Colgate-Palmolive beats by $0.01, reports revs in-line
Reports Q4 (Dec) earnings of $0.75 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.74; revenues rose 1.7% year/year to $4.36 bln vs the $4.39 bln consensus.
Net income in fourth quarter 2013 excluded $0.15 per diluted share of after tax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program, a charge associated with an existing European competition law matter and costs associated with the sale of land in Mexico.
Key metrics:
North America (18% of Company Sales)
"As we look ahead to 2014, based on the Company's current growth momentum and our confidence in the strength of our global growth and efficiency program, we are planning for a year of gross margin expansion and strong earnings per share growth in line with the consensus of external analyst estimates, excluding charges related to the 2012 Restructuring Program. This takes into account recent movements in foreign exchange rates but excludes the impact of the recent economic announcements in Venezuela, which we are still evaluating."
Net income in fourth quarter 2013 excluded $0.15 per diluted share of after tax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program, a charge associated with an existing European competition law matter and costs associated with the sale of land in Mexico.
Key metrics:
- Global unit volume grew 6.5%, pricing was even with the year ago quarter and foreign exchange was negative 4.5%.
- Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 6.5%.
- Gross profit margin was 59.1% in fourth quarter 2013, an increase of 50 basis points versus the year ago quarter, as cost savings from the Company's funding-the-growth initiatives more than offset higher raw and packaging material costs which included the impact of foreign exchange transaction costs.
North America (18% of Company Sales)
- North America Net sales increased 2.5% in fourth quarter 2013. Unit volume increased 4.0% with 1.0% lower pricing and 0.5% negative foreign exchange. Organic sales increased 3.0% during the quarter.
- Latin America Net sales increased 1.0% in fourth quarter 2013. Unit volume increased 10.0% with 2.5% higher pricing and 11.5% negative foreign exchange. Volume gains were led by Venezuela, Brazil, Mexico and Colombia. Organic sales for Latin America increased 12.5% during the quarter.
- Europe/South Pacific Net sales decreased 0.5% in fourth quarter 2013. Unit volume increased 2.5% with 4.5% lower pricing and 1.5% positive foreign exchange. Excluding divested businesses, unit volume increased 3.0%. Volume gains in the United Kingdom, Australia and Poland more than offset volume declines in France and Germany. Organic sales for Europe/South Pacific decreased 1.5%.
- Asia Net sales increased 4.5% during fourth quarter 2013. Unit volume increased 10.5% with 1.5% lower pricing and 4.5% negative foreign exchange. Volume gains were led by the Greater China region, India and the Philippines. Organic sales for Asia increased 9.0%.
- Hill's Net sales increased 4.5% during fourth quarter 2013. Unit volume increased 4.0% with 3.0% higher pricing and 2.5% negative foreign exchange. Volume gains in the U.S., Russia and Canada were partially offset by volume declines in Japan. Hill's organic sales increased 7.0%.
"As we look ahead to 2014, based on the Company's current growth momentum and our confidence in the strength of our global growth and efficiency program, we are planning for a year of gross margin expansion and strong earnings per share growth in line with the consensus of external analyst estimates, excluding charges related to the 2012 Restructuring Program. This takes into account recent movements in foreign exchange rates but excludes the impact of the recent economic announcements in Venezuela, which we are still evaluating."