Colgate-Palmolive posts net sales at $4,325 million in 1Q
26 Apr 2014
Colgate-Palmolive Company yesterday posted worldwide net sales of $4,325 million in first quarter 2014, unchanged from the first quarter 2013. Global unit volume was up 5.0 per cent, pricing increased 1.5 per cent and foreign exchange was negative 6.5 per cent. Organic sales (net sales excluding foreign exchange, acquisitions and divestments) increased 6.5 per cent.
Net income and Diluted earnings per share in first quarter 2014 stood at $388 million and $0.42, respectively, and net income in first quarter 2014 included an after-tax charge of $174 million ($0.19 per diluted share) pertaining to the remeasurement of the Venezuelan balance sheet resulting from several changes to Venezuela's foreign exchange system enacted by the Venezuelan government during the first quarter of 2014.
Net income in first quarter 2014 also included $74 million ($0.07 per diluted share) of aftertax charges stemming from the implementation of the previously disclosed four-year Global Growth and Efficiency Program (the "2012 Restructuring Program") as also costs associated with the Mexico land sale.
Colgate-Palmolive's net income was down 16 per cent in the first quarter, which was along Wall Street's expectations, with the company facing unsettled economic conditions in Venezuela.
Consumer products companies had taken a hard hit on currency devaluations across a number of emerging economies, which could cut into the value of sales.
The volatile currency situation could take a heavy toll of companies like Colgate, that had expected to offset stagnant sales in developed markets with growth in emerging markets, according to commentators. The majority of the company's business was now done overseas.
Colgate's revenue topped expectations with increased sales in North America, Europe and in the South Pacific-Asia region. However sales in Latin America, comprising the biggest component of total revenue at 27 per cent of sales, was down 5 per cent, hit by foreign currency fluctuations.
Africa/Eurasia sales were down slightly.
According to the company, the latest quarter results included a charge of 19 cents per share tied to a recalculation of the Venezuelan balance sheet.
This comes following several changes to the country's foreign exchange system enacted by its government in the first quarter.
