Colgate-Palmolive Company reported worldwide net sales of $3,999 million in third quarter 2015, a decrease of 8.5% versus Q3 2014.
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Global unit volume grew 1%, pricing increased 3.5% and foreign exchange was negative 13.0%. Divestments decreased volume by 0.5%. Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 5%.
Net income and Diluted earnings per share in third quarter 2015 were $726 million and $0.80, respectively.
Net income in third quarter 2015 included an aftertax gain of $120 million ($0.13 per diluted share) from the previously disclosed sale of the company's laundry detergent business in the South Pacific and $47 million ($0.05 per diluted share) of aftertax charges resulting from the implementation of the company's four-year Global Growth and Efficiency Program and an effective devaluation in Venezuela.
Net income and Diluted earnings per share in third quarter 2014 were $542 million and $0.59, respectively. Net income in third quarter 2014 included $159 million ($0.17 per diluted share) of aftertax charges resulting from certain items.
Excluding the above noted items in both periods, Net income in third quarter 2015 was $653 million, a decrease of 7% versus third quarter 2014, and Diluted earnings per share in third quarter 2015 was $0.72, a decrease of 5% versus third 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 58.7% in third quarter 2015 versus 58.4% in third quarter 2014.
Excluding the above noted items in both periods, Gross profit margin was 58.8% in third quarter 2015, an increase of 20 basis points versus the year ago quarter, primarily as a result of the benefits from cost savings from the company's funding-the-growth initiatives and the 2012 Restructuring Program and higher pricing, partially offset by higher raw and packaging material costs, driven by significant foreign exchange transaction costs.
Selling, general and administrative expenses were 33.7% of net sales in third quarter 2015 versus 34.2% of net sales in third quarter 2014. Excluding the above noted items in both periods, Selling, general and administrative expenses decreased by 60 basis points to 33.3% of net sales in third quarter 2015, due to decreased advertising investment as a percentage of net sales, in part reflecting a shift in advertising investment to in-store promotional activities.
Worldwide advertising investment decreased 23% to $328 million versus the year ago quarter, largely reflecting the impact of negative foreign exchange.
Operating profit increased 20% to $1,136 million in third quarter 2015 compared to $948 million in third quarter 2014. Excluding the above noted items in both periods, Operating profit decreased 6% to $1,013 million in third quarter 2015.
Operating profit margin was 28.4% in third quarter 2015 versus 21.6% in third quarter 2014. Excluding the above noted items in both periods, Operating profit margin was 25.3% in third quarter 2015, an increase of 70 basis points versus the year ago quarter.
Net cash provided by operations year to date was $2,108 million compared to $2,392 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 1.3%, an improvement of 80 basis points versus the year ago period primarily due to a decrease in inventories and accounts receivable, reflecting the company's tight focus on working capital. ■