Colgate-Palmolive Co. reported net income of $347.2 million for the third quarter, up from $329 million from one year ago, with every operating division reporting sales and profit increases. Worldwide sales rose 8% to an all-time record level of $2.91 billion, reflecting unit volume growth of 5%, the company said.
The company cited strong volume growth across the globe and improved profit margins for the up tick. It also bolstered prices and reined in costs. The results included a gain from the $60 million sales of its laundry detergent brands during the quarter.
The quarter ended Sept. 30 for the maker of Colgate toothpaste, Palmolive dishwashing liquid and Softsoap hand soaps.
Colgate, the world’s largest seller of toothpaste, said that its leadership in the category expanded even further during the quarter, with market shares reaching record highs in the U.S. as well as key countries around the world. Its oral care category, which includes manual toothbrushes, was up 10% worldwide. Its U.S. market share in the toothpaste category reached 35.5%, driven in part by testimonial ads for its Total toothpaste.
Increased profit margins, cost-saving initiatives and improved pricing trends funded a “sizable” increase in worldwide advertising, the company said.
North American growth (22% of company sales) was fueled by new product sales and gains in market share. Latin America sales (23% of company sales) grew 18% in the quarter to an all-time high. Unit volume was up 5.5%. European sales (24% of company sales) and unit volume grew 2.5% and 4.5% respectively. Asia/Africa (8% of company sales) reported sales and unit volume grew 9.5% and 7% respectively. Hill’s, the specialty pet food division, saw unit volume increase 4% and sales growth of 7%. (Hill’s makes up 13% of company sales).
The company backed its previous full-year financial forecast.
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