- Colgate-Palmolive Company recently announced its second quarter 2022 results. Those are the details.
Colgate-Palmolive Company recently announced its second quarter 2022 results. These are the highlights.
— Net sales increased by 5.5%; Organic sales increased 9.0% with growth in every division and in all four categories
— GAAP EPS decreased 13% to $0.72; Core EPS from operations decreased 10% to $0.72
— GAAP gross profit margin and core gross profit margin* both decreased by 300 basis points to 57.0%
— Net cash provided by operations was $914 million for the first six months of 2022
— Colgate leadership in toothpaste continues with global market share at 39.6% year-to-date
— Colgate’s leadership in manual toothbrushes continues with 31.3% global market share year-to-date
— The company raised its full-year 2022 organic sales growth forecast from 5% to 7%
Orientations for the year 2022
Based on current spot rates:
— The company still expects net sales growth to be in the upper 1% to 4% range, now including a negative mid-single digit currency impact.
— The company now expects organic sales growth of between 5% and 7%.
— On a GAAP basis, the company still expects a decline in gross profit margin, an increase in advertising investments and double-digit growth in earnings per share.
— On a non-GAAP (Base Business) basis, the company still expects a decline in gross profit margin, an increase in advertising spend and a mid-single-digit decline in earnings per share.
“We are very pleased to have achieved our 14th consecutive quarter of organic sales growth at or above our target range of 3% to 5%. Net sales increased by 5.5% and organic sales by 9.0%, a significant acceleration compared to the first quarter. Our focus on premium innovation, brand building and digital capabilities has driven organic sales growth at scale, with growth in every division and across our four categories, including double-digit organic growth sales in oral care and pet nutrition.
“We are particularly encouraged by the increase in our global toothpaste market share since the beginning of the year, thanks to market share growth in the United States, where our focus on more premium innovation is generating market share gains.
“As expected, significant increases in raw material and packaging and logistics costs continued in 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 incremental pricing, for the remainder of the year.We are also increasing our efforts on growth financing and other productivity initiatives to help offset these headwinds.
“Our strong results this quarter, despite significant headwinds from commodities, exchange rates and the broader macroeconomic environment, demonstrate that our strategies are working. We will continue to deliver impactful innovations that bring value to our customers and consumers as we strive to offset these headwinds and generate sustainable, profitable growth over the long term.
—Noel Wallace, Chairman, President and CEO