Brazilian consumption help Colgate performance

The economic recovery in Brazil, driven by household consumption, reflexes in the financial statements of the American Group Colgate-Palmolive. The manufacturer of hygiene and beauty products, net sales in Latin America, which accounted for 25% of the total in the fourth quarter, grew 4% on annual variation. The unitary volume advanced equal 4%. The gains were led by Brazil and the Southern Cone and Andean regions, which partially offset the declines observed in Mexico and Central America. In December, the company reached your greater participation in the Brazilian market, to 73.7%. The launch of Colgate Total mouthwash collaborated to add two points to the market share in this segment since the third quarter. There are several product launches in the oral pharmacies, which records high growth for this year. Net sales in the Latin American market rose 3.8% in the period, to $ $976 million. In North America, the high was 1%, to $ $798 million. Ian Cook, President and ceo of Colgate, said sales rose globally thanks to volume expansion in Latin America, North America and Europe. The competitive environment is more difficult, especially in the United States, with manufacturers such as Procter Gamble & (P&G) and Kimberly-Clark lowering prices to increase sales. In the fourth quarter of 2017, global prices of Colgate retreated 1%. Net income attributed to the controllers of Colgate in the quarter was $ $323 million, with 46.7% fall compared to the same period last year. In 2017, the net profit fell 17.08%, to $ $2.02 billion. The result was affected by charges of tax efficiency program of tax reform made by the American President Donald Trump and a dispute of 2016. The P&G giant competitors, Kimberly-Clark and Johnson & Johnson (J&J), which also released swings last week, does not have detailed the numbers of Brazilian operations. The most intense competition caused overall sales more timid, except for J&J, which registered significant growth in revenue, but recorded loss due to new American tax laws. After weak growth of 0.84% sales of Kimberly-Clark in the fourth quarter, to $ $4.58 billion, the American company announced a global restructuring that will culminate with the cut of 13% of the workforce, or up to 5500 employees. In 2017, the net revenue totaled $ $18.25 billion, with slight high of 0.32%. The company cited that rivals are cutting prices and intensify competition. Wanted to comment on the value effects of these layoffs in the brazilian operation, the proprietor of the brand Huggies, Scott, Kleenex, Intimus and snow responded in a statement that the timing of the ads will be determined by business needs. "[There will be] appropriate consultations and negotiations with trade unions, company boards and other labour parties concerned". In P&G, Ariel, Pantene and Gillette, the average prices of the products in the quarter fell for the first time since 2011. The discounts helped lift sales in most segments. Second-quarter revenue advanced 3% on an annual basis, to $ $17.39 billion. But net profit fell 68 percent to $ $2.56 billion. Jon Moeller, Chief Financial Officer of P&G, said that the policy of lower prices not extend. The J&J had 11.5% high in revenue in the quarter, to $ $20.2 billion. In 2017, there were 6.3% growth compared to the previous year, to $ $76.45 billion. Nevertheless, the new tax law took the manufacturer to register net loss of $ $10.71 billion in the quarter, reversing a profit of $ $3.81 billion.