currencies remained volatile in many parts of the world. We acted boldly on pricing and are accelerating our revenue growth management plans, including additional pricing, in the balance of the year. We are also increasing our efforts around funding-the-growth and other productivity initiatives to help offset these headwinds.”
“Our solid results this quarter, despite significant headwinds from raw materials, foreign exchange and the broader macro environment, demonstrate that our strategies are working. We will continue to deliver impactful innovation that provides value to our customers and consumers as we work to offset these headwinds and deliver sustainable, profitable growth over the long term.”
—Noel Wallace, Chairman, President and Chief Executive Officer
