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Colgate announces 2nd quarter 2021 results

By Hemanth on Jul 31, 2021 | 02:31 AM IST


Colgate-Palmolive Company [CL] today reported results for second quarter 2021. Noel Wallace, Chairman, President and Chief Executive Officer, commented on the second quarter results, “We are pleased that our strong growth momentum continued in the second quarter, even as we operated in an environment marked by significant volatility. Net sales increased 9.5% and organic sales grew 5.0% driven by both volume growth and higher pricing. This is our tenth consecutive quarter delivering organic sales growth either in or above our targeted range of 3% to 5%.

“Despite significant raw material and logistics cost headwinds, we delivered another quarter of increased operating profit, net income and earnings per share on a Base Business basis. We expect the difficult cost environment to continue in the back half of the year and we remain sharply focused on our funding the growth and revenue growth management initiatives.

“As we look around the world, there is still much uncertainty stemming from the COVID-19 pandemic, including volatility in consumer demand and currencies and supply chain disruptions. In the face of these challenges, Colgate people everywhere remain committed to achieving our business goals by driving premium innovation, executing with agility and leveraging digital in all areas of our business. I am confident that our investment choices and growth strategies will help us manage through this difficult time.”


Colgate announces 2nd quarter 2021 results

- Net sales increased 9.5%, Organic sales* increased 5.0%

- On a GAAP basis, EPS grew 12% to $0.83; On a Base Business basis, EPS* grew 8% to $0.80

- GAAP Gross profit margin and Base Business Gross profit margin* decreased 80 basis points to 60.0%

- Net cash provided by operations was $1,225 million for the first six months of 2021

- Colgate’s leadership in toothpaste continued with its global market share at 39.3% year to date

- Colgate’s leadership in manual toothbrushes continued with its global market share at 30.8% year to date

- The Company updated its financial guidance for full year 2021


Full Year 2021 Guidance

Based on current spot rates:

-The Company still expects net sales to be up 4% to 7% including a low-single-digit benefit from foreign exchange.

-The Company still expects organic sales to be up within its long-term targeted range of 3% to 5%.

-On a GAAP basis, the Company now expects a decline in gross profit margin, increased advertising investment and earnings-per-share growth at the lower end of its low to mid-single-digit range.

-On a non-GAAP (Base Business) basis, the Company now expects a decline in gross profit margin, increased advertising investment and earnings-per-share growth at the lower end of its mid to high-single-digit range.

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