On a day when the markets were nervous about record oil prices and what Ben Bernanke and his Federal Reserve companions were mulling over, Colgate-Palmolive
By the numbers
Worldwide sales grew 12% on a unit volume increase of 5.5%, coupled with a 5.5% foreign currency tailwind, and a small 1% increase in prices. Sales gains were in double digits in foreign markets and in the Hills pet food business. North American sales grew just 3%, continuing recent trends. A 12% increase in advertising spending fueled the sales increases.
Colgate-Palmolive's operating profit grew 16%, excluding restructuring charges and benefiting from the gross margin expanding by 80 basis points. Expenses grew slower than sales, leading to a sweet 18% gain and beating Street expectations by a penny. This is the fourth consecutive quarter of double-digit sales and profit growth for Colgate, and the highest quarterly earnings-per-share increase in four years.
Leading the consumer products pack?
President and CEO Ian Cook was beaming when he announced that the company expected double-digit earnings growth for the rest of 2007 and for next year as well. With a new product pipeline that's bursting, and the benefit of a shift toward higher-margin products, things look pretty rosy at Colgate.
Compare this with Procter & Gamble
More to come
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