Colgate-Palmolive reports EPS in-line, revs in-line; guides FY14 revs above consensus
Reports Q1 (Mar) earnings of $0.68 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.68; revenues rose 0.2% year/year to $4.33 bln vs the $4.33 bln consensus.
- Co issues upside guidance for FY14, lowers FY14 revs to +4-5% dollar basis (prior guidance of 4.5%-5.5%) calc to ~$18.11-18.21 bln vs. $17.76 bln Capital IQ Consensus Estimate.
- Gross profit margin was 58.4% in first quarter 2014 versus 58.3% in the year ago quarter. Excluding the above noted items in both periods, Gross profit margin was 58.6% in first quarter 2014, even with the year ago quarter, as higher pricing, cost savings from the Company's funding-the-growth initiatives and cost savings from the 2012 Restructuring Program were offset by higher raw and packaging material costs, which included the impact of foreign exchange transaction costs.
- North America Net sales increased 2.5% in first quarter 2014. Unit volume increased 4.5% with 1.0% lower pricing due to increased promotional activities and 1.0% negative foreign exchange. Organic sales increased 3.5% during the quarter. Latin America Net sales decreased 5.0% in first quarter 2014.
- Unit volume increased 4.5% with 6.5% higher pricing and 16.0% negative foreign exchange. Volume gains were led by Venezuela, Brazil, Mexico and Colombia. Organic sales for Latin America increased 11.0% during the quarter. Asia Net sales increased 2.5% during first quarter 2014.
- Unit volume increased 7.0%, with 0.5% higher pricing and 5.0% negative foreign exchange. Volume gains were led by the Greater China region, India, the Philippines and Malaysia. Organic sales for Asia increased 7.5%.