Colgate-Palmolive has reported 9% year-on-year growth in organic sales in its latest quarter, delivering 14 consecutive quarters of organic sales growth.
Net sales increased by 5.5% year-on-year during the second quarter, to $4.5 billion.
Colgate-Palmolive retained leadership in the toothpaste category with a global market share of 39.6% year to date.
With a 31.3% market share across the globe, it also continued to lead the manual toothbrush category.
Noel Wallace, chairman, president and chief executive officer of Colgate-Palmolive, commented, “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.”
Regional Performance
North America accounted for 22% of the company sales and witnessed organic growth across oral care, personal care and home care categories. Operating profit declined by 2% to $196 million.
In Europe, which generated 14% of the company’s sales, organic growth was led by Poland and France and partially offset by declines in the Filorga business.
Operating profit in the region declined by 20% to $133 million.
Latin America, which accounted for 22% of sales, reported a 4% increase in operating profit to $264 million.
Organic sales growth in the region was driven by its performance in Colombia, Brazil, Mexico and Argentina.
The Asia Pacific and Africa/Eurasia division saw operating profit decline by 18% and 9%, respectively.
Wallace commented, “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.”
Outlook
Colgate-Palmolive expects net sales growth to be at the higher end of 1% – 4% for full-year 2022, including a mid-single-digit negative impact from foreign exchange.
Organic sales growth is expected to range between 5% to 7%, the company added.
On a GAAP basis, the company has forecast a decline in gross profit margin, increased advertising investment and double-digit earnings-per-share growth.
Wallace added, “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.”
Read More: US Household Goods Makers Face Blowback On Price Hikes
Chief Technology Officer Appointment
Elsewhere, Colgate-Palmolive has appointed Stephan Habif as its new chief technology officer, effective 1 September 2022.
He will be responsible for the company’s global research and development organisation and lead the team of scientists and engineers creating innovative products and packaging that support growth of Colgate's oral care, pet nutrition, skin health and other businesses.
Most recently, Habif served as senior vice-president of research and innovation at L’Oréal and will succeed Patricia Verduin, who will retire at the end of the year after 15 years of service at Colgate.
Habif brings more than 25 years of experience in leading research and development teams in the beauty and consumer goods industry.
At L’Oréal, he was responsible for new product development for all divisions and categories in the Americas.
Previously he worked for Unilever in various R&D roles in Europe, North America and Latin America, supporting skin care, skin cleansing, hair care, deodorants, household care and other categories.
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
