Colgate-Palmolive has reported higher sales for the third quarter, as an increase in pricing offset a decline in volume.
The company’s net sales for the quarter ended September 30 rose 2 per cent to US$5.1 billion. Product pricing during the quarter increased 2.3 per cent, while volume decreased 1.5 per cent.
Organic sales edged up 0.4 per cent, including a 0.8 per cent negative impact from lower private label pet sales after the company exited that non-strategic business.
CEO Noel Wallace said the sales growth was delivered in the face of slowing category growth in many markets.
Net sales fell 0.4 per cent in North America and 1.5 per cent in Asia Pacific, but grew 2 per cent in Latin America, 7.6 per cent in Europe, and 6.8 per cent in Africa/Eurasia. Hill’s Pet Nutrition sales increased 1.4 per cent.
On the bottom line, operating profit dropped 1 per cent to $1.059 billion and attributable net income was down from $737 million in the year-ago period to $735 million.
For the full year, Colgate-Palmolive continues to expect net sales to be in the low single digits. However, organic sales are now forecast to increase 1-2 per cent, down from the previous guidance of 2-4 per cent.
“As we transition to our new 2030 strategy and deploy our previously announced Strategic Growth and Productivity Program, we are well positioned to reaccelerate growth despite uncertainty in global markets and lower worldwide category growth,” said Wallace.
“The 2030 strategy is our blueprint for adapting to the challenges and capturing the opportunities of this more complex operating environment,” he added.
