[ACCESSWIRE]
Upcoming AWS Coverage on Coty Post-Earnings Results
LONDON, UK / ACCESSWIRE / February 9, 2017 / Active Wall St. announces its post-earnings coverage on Colgate-Palmolive Co. (NYSE: CL). The Company posted its fourth quarter and fiscal year 2016 results on January 27, 2017. The toothpaste, soaps, and detergents maker reported a decline in sales, impacted by a global volume decline and adverse foreign exchange impact. 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, Coty Inc. (NYSE: COTY), announced on January 30, 2017, that it will release Q2 FY17 financial results before the open of the US equity markets on the morning of Thursday, February 09, 2017. AWS will be initiating a research report on Coty in the coming days.
Today, AWS is promoting its earnings coverage on CL; touching on COTY. Get our free coverage by signing up to:
http://www.activewallst.com/register/
Earnings Reviewed
For the quarter ended on December 31, 2016, Colgate-Palmolive reported worldwide net sales of $3.72 billion, down 4.5% versus net sales of $3.90 billion. Net sales numbers also came in below analysts' expectations of $3.87 billion. The Company's Global unit volume decreased 5.5%, pricing increased 2.5%, and foreign exchange was negative 1.5% during the reported quarter. For FY16, Colgate-Palmolive reported worldwide net sales of $15.20 billion, down 5.0% versus FY15 net sales of $16.03 billion.
Colgate-Palmolive's gross profit margin was 60.4% in Q4 2016 versus 58.8% in Q4 2015. On an adjusted basis, the Company's gross profit margin was 60.8% in Q4 2016, an increase of 180 basis points versus the year ago same quarter. Colgate-Palmolive's operating profit margin was 25.7% in Q4 2016 versus (3.6) % in Q4 2015.
For Q4 2016, Colgate-Palmolive's net income and diluted earnings per share were $606 million and $0.68, respectively, compared to net loss and diluted loss per share in Q4 2015 of $(458) million and $(0.51), respectively. The Company's net income in Q4 2016 included $54 million, or $0.06 per diluted share, of after-tax charges resulting from the Company's Global Growth and Efficiency Program and an after-tax charge of $7 million ($0.01 per diluted share) for a previously disclosed litigation matter. Excluding these charges and the charge for the deconsolidation of the Company's Venezuelan operations in 2015, the Company's net income in Q4 2016 was $667 million and diluted earnings per share in Q4 2016 was $0.75, in-line with Wall Street's expectation of $0.75 per share. Net income and diluted earnings per share for FY16 were $2.44 billion and $2.72, respectively, compared to net income and diluted earnings per share for FY15 of $1.38 billion and $1.52, respectively.
Segment Results
Colgate-Palmolive's North America region, which contributes 21% of the Company's sales, reported that net sales, unit volume, pricing, foreign exchange, and organic sales were all even compared to Q4 2015. Operating profit in North America decreased 3% in Q4 2016 to $268 million, or 33.9% of net sales. Colgate's share of the toothpaste market strengthened to 35.5% year-to-date, up 0.2 share points on y-o-y basis. In manual toothbrushes, Colgate strengthened its brand market leadership in the US with its market share in at 41.4%, up 0.2 share points versus the year ago comparable period.
For the Company's Latin America region which comprises 24% of the Company's sales, net sales decreased 10.5% in Q4 2016, unit volume decreased 16.5% with 9.0% higher pricing, while foreign exchange was negative 3.0%. Operating profit in Latin America increased 8% in Q4 2016 to $303 million, or 550 basis points to 32.2% of net sales. Colgate strengthened its leadership 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.
Colgate-Palmolive's Europe region, which generates 16% of total Company sales, saw net sales decreased 7.5% in Q4 2016. Unit volume decreased 2.0%, pricing decreased 1.5%, and foreign exchange was negative 4.0%. Operating profit in Europe decreased 5% in Q4 2016 to $142 million; while as a percentage of net sales, it increased 70 basis points to 26.3%. Colgate maintained its oral care leadership in Europe during the reported quarter, driven by toothpaste market share gains in Spain, Italy, Germany, Belgium, Austria, Hungary, Czech Republic, Bulgaria, Bosnia, and Latvia.
Asia/Pacific region contributed 18% of the Company's sales in Q4 2016, and the region reported that net sales decreased 4.0% during Q4 2016. Unit volume was even with the year ago same quarter while pricing decreased 2.0% and foreign exchange was negative 2.0%. Volume declines in India, driven by the demonetization, were offset by volume gains in the Philippines and the Greater China region. Organic sales for Asia/Pacific decreased 2.0%. Operating profit in Asia/Pacific increased 3% in Q4 2016 to $219 million, or 240 basis points to 34.6% of net sales. Colgate continued its toothpaste leadership in the Asia/Pacific region during the quarter with market share gains in the Philippines, Vietnam, and Pakistan.
Africa/Eurasia recorded 6% of the Company's sales and reported a 1.5% decline in net sales during Q4 2016. Unit volume decreased 12.0%, pricing increased 10.0% and foreign exchange was positive 0.5%. Operating profit in Africa/Eurasia decreased 4% in Q4 2016 to $48 million, or 50 basis points to 20.0% of net sales. Colgate continued its toothpaste leadership in Africa/Eurasia during the quarter, with market share gains in Turkey, Saudi Arabia, South Africa, the United Arab Emirates, Tunisia, Kuwait, Kazakhstan, Israel, Qatar, Oman, and Bahrain.
Hill's Pet Nutrition's (which contributes 15% to the Company's sales) net sales increased 0.5% in Q4 2016. Unit volume decreased 2.5% with 2.5% higher pricing, while foreign exchange was positive 0.5%. Volume declines in the US, Western Europe, and Japan were partially offset by volume gains in the rest of Asia, Latin America, Russia, and South Africa. Hill's operating profit increased 7% in Q4 2016 to $174 million, or 200 basis points to 30.1% of net sales.
Cash Flow and Balance Sheet
Colgate-Palmolive's net cash provided by operations year-to-date was $3.14 billion compared to $2.95 billion in the comparable 2015 period. Working capital as a percentage of net sales was negative 2.2% compared to 0.5% in the year ago same period.
Stock Performance
At the close of trading session on Wednesday, February 08, 2017, Colgate-Palmolive's stock price slightly rose 0.05% to end the day at $66.59. A total volume of 3.57 million shares were exchanged during the session. The Company's shares are trading at a PE ratio of 24.51 and have a dividend yield of 2.34%. At Wednesday's closing price, the stock's net capitalization stands at $58.93 billion.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street
