[ACCESSWIRE]
Upcoming AWS Coverage on Avon Products Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 7, 2016 / Active Wall St. announces its post-earnings coverage on Colgate-Palmolive Co. (NYSE: CL). The company released its financial results for the third quarter fiscal 2016 on October 27, 2016. The consumer products maker's earnings came in at par with analysts' expectations; however the company's top-line missed consensus estimates for the second consecutive quarter. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Colgate-Palmolive's competitors within the Personal Products space, Avon Products Inc. (NYSE: AVP), reported third-quarter 2016 results on November 03, 2016. AWS will be initiating a research report on Avon Products in the coming days.
Today, AWS is promoting its earnings coverage on CL; touching on stock like AVP. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=CL
http://www.activewallst.com/registration-3/?symbol=AVP
Earnings Reviewed
For the three months ended on September 30th, 2016, Colgate reported worldwide net sales of $3.87 billion, down 3.5% from the year ago period, and which was also below analysts' expectations of $3.93 billion. The decline was attributed to the 4.0% drop in the company's global unit and foreign exchange impact of 2.5%, but which was partially recovered by a 3.0% increase in pricing. During Q3 2016, Colgate's net income came in at $702 million, or $0.78 per share, down from $726 million, or $0.80 per share, for the same period last year. Adjusted earnings totaled $0.73 per share, meeting analysts' expectations.
Geographical Results
North America (21% of sales) During Q3 2016, Colgate- Palmolive's sales in North American region increased 1.0%, attributed to an improvement of 1.5% in unit volume, yet offset by 0.5% of lower pricing, while foreign exchange remained flat on a y-o-y basis. Operating profit in North America increased 6% in Q3 2016 to $273 million, or 150 basis points, to 34.1% of net sales.
In the U.S., Colgate's share of the toothpaste market strengthened to 35.7% YTD, up 0.3 share points versus the year ago period. In manual toothbrushes, Colgate strengthened its brand market leadership in the U.S. with its market share in that category at 41.9% YTD , up 0.5 share points versus the prior year's period.
Latin America (24% of sales) For Q3 2016, Colgate's sales in Latin America fell 13.0%., as unit volume slumped 16.0%, recovering partially with a 9.0% increase due to higher pricing, while foreign exchange also dropped 6.0%. Operating profit in Latin America fell 1% in Q3 2016 to $298 million, while as a percentage of net sales it increased 410 basis points to 32.3% of net sales. Colgate strengthened its leadership position in toothpaste in Latin America during the reported quarter, driven by market share gains in Brazil, Peru, Uruguay, Paraguay, Puerto Rico, Nicaragua, and Costa Rica.
Europe (16% of sales) European sales for Colgate dropped 1.5% in Q3 2016, driven by 4.0% improvement in unit volume, but offset by a 2.5% decline in prices, and foreign exchange drop of 3.0%. Operating profit in Europe decreased 8% in Q3 2016 to $158 million, or 200 basis points to 25.9% of net sales. Colgate maintained its oral care leadership in Europe during the quarter, driven by toothpaste market share gains in Spain, France, Belgium, Austria, Denmark, Poland, Hungary, Czech Republic, Italy, Bulgaria, Bosnia, and Latvia.
Asia/Pacific (19% of sales) Coalgate's Asia/Pacific region reported a decline of 1.5% in sales during Q3. Unit volume was even with the year ago quarter while pricing increased 0.5% and foreign exchange was negative 2.0%. Excluding divested businesses, unit volume increased 2.5%. Operating profit in Asia/Pacific increased to $230 million in Q3 2016, or 60 basis points to 31.8% of net sales. Colgate continued its toothpaste leadership in the Asia/Pacific region during the quarter, with market share gains in Hong Kong, Taiwan, the Philippines, New Zealand, Vietnam, and Pakistan.
Africa/Eurasia (6% of sales) Sales for Colgate's Africa/Eurasia region improved 1.5% for Q3 2016. Unit volume decreased 2.0%, pricing increased 10.5% and foreign exchange was negative 7.0%. Operating profit in Africa/Eurasia increased 14% in Q3 2016 to $50 million, or 210 basis points, to 20.0% of net sales.
Operating Statistics
During Q3 2016, Colgate reported gross profit margin of 60.1% versus 58.7% in Q3 2015. The company's operating profit dropped to $1.07 billion in Q3 2016 compared to $1.14 billion in Q3 2015. For the reported quarter, Colgate's operating profit margin was 27.7% versus 28.4% in the prior year's quarter.
Financials
Colgate reported that net cash provided by operations on a YTD basis was $2.32 billion compared to $2.11 billion in the comparable 2015 period. Working capital as a percentage of net sales was negative 3.4% compared to negative 1.3% in the year ago period. At the end of Q3 2016, Colgate had cash and cash equivalents worth $1.30 billion and total debt of $6.52 billion.
Stock Performance
On Friday, November 04, 2016, Colgate-Palmolive's shares slipped 1.42%, finishing the day at $69.57 with volume of 3.87 million shares exchanging hands by the close of the trading session. For the last twelve months, the stock has gained 5.23%. Furthermore, on a year to date basis, the stock gained 6.78%. The stock is trading at a PE ratio of 44.94 and has a dividend yield of 2.24%.
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