Friday, July 29, 2016

Colgate-Palmolive has greater profit and lower sales in the second quarter

Colgate-Palmolive recorded in the second quarter of this year net profit of $ 600,000,000, 4.53% gain recorded in same period in 2015. On the same basis of comparison, net sales retreated 5.44%, to $ 3.845 billion.
The company said the result between April and June was affected by the devaluation of the currencies of the countries in which it operates outside the United States before the dollar costs of the restructuring program launched by the company in 2012 and writedowns related to resources held in Venezuela.
The operating profit of Colgate-Palmolive in the second quarter of this year stood at $ 944,000,000, up from $ 932,000,000 a year before. But if excluding non-recurring effects and restructuring related to Venezuela, this financial indicator would have been $ 1.003 billion, the company said in the earnings release.
Latin America In Latin America, net sales of Colgate-Palmolive retreated 16.5%. There was a 13.5% drop in volume, partly mitigated by the increase of 9.5% in the prices of marketed products. Organic sales increased 9.5%.
The company said that the positive performance established in Central America and Mexico helped negate the negative impact of the operation in Brazil and in Argentina.
The operating profit in Latin America retreated 12% in the second quarter compared to the previous year, standing at $ 284,000,000. But the operating profit margin in relation to sales in the region grew 1.8 percent, to 30.3%.
Colgate said have strengthened leadership in the segment of toothpaste across Latin America during the quarter, driven by market share gains in Brazil, Argentina, Colombia, Nicaragua, Peru, Uruguay, Paraguay and Costa Rica.
"Organic sales growth was led by the emerging markets, where organic sales grew a strong 6.5 percent, despite economic challenges in several countries," said the company''s Chairman, Ian Cook, in a statement.
The Executive said that expects a slight decrease, from a middle digit, in net sales for the year, due to the exchange rate. The company plans for the year an increase in gross margin.
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