Colgate-Palmolive reported worldwide net sales of $4,066 million in second quarter 2015, a decrease of 6.5% versus second quarter 2014.
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Global unit volume grew 3%, pricing increased 2.5% and foreign exchange was negative 12.0%. Organic sales, net sales excluding foreign exchange, acquisitions and divestments, grew 5.5%.
Net income and Diluted earnings per share in second quarter 2015 were $574 million and $0.63, respectively. Net income in second quarter 2015 included $65 million ($0.07 per diluted share) of aftertax charges resulting from the implementation of the company's four-year Global Growth and Efficiency Program, an effective devaluation in Venezuela and a previously disclosed foreign tax matter.
Net income and Diluted earnings per share in second quarter 2014 were $622 million and $0.67, respectively. Net income in second quarter 2014 included $54 million ($0.06 per diluted share) of aftertax charges resulting from the items described in Table 8.
Excluding the above noted items in both periods, Net income in second quarter 2015 was $639 million, a decrease of 5% versus second quarter 2014, and Diluted earnings per share in second quarter 2015 was $0.70, a decrease of 4% versus second quarter 2014.
On a currency-neutral basis and excluding the above noted items in both periods, Diluted earnings per share increased double digit.
Gross profit margin was 58.2% in second quarter 2015 versus 58.6% in second quarter 2014.
Excluding the above noted items in both periods, Gross profit margin was 58.3% in second quarter 2015, a decrease of 50 basis points versus the year ago quarter, primarily as a result of higher raw and packaging material costs, driven by significant foreign exchange transaction costs, which were partially offset by higher pricing and the benefits from cost savings from the company's funding-the-growth initiatives and the 2012 Restructuring Program.
Selling, general and administrative expenses were 34.0% of Net sales in second quarter 2015 versus 34.6% of Net sales in second quarter 2014. Excluding the above noted items in both periods, Selling, general and administrative expenses decreased by 70 basis points to 33.7% of Net sales in second quarter 2015, due to decreased advertising investment as a percentage of Net sales.
Worldwide advertising investment decreased 12% to $410 million versus the year ago quarter.
Operating profit decreased 5% to $932 million in second quarter 2015 compared to $980 million in second quarter 2014. Excluding the above noted items in both periods, Operating profit decreased 5% to $1,000 million in second quarter 2015.
Operating profit margin was 22.9% in second quarter 2015 versus 22.5% in second quarter 2014. Excluding the above noted items in both periods, Operating profit margin was 24.6% in second quarter 2015, an increase of 30 basis points versus the year ago quarter.
Net cash provided by operations year to date was $1,223 million compared to $1,389 million in the comparable 2014 period, primarily due to lower operating earnings and higher payments related to income taxes and a previously disclosed European competition law matter.
Working capital as a percentage of net sales was negative 0.2%, an improvement of 90 basis points versus the year ago period. ■