Cost inflation and the strong dollar seem to have a taken a toll on Colgate-Palmolive as it posted third-quarter sales and profit figures below expectations.
Colgate saw organic volumes fall 4.5 per cent as consumers switched to cheaper products and supermarket own-label. According to recent reports, the company’s operating profit fell 2.1 per cent to $947m after margin slid from 21.9 per cent to 21.3 per cent. Net sales edged up 1.0 per cent to $4.46bn, with organic growth of 7 per cent driven by an 11.5 per cent increase in prices across its various brands to offset higher costs.
Colgate noted that it retained a 39.7 per cent share of the global toothpaste market and a 31.6 per cent share of the manual toothbrush market.
“As expected, significant increases in raw and packaging material and logistics costs continued during the quarter and the negative impact from currency accelerated,” said Chief Executive Noel Wallace.
“Beyond revenue growth management and the significant pricing actions we are taking, we are also continuing our efforts around funding-the-growth and other productivity initiatives to help offset these headwinds.
“Looking ahead, despite the challenging macroeconomic environment, we intend to continue to execute against our strategy in order to drive value for all stakeholders.”
Colgate updated its full-year guidance and said it now expects sales growth in the middle of its 1 per cent to 4 per cent range, stated reports.
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