Colgate-Palmolive reported EPS in-line, misses on rev and guided FY18 (77.31)
- Reports Q4 (Dec) earnings of $0.75 per share, in-line with the Capital IQ Consensus of $0.75; revenues rose 4.6% year/year to $3.89 bln vs the $3.92 bln Capital IQ Consensus.
- Global unit volume increased 3.0%, pricing decreased 1.0% and foreign exchange was positive 2.5%. Organic sales (Net sales excluding the impact of foreign exchange, acquisitions and divestments) increased 2.0%.
- Gross profit margin was 59.8% in fourth quarter 2017 versus 60.4% in fourth quarter 2016. Excluding charges resulting from the Global Growth and Efficiency Program in both periods, Gross profit margin was 60.4% in fourth quarter 2017, a decrease of 40 basis points versus the year ago quarter, as higher raw and packaging material costs and lower pricing were partially offset by cost savings from the Company's funding-the-growth initiatives.
"As we look ahead to 2018, while uncertainty in global markets and category growth worldwide remain challenging, we are maintaining our heightened focus on brand building and increased productivity. Based on current spot rates, we expect a mid-single-digit net sales increase [+4.3%] and low to mid-single-digit organic sales growth in 2018, with improvement in organic sales growth versus the second half of 2017." "Excluding charges resulting from the Global Growth and Efficiency Program and the one-time charge related to U.S. tax reform in 2017, based on current spot rates, we are planning for a year of increased operating cash flow, gross margin expansion, increased advertising investment and low double-digit earnings per share growth [consensus +8.4%], including the impact of U.S. tax reform. Reflecting the U.S. tax reform, we expect our 2018 tax rate to be in the range of 26% to 27%, both on a GAAP basis and excluding the impact of the Global Growth and Efficiency Program."
CL -4% premarke