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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Fool contributor Timothy M. Otte surveys the retail scene from Dallas. He welcomes comments on his articles, but doesn't own shares of any of the companies mentioned in this article. The Fool has a disclosure policy.