Colgate-Palmolive Co. (NYSE: CL – $72.98), which sells oral care, household and personal care products as well as pet nutrition, reported revenue of $3.87 for the second quarter, down from $3.89 billion in 2018. This was below the consensus estimate of $3.88 billion. The company said that the result was impacted by a negative 4.5% foreign-exchange effect as organic sales increased by 4%. Adjusted earnings per share slid to $0.72 from $0.77 a year earlier, but equal to Street expectations. Broken down by business segment, oral, personal and home care revenue accounted for most of the sales, but fell to $3.25 billion compared with $3.29 billion a year earlier. Sales from the pet nutrition business rose 3.5% to $613 million from $592 million a year earlier. Geographically:
- North America net sales increased 2.5% in second quarter 2019. Unit volume increased 2.0%, pricing increased 1.0% and foreign exchange was negative 0.5%. Organic sales for North America increased 3.0%.
- Latin America sales decreased 0.5% in second quarter 2019. Unit volume increased 1.5%, pricing increased 5.5% and foreign exchange was negative 7.5%. Volume gains in Mexico and Colombia were partially offset by volume declines in Brazil. Organic sales for Latin America increased 7.0%.
- Europe net sales decreased 5.0% in second quarter 2019. Unit volume was even with the year ago period, pricing increased 1.0% and foreign exchange was negative 6.0%. Volume gains in Spain and Greece were offset by volume declines in Germany and France. Organic sales for Europe increased 1.0%.
- Asia Pacific sales decreased 4.0% during second quarter 2019. Unit volume decreased 1.5%, pricing increased 0.5% and foreign exchange was negative 3.0%. Volume declines in the Greater China region were partially offset by volume gains in Thailand. Organic sales for Asia Pacific decreased 1.0%.
- Africa/Eurasia sales increased 0.5% during second quarter 2019. Unit volume increased 3.5%, pricing increased 6.0% and foreign exchange was negative 9.0%. Volume gains in Russia and the Gulf States were partially offset by volume declines in South Africa and Saudi Arabia. Organic sales for Africa/Eurasia increased 9.5%.
For the full year, Colgate reiterated that 2019 net sales would be flat to up low single digit, with organic sales up by between 2% and 4%, though the company said that it now expects it to be toward the higher end of that range. On an adjusted basis, the company said that it continues to plan for a year of gross margin expansion, increased advertising investment and a mid-single digit decline in earnings per share. The shares, trading near a record high, yield 2.4% at current levels.