Drmicrocap
11年前
Colgate Announces 4th Quarter and Full Year 2013 Results
Strong Organic Sales Growth Worldwide
Business Wire Colgate-Palmolive Company
1 hour ago
NEW YORK--(BUSINESS WIRE)--
Colgate-Palmolive Company (CL) today reported worldwide Net sales of $4,361 million in fourth quarter 2013, an increase of 2.0% versus fourth quarter 2012. Global unit volume grew 6.5%, pricing was even with the year ago quarter and foreign exchange was negative 4.5%. Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 6.5%.
Net income and Diluted earnings per share in fourth quarter 2013 were $564 million and $0.60, respectively. Net income in fourth quarter 2013 included $133 million ($0.15 per diluted share) of aftertax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program (the “2012 Restructuring Program”), a charge associated with an existing European competition law matter and costs associated with the sale of land in Mexico.
Net income and Diluted earnings per share in fourth quarter 2012 were $598 million and $0.63, respectively. Net income in fourth quarter 2012 included aftertax charges of $73 million ($0.07 per diluted share) resulting from the items described in Table 8.
Excluding the above noted items in both periods, Net income in fourth quarter 2013 was $697 million, an increase of 4% versus fourth quarter 2012, and Diluted earnings per share in fourth quarter 2013 was $0.75, an increase of 7% versus fourth quarter 2012.
Gross profit margin was 58.9% in fourth quarter 2013 versus 58.4% in the year ago quarter. Excluding the above noted items in both periods, Gross profit margin was 59.1% in fourth quarter 2013, an increase of 50 basis points versus the year ago quarter, as cost savings from the Company’s funding-the-growth initiatives more than offset higher raw and packaging material costs which included the impact of foreign exchange transaction costs.
Selling, general and administrative expenses were 37.0% of Net sales in fourth quarter 2013 versus 34.7% of Net sales in fourth quarter 2012. Excluding the above noted items in both periods, Selling, general and administrative expenses decreased by 10 basis points to 34.5% of Net sales in fourth quarter 2013, as an increase in advertising investment was more than offset by a decrease in overhead expenses, both as a percentage of Net sales. Worldwide advertising investment increased 3% versus the year ago quarter to $445 million.
Operating profit decreased 5% to $892 million in fourth quarter 2013 compared to $942 million in fourth quarter 2012. Excluding the above noted items in both periods, Operating profit increased 4% to $1,074 million.
Net cash provided by operations year to date was $3,204 million compared to $3,196 million in the comparable 2012 period, as strong operating earnings and a continued tight focus on working capital were offset by higher cash spending related to the 2012 Restructuring Program. Free cash flow before dividends (Net cash provided by operations less Capital expenditures) exceeded 100% of Net income. Working capital as a percentage of Net sales was 0.7%, even with the year ago period.
For the full year 2013, worldwide Net sales were $17,420 million, up 2.0% versus full year 2012. Global unit volume grew 5.0%, pricing increased 1.0% and foreign exchange was negative 4.0%. Organic sales grew 6.0%.
Net income and Diluted earnings per share for full year 2013 were $2,241 million and $2.38, respectively. Full year 2013 results include $424 million ($0.46 per diluted share) of aftertax charges resulting from the implementation of the 2012 Restructuring Program, the one-time charge relating to the remeasurement of the Venezuela balance sheet as a result of the currency devaluation in Venezuela, a charge associated with a European competition law matter and costs associated with the sale of land in Mexico.
Net income and Diluted earnings per share for full year 2012 were $2,472 million and $2.57, respectively. As previously disclosed, full year 2012 results included net aftertax charges of $102 million ($0.11 per diluted share) resulting from the items described in Table 9.
Excluding the items noted above in both periods, Net income for full year 2013 increased 4% versus full year 2012 and Diluted earnings per share increased 6% versus full year 2012.
Gross profit margin was 58.6% for full year 2013 versus 58.1% in full year 2012. Excluding the items noted above in both periods, Gross profit margin was 58.8% in full year 2013, up 50 basis points versus full year 2012, as higher pricing and cost savings from the Company’s funding-the-growth initiatives more than offset the impact of increases in raw and packaging material costs and foreign exchange transaction costs.
Ian Cook, Chairman, President and Chief Executive Officer, commented on the results and outlook excluding the 2013 and 2012 items noted above, “We are delighted to have ended the year with another quarter of strong growth on both the top and bottom lines. For the eleventh consecutive quarter, operating profit, net income and diluted earnings per share all increased versus the year ago period.
“The strong 6.5% organic sales growth was led by the emerging markets, where organic sales grew a robust 10.5%. Our strong top-line momentum should continue into 2014, fueled by new products across all categories and in all geographies.
“Pleasingly, the increase in gross profit margin during the quarter, combined with a reduction in overhead costs funded an increase in advertising spending behind Colgate’s brands, both absolutely and as a percent to sales, driving market share performance worldwide.
“Colgate’s leading global market shares in toothpaste and manual toothbrushes remain strong at 44.9% and 32.8%, respectively, on a year-to-date basis. We continue to make great progress in mouthwash as well, with our global market share in that category reaching a record high at 17.0% year to date, up 130 basis points versus prior year.
“Our 2012 Restructuring Program is on track and proceeding smoothly. We also continue to be sharply focused on our aggressive worldwide funding-the-growth programs and our strategic pricing initiatives.”
Mr. Cook concluded, “As we look ahead to 2014, based on the Company’s current growth momentum and our confidence in the strength of our global growth and efficiency program, we are planning for a year of gross margin expansion and strong earnings per share growth in line with the consensus of external analyst estimates, excluding charges related to the 2012 Restructuring Program. This takes into account recent movements in foreign exchange rates but excludes the impact of the recent economic announcements in Venezuela, which we are still evaluating.”
At 11:00 a.m. ET today, Colgate will host a conference call to elaborate on fourth quarter results. To access this call as a webcast, please go to Colgate’s web site at http://www.colgatepalmolive.com.
The following are comments about divisional performance for fourth quarter 2013 versus the year ago period. See attached Geographic Sales Analysis Percentage Changes and Segment Information schedules for additional information on divisional net sales and operating profit.
North America (18% of Company Sales)
North America Net sales increased 2.5% in fourth quarter 2013. Unit volume increased 4.0% with 1.0% lower pricing and 0.5% negative foreign exchange. Organic sales increased 3.0% during the quarter.
Operating profit in North America increased 5% in fourth quarter 2013 to $241 million, or 70 basis points to 31.2% of Net sales. This increase in Operating profit was primarily due to an increase in Gross profit, which was partially offset by an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was mainly driven by cost savings from the Company’s funding-the-growth initiatives, which were partially offset by higher raw and packaging material costs and lower pricing. This increase in Selling, general and administrative expenses was driven by increased advertising investment, which more than offset lower overhead expenses.
In the U.S., new product launches are contributing to volume growth across categories. Market share gains year to date were seen in manual toothbrushes, powered toothbrushes, mouthwash, dish liquids and fabric conditioners. In toothpaste, the success of Colgate Optic White and Colgate Optic White Dual Action toothpastes helped drive market share for the Colgate Optic White brand to 5.3% year to date, up 0.2 share points versus year ago. Strong sales of Colgate Total, Colgate Max Fresh Cool Scrub, Colgate Sensitive SmartFoam with Whitening and Tom’s of Maine toothpastes also contributed to volume growth in the quarter.
In manual toothbrushes, Colgate continued its brand market leadership with its market share in that category reaching a record 38.1% year to date, up 2.1 share points versus year ago. This success was driven by strong sales of Colgate 360° Optic White, Colgate 360° Total Advanced Floss Tip bristles, Colgate Extra Clean and Colgate Slim Soft manual toothbrushes.
Successful products driving volume growth in the U.S. in other categories include Colgate Total Advanced Pro-Shield and Colgate Optic White mouthwashes, Palmolive Soft Touch and Palmolive Lotus Blossom & Lavender dish liquids and Suavitel fabric conditioner.
Exciting new products planned for launch in first quarter 2014 include Colgate Optic White manual toothbrush + built-in whitening pen, Colgate Optic White Platinum Whiten and Protect toothpaste, Speed Stick Gear deodorants with new DryCore technology, Softsoap brand Décor Collection liquid hand soaps, Suavitel Fast Dry fabric conditioner and Palmolive Dish & Sink dish washing liquid.
Latin America (29% of Company Sales)
Latin America Net sales increased 1.0% in fourth quarter 2013. Unit volume increased 10.0% with 2.5% higher pricing and 11.5% negative foreign exchange. Volume gains were led by Venezuela, Brazil, Mexico and Colombia. Organic sales for Latin America increased 12.5% during the quarter.
Operating profit in Latin America increased 3% in fourth quarter 2013 to $363 million, or 50 basis points to 28.7% of Net sales. This increase in Operating profit was primarily due to a decrease in Selling, general and administrative expenses, which was partially offset by a decrease in Gross profit, both as a percentage of Net sales. This decrease in Gross profit was due to higher costs, primarily in Venezuela, which were partially offset by cost savings from the Company’s funding-the-growth initiatives and the benefits of pricing. This decrease in Selling, general and administrative expenses was due to lower overhead expenses and decreased advertising investment, the latter due to the timing of new product launches.
Colgate’s strong leadership in oral care throughout Latin America continued during the quarter with year-to-date toothpaste market share gains in Brazil, Chile, Uruguay, the Dominican Republic and Puerto Rico. Strong sales of Colgate Luminous White, Colgate Luminous White Advanced, Colgate Total Professional Gum Health and Colgate Maximum Cavity Protection plus Neutrazucar toothpastes drove volume growth throughout the region. Colgate strengthened its leadership of the manual toothbrush market throughout the region, driven by strong sales of Colgate 360° Luminous White, Colgate Triple Action and Colgate Premier Clean manual toothbrushes. In mouthwash, Colgate’s strong market share performance continues throughout the region, driven by the success of Colgate Luminous White, Colgate Plax Fresh Tea and Colgate Plax 2 in 1 mouthwashes.
Products in other categories contributing to volume growth include Protex Men, Protex Vitamin E, Palmolive Naturals Olive and Aloe and Palmolive Naturals Argan Oil bar soaps and Axion Oats dish liquid.
Europe/South Pacific (19% of Company Sales)
Europe/South Pacific Net sales decreased 0.5% in fourth quarter 2013. Unit volume increased 2.5% with 4.5% lower pricing and 1.5% positive foreign exchange. Excluding divested businesses, unit volume increased 3.0%. Volume gains in the United Kingdom, Australia and Poland more than offset volume declines in France and Germany. Organic sales for Europe/South Pacific decreased 1.5%.
Operating profit in Europe/South Pacific increased 7% in fourth quarter 2013 to $200 million, or 160 basis points to 23.7% of Net sales. This increase in Operating profit was primarily due to an increase in Gross profit, which was partially offset by an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was primarily driven by savings from the Company’s funding-the-growth initiatives, which were partially offset by lower pricing. This increase in Selling, general and administrative expenses was driven by increased advertising investment, which was partially offset by lower overhead expenses.
Colgate strengthened its oral care leadership in the Europe/South Pacific region with toothpaste share gains led by the United Kingdom, Switzerland, Poland, Germany, Austria, Czech Republic, the Netherlands, Croatia and Serbia. Successful premium products driving share gains include Colgate Max White One Luminous, Colgate Max Fresh ActiClean with SmartFoam and Colgate Total Pro Interdental toothpastes. In the manual toothbrush category, Colgate 360° Interdental and Colgate Slim Soft manual toothbrushes contributed to volume growth throughout the region.
Recent premium innovations contributing to volume growth in other product categories include Colgate Max White One and Colgate Plax Complete Care mouthwashes, Colgate ProClinical electric toothbrush, Sanex Surgras and Palmolive Mediterranean Moments shower gels, Palmolive Hygiene-Plus liquid hand soap, Paic Excel + dish liquid and Soupline Perfect Glide fabric conditioner.
Asia (14% of Company Sales)
Asia Net sales increased 4.5% during fourth quarter 2013. Unit volume increased 10.5% with 1.5% lower pricing and 4.5% negative foreign exchange. Volume gains were led by the Greater China region, India and the Philippines. Organic sales for Asia increased 9.0%.
Operating profit in Asia increased 14% in fourth quarter 2013 to $165 million, or 230 basis points to 28.8% of Net sales. This increase in Operating profit was primarily due to an increase in Gross profit and a decrease in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was primarily due to cost savings from the Company’s funding-the-growth initiatives, partially offset by higher raw and packaging material costs, which included foreign exchange transaction costs, and lower pricing. This decrease in Selling, general and administrative expenses was primarily due to lower overhead expenses and decreased advertising investment, the latter due to the timing of new product launches.
Colgate strengthened its toothpaste leadership in Asia, driven by market share gains in India, China, Thailand, the Philippines and Singapore. Successful new products including Colgate Total Pro Gum Health, Colgate Optic White, Colgate Visible White, Colgate Active Salt Healthy White, Darlie Expert White and Colgate Max Fresh Tea toothpastes contributed to volume growth throughout the region.
Successful new products contributing to volume growth in other categories in the region include Colgate Slim Soft Charcoal and Colgate Slim Soft Raised Tip manual toothbrushes, Colgate Optic White, Colgate Plax Fruity Fresh and Darlie mouthwashes, Palmolive Naturals White + Milk bar soap, Protex Men Power shower gel and Palmolive Naturals Vibrant Color shampoo.
Africa/Eurasia (7% of Company Sales)
Africa/Eurasia Net sales increased 0.5% during fourth quarter 2013. Unit volume increased 6.0% with 1.0% higher pricing and 6.5% negative foreign exchange. Volume gains were led by Russia, the Sub-Saharan Africa region, Turkey and the Central Asia/Caucasus region. Organic sales for Africa/Eurasia increased 7.0%.
Operating profit in Africa/Eurasia increased 9% in fourth quarter 2013 to $76 million, or 170 basis points to 23.4% of Net sales. This increase in Operating profit was primarily due to an increase in Gross profit and a decrease in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was primarily due to cost savings from the Company’s funding-the-growth initiatives and the benefits of pricing, partially offset by higher raw and packaging material costs, which included foreign exchange transaction costs. This decrease in Selling, general and administrative expenses was primarily due to lower overhead expenses which were partially offset by increased advertising investment.
Colgate continued its toothpaste leadership in Africa/Eurasia, driven by market share gains in Russia, South Africa, Turkey, Kenya, Saudi Arabia and Kuwait. Successful products contributing to volume growth in the region include Colgate Optic White, Colgate Altai Herbs, Colgate Total Pro Interdental and Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer toothpastes, Colgate 360° Optic White and Colgate Slim Soft Charcoal manual toothbrushes, Colgate Optic White and Colgate Plax Herbal mouthwashes and Palmolive Gourmet Spa and Protex for Men shower gels.
Hill’s Pet Nutrition (13% of Company Sales)
Hill’s Net sales increased 4.5% during fourth quarter 2013. Unit volume increased 4.0% with 3.0% higher pricing and 2.5% negative foreign exchange. Volume gains in the U.S., Russia and Canada were partially offset by volume declines in Japan. Hill’s organic sales increased 7.0%.
Hill’s Operating profit increased 3% in fourth quarter 2013 to $153 million, while as a percentage of Net sales it decreased 50 basis points to 26.2% of Net sales. This decrease in Operating profit as a percentage of Net sales was primarily due to a decrease in Gross profit, which was partially offset by a decrease in Selling, general and administrative expenses, both as a percentage of Net sales. This decrease in Gross profit was primarily driven by higher raw and packaging material costs, due in part to formulation changes and foreign exchange transaction costs, which were partially offset by cost savings from the Company’s funding-the-growth initiatives and the benefit of pricing. This decrease in Selling, general and administrative expenses was due to lower overhead expenses and decreased advertising investment, the latter due to timing of new product launches.
New product introductions driving volume growth in the U.S. include the recent successful launch of our natural pet food brand, Hill’s Ideal Balance, with natural ingredients perfectly balanced.
New product introductions driving volume growth globally include the launch of breakthrough weight loss nutrition, Hill’s Prescription Diet Metabolic, and the relaunch of Hill’s Science Diet with natural ingredients and improved taste.
Exciting new products planned for launch in first quarter 2014 include Hill’s Ideal Balance Active and Slim & Healthy, Hill’s Science Diet Grain Free, Perfect Weight and Sensitive Stomach and Skin, and Hill’s Prescription Diet c/d Urinary Stress.
***
About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet, Hill’s Prescription Diet and Hill’s Ideal Balance. For more information about Colgate’s global business, visit the Company’s web site at http://www.colgatepalmolive.com. To learn more about Colgate Bright Smiles, Bright Futures® oral health education program, please visit http://www.colgatebsbf.com. CL-E
The Company’s annual meeting of shareholders is currently scheduled for Friday, May 9, 2014.
Market Share Information
Management uses market share information as a key indicator to monitor business health and performance. References to market share in this press release are based on a combination of consumption and market share data provided by third-party vendors, primarily Nielsen, and internal estimates. All market share references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company competes and purchases data. Market share data is subject to limitations on the availability of up-to-date information. We believe that the third-party vendors we use to provide data are reliable, but we have not verified the accuracy or completeness of the data or any assumptions underlying the data. In addition, market share information calculated by the Company may be different from market share information calculated by other companies due to differences in category definitions, the use of data from different countries, internal estimates and other factors.
Cautionary Statement on Forward-Looking Statements
This press release and the related webcast may contain forward-looking statements. Such statements may relate, for example, to sales or volume growth, organic sales growth, profit or profit margin growth, earnings growth, financial goals, the impact of currency devaluations, exchange controls, price controls and labor unrest, including in Venezuela, cost-reduction plans including the 2012 Restructuring Program, tax rates, new product introductions or commercial investment levels. These statements are made on the basis of our views and assumptions as of this time and we undertake no obligation to update these statements. We caution investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. Investors should consult the Company’s filings with the Securities and Exchange Commission (including the information set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012) for information about certain factors that could cause such differences. Copies of these filings may be obtained upon request from the Company’s Investor Relations Department or on the Company’s web site at http://www.colgatepalmolive.com.
Non-GAAP Financial Measures
The following provides information regarding the non-GAAP financial measures used in this earnings release and/or the related webcast:
This release discusses organic sales growth, which is Net sales growth excluding the impact of foreign exchange, acquisitions and divestments. Management believes this measure provides investors with useful supplemental information regarding the Company’s underlying sales trends by presenting sales growth excluding the external factor of foreign exchange as well as the impact from acquisitions and divestments. See “Geographic Sales Analysis Percentage Changes” for the three and twelve months ended December 31, 2013 vs 2012 included with this release for a comparison of organic sales growth to sales growth in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
To supplement Colgate’s Condensed Consolidated Income Statements presented in accordance with GAAP, the Company has disclosed non-GAAP measures of operating results that exclude certain items. Worldwide Gross profit, Gross profit margin, Selling, general and administrative expenses, Selling, general and administrative expenses as a percentage of Net sales, Other (income) expense, net, Operating profit, Operating profit margin, Net income attributable to Colgate-Palmolive Company and Diluted earnings per common share are discussed both as reported (on a GAAP basis) and, as applicable, excluding charges resulting from the implementation of the 2012 Restructuring Program, the one-time charge resulting from the Venezuela devaluation, a charge associated with a European competition law matter, costs related to the sale of land in Mexico and costs associated with various business realignment and other cost-saving initiatives (non-GAAP). Management believes these non-GAAP financial measures provide investors with useful supplemental information regarding the performance of the Company’s ongoing operations. See “Non-GAAP Reconciliations” for the three and twelve months ended December 31, 2013 and 2012 included with this release for a reconciliation of these financial measures to the related GAAP measures.
The Company uses these financial measures internally in its budgeting process and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies.
The Company defines free cash flow before dividends as Net cash provided by operations less Capital expenditures. As management uses this measure to evaluate the Company’s ability to satisfy current and future obligations, repurchase stock, pay dividends and fund future business opportunities, the Company believes that it provides useful information to investors. Free cash flow before dividends is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. Free cash flow before dividends is not a GAAP measurement and may not be comparable to similarly titled measures reported by other companies. See “Condensed Consolidated Statements of Cash Flows” for the twelve months ended December 31, 2013 and 2012 for a comparison of free cash flow before dividends to Net cash provided by operations as reported in accordance with GAAP.
(See attached tables for fourth quarter results.)
Table 1
Colgate-Palmolive Company
Condensed Consolidated Income Statements
For the Three Months Ended December 31, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2013 2012
Net sales $ 4,361 $ 4,286
Cost of sales 1,794 1,781
Gross profit 2,567 2,505
Gross profit margin 58.9% 58.4%
Selling, general and administrative expenses 1,612 1,487
Other (income) expense, net 63 76
Operating profit 892 942
Operating profit margin 20.5% 22.0%
Interest (income) expense, net (1) (5)
Income before income taxes 893 947
Provision for income taxes 292 311
Effective tax rate 32.7% 32.8%
Net income including noncontrolling interests 601 636
Less: Net income attributable to noncontrolling interests 37 38
Net income attributable to Colgate-Palmolive Company $ 564 $ 598
Earnings per common share
Basic $ 0.61 $ 0.63
Diluted $ 0.60 $ 0.63
Average common shares outstanding
Basic 925.7 944.0
Diluted 935.3 952.1
Table 2
Colgate-Palmolive Company
Condensed Consolidated Income Statements
For the Twelve Months Ended December 31, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2013 2012
Net sales $ 17,420 $ 17,085
Cost of sales 7,219 7,153
Gross profit 10,201 9,932
Gross profit margin 58.6% 58.1%
Selling, general and administrative expenses 6,223 5,930
Other (income) expense, net 422 113
Operating profit 3,556 3,889
Operating profit margin 20.4% 22.8%
Interest (income) expense, net (9) 15
Income before income taxes 3,565 3,874
Provision for income taxes 1,155 1,243
Effective tax rate 32.4% 32.1%
Net income including noncontrolling interests 2,410 2,631
Less: Net income attributable to noncontrolling interests 169 159
Net income attributable to Colgate-Palmolive Company $ 2,241 $ 2,472
Earnings per common share
Basic $ 2.41 $ 2.60
Diluted $ 2.38 $ 2.57
Average common shares outstanding
Basic 930.8 952.1
Diluted 939.9 960.2
Table 3
Colgate-Palmolive Company
Condensed Consolidated Balance Sheets
As of December 31, 2013 and 2012
(Dollars in Millions) (Unaudited)
December 31, December 31,
2013 2012
Cash and cash equivalents $ 962 $ 884
Receivables, net 1,636 1,668
Inventories 1,425 1,365
Other current assets 799 639
Property, plant and equipment, net 4,083 3,842
Other assets, including goodwill and intangibles 4,971 4,996
Total assets $ 13,876 $ 13,394
Total debt $ 5,657 $ 5,230
Other current liabilities 3,562 3,432
Other non-current liabilities 2,121 2,342
Total liabilities 11,340 11,004
Total Colgate-Palmolive Company shareholders' equity 2,305 2,189
Noncontrolling interests 231 201
Total liabilities and shareholders' equity $ 13,876 $ 13,394
Supplemental Balance Sheet Information
Debt less cash, cash equivalents and marketable securities* $ 4,522 $ 4,230
Working capital % of sales 0.7 % 0.7 %
* Marketable securities of $173 and $116 as of December 31, 2013 and 2012, respectively, are included in Other current assets.
Table 4
Colgate-Palmolive Company
Condensed Consolidated Statements of Cash Flows
For the Twelve Months Ended December 31, 2013 and 2012
(Dollars in Millions) (Unaudited)
2013 2012
Operating Activities
Net income including noncontrolling interests $ 2,410 $ 2,631
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations:
Depreciation and amortization 439 425
Restructuring and termination benefits, net of cash 182 35
Voluntary benefit plan contributions (101 ) (101 )
Stock-based compensation expense 128 120
Venezuela devaluation charge 172 -
Deferred income taxes 71 63
Cash effects of changes in:
Receivables (37 ) 19
Inventories (97 ) (21 )
Accounts payable and other accruals 24 (5 )
Other non-current assets and liabilities 13 30
Net cash provided by operations 3,204 3,196
Investing Activities
Capital expenditures (670 ) (565 )
Sale of property and non-core product lines 15 72
Purchases of marketable securities and investments (505 ) (545 )
Proceeds from sale of marketable securities and investments 267 147
Payment for acquisitions, net of cash acquired (3 ) (29 )
Other 6 55
Net cash used in investing activities (890 ) (865 )
Financing Activities
Principal payments on debt (7,554 ) (5,011 )
Proceeds from issuance of debt 7,976 5,452
Dividends paid (1,382 ) (1,277 )
Purchases of treasury shares (1,521 ) (1,943 )
Proceeds from exercise of stock options and excess tax benefits 339 478
Net cash used in financing activities (2,142 ) (2,301 )
Effect of exchange rate changes on Cash and cash equivalents (94 ) (24 )
Net increase (decrease) in Cash and cash equivalents 78 6
Cash and cash equivalents at beginning of period 884 878
Cash and cash equivalents at end of period $ 962 $ 884
Supplemental Cash Flow Information
Free cash flow before dividends (Net cash provided by operations less Capital expenditures)
Net cash provided by operations $ 3,204 $ 3,196
Less: Capital expenditures (670 ) (565 )
Free cash flow before dividends $ 2,534 $ 2,631
Income taxes paid $ 1,087 $ 1,280
Table 5
Colgate-Palmolive Company
Segment Information
For the Three and Twelve Months Ended December 31, 2013 and 2012
(Dollars in Millions) (Unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2013 2012 2013 2012
Net sales
Oral, Personal and Home Care
North America $ 772 $ 754 $ 3,072 $ 2,971
Latin America 1,265 1,255 5,012 5,032
Europe/South Pacific 844 848 3,396 3,417
Asia 572 547 2,472 2,264
Africa/Eurasia 325 323 1,257 1,241
Total Oral, Personal and Home Care 3,778 3,727 15,209 14,925
Pet Nutrition 583 559 2,211 2,160
Total Net sales $ 4,361 $ 4,286 $ 17,420 $ 17,085
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2013 2012 2013 2012
Operating profit
Oral, Personal and Home Care
North America $ 241 $ 230 $ 927 $ 810
Latin America 363 354 1,385 1,454
Europe/South Pacific
200 187 805 747
Asia 165 145 698 619
Africa/Eurasia 76 70 268 267
Total Oral, Personal and Home Care 1,045 986 4,083 3,897
Pet Nutrition 153 149 563 589
Corporate(1) (306 ) (193 ) (1,090 ) (597 )
Total Operating Profit $ 892 $ 942 $ 3,556 $ 3,889
Note:
(1) Corporate operations includes costs related to stock options and restricted stock awards, research and development costs, Corporate overhead costs, restructuring and related implementation costs and gains and losses on sales of non-core product lines and assets.
Corporate Operating profit (loss) for the three months ended December 31, 2013 includes costs of $173 associated with the 2012 Restructuring Program, a charge of $5 for a competition law matter in France related to the home care and personal care sectors and costs of $4 related to the sale of land in Mexico. For the three months ended December 31, 2012, Corporate Operating profit (loss) included costs of $89 associated with the 2012 Restructuring Program and costs of $4 related to the sale of land in Mexico.
Corporate Operating profit (loss) for the twelve months ended December 31, 2013 includes costs of $371 associated with the 2012 Restructuring Program, a one-time $172 charge for the impact of the devaluation in Venezuela, a charge of $23 for a competition law matter in France related to the home care and personal care sectors and costs of $18 related to the sale of land in Mexico. For the twelve months ended December 31, 2012, Corporate Operating profit (loss) included costs of $89 associated with the 2012 Restructuring Program, costs of $24 related to the sale of land in Mexico and costs of $21 associated with various business realignment and other cost-saving initiatives.
Table 6
Colgate-Palmolive Company
Geographic Sales Analysis Percentage Changes
For the Three Months Ended December 31, 2013 vs 2012
(Unaudited)
COMPONENTS OF SALES CHANGE
Pricing
Coupons
Sales 3 Months Consumer &
Change Organic As Reported Organic Ex-Divested Trade Foreign
Region
As Reported
Sales Change
Volume
Volume
Volume
Incentives
Exchange
Total Company 2.0 % 6.5 % 6.5 % 6.5 % 6.5 % - % (4.5)%
Europe/South Pacific (0.5)% (1.5)% 2.5 % 3.0 % 3.0 % (4.5)% 1.5 %
Latin America 1.0 % 12.5 % 10.0 % 10.0 % 10.0 % 2.5 % (11.5)%
Asia 4.5 % 9.0 % 10.5 % 10.5 % 10.5 % (1.5)% (4.5)%
Africa/Eurasia 0.5 % 7.0 % 6.0 % 6.0 % 6.0 % 1.0 % (6.5)%
Total International 1.0 % 7.0 % 7.5 % 7.5 % 7.5 % (0.5)% (6.0)%
North America 2.5 % 3.0 % 4.0 % 4.0 % 4.0 % (1.0)% (0.5)%
Total CP Products 1.5 % 6.5 % 7.0 % 7.0 % 7.0 % (0.5)% (5.0)%
Hill's 4.5 % 7.0 % 4.0 % 4.0 % 4.0 % 3.0 % (2.5)%
Emerging Markets (1) 2.0 % 10.5 % 9.5 % 9.5 % 9.5 % 1.0 % (8.5)%
Developed Markets 1.0 % 2.0 % 3.0 % 3.5 % 3.5 % (1.5)% (0.5)%
Notes:
(1) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.
Table 7
Colgate-Palmolive Company
Geographic Sales Analysis Percentage Changes
For the Twelve Months Ended December 31, 2013 vs 2012
(Unaudited)
COMPONENTS OF SALES CHANGE
Pricing
Coupons
Sales 12 Months Consumer &
Change Organic As Reported Organic Ex-Divested Trade Foreign
Region
As Reported
Sales Change
Volume
Volume
Volume
Incentives
Exchange
Total Company 2.0 % 6.0 % 5.0 % 5.0 % 5.0 % 1.0 % (4.0)%
Europe/South Pacific (0.5)% (0.5)% 1.5 % 2.0 % 2.0 % (2.5)% 0.5 %
Latin America (0.5)% 9.5 % 5.5 % 6.0 % 6.0 % 3.5 % (9.5)%
Asia 9.0 % 10.5 % 10.5 % 10.5 % 10.5 % - % (1.5)%
Africa/Eurasia 1.5 % 7.0 % 8.0 % 8.0 % 8.0 % (1.0)% (5.5)%
Total International 1.5 % 6.5 % 6.0 % 6.0 % 6.0 % 0.5 % (5.0)%
North America 3.5 % 3.5 % 3.5 % 3.5 % 3.5 % - % - %
Total CP Products 2.0 % 6.0 % 5.5 % 5.5 % 5.5 % 0.5 % (4.0)%
Hill's 2.5% 5.0 % 1.5 % 1.5 % 1.5 % 3.5 % (2.5)%
Emerging Markets (1) 3.0 % 9.5 % 8.0 % 8.0 % 8.0 % 1.5 % (6.5)%
Developed Markets 1.0 % 2.0 % 1.5 % 2.0 % 2.0 % - % (0.5)%
Notes:
(1) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.
Table 8
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Three Months Ended December 31, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit 2013 2012
Gross profit, GAAP $ 2,567 $ 2,505
2012 Restructuring Program 6 2
Costs related to the sale of land in Mexico 4 4
Gross profit, non-GAAP $ 2,577 $ 2,511
Basis Point
Gross Profit Margin 2013 2012 Change
Gross profit margin, GAAP 58.9 % 58.4 % 50
2012 Restructuring Program 0.1 % 0.1 %
Costs related to the sale of land in Mexico 0.1 % 0.1 %
Gross profit margin, non-GAAP 59.1 % 58.6 % 50
Selling, General and Administrative Expenses 2013 2012
Selling, general and administrative expenses, GAAP $ 1,612 $ 1,487
2012 Restructuring Program (106 ) (6 )
Selling, general and administrative expenses, non-GAAP $ 1,506 $ 1,481
Basis Point
Selling, General and Administrative Expenses as a Percentage of Net Sales 2013 2012 Change
Selling, general and administrative expenses as a percentage of Net sales, GAAP 37.0 % 34.7 % 230
2012 Restructuring Program (2.5 %) (0.1 )%
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP 34.5 % 34.6 % (10 )
Other (Income) Expense, Net 2013 2012
Other (income) expense, net, GAAP $ 63 $ 76
2012 Restructuring Program (61 ) (81 )
Charge for a French competition law matter (5 ) -
Other (income) expense, net, non-GAAP $ (3 ) $ (5 )
Operating Profit 2013 2012 % Change
Operating profit, GAAP $ 892 $ 942 (5 %)
2012 Restructuring Program 173 89
Charge for a French competition law matter 5 -
Costs related to the sale of land in Mexico 4 4
Operating profit, non-GAAP $ 1,074 $ 1,035 4 %
Basis Point
Operating Profit Margin 2013 2012 Change
Operating profit margin, GAAP 20.5 % 22.0 % (150 )
2012 Restructuring Program 3.9 % 2.0 %
Charge for a French competition law matter 0.1 % -
Costs related to the sale of land in Mexico 0.1 % 0.1 %
Operating profit margin, non-GAAP 24.6 % 24.1 % 50
Net Income Attributable to Colgate-Palmolive Company 2013 2012 % Change
Net income attributable to Colgate-Palmolive Company, GAAP $ 564 $ 598 (6 %)
2012 Restructuring Program 125 70
Charge for a French competition law matter 5 -
Costs related to the sale of land in Mexico 3 3
Net income attributable to Colgate-Palmolive Company, non-GAAP $ 697 $ 671 4 %
Earnings Per Common Share, Diluted (1) (2) 2013 2012 % Change
Diluted earnings per common share, GAAP $ 0.60 $ 0.63 (5 %)
2012 Restructuring Program 0.14 0.07
Charge for a French competition law matter 0.01 -
Costs related to the sale of land in Mexico - -
Diluted earnings per common share, non-GAAP $ 0.75 $ 0.70 7 %
(1) The impact of non-GAAP adjustments on the diluted earnings per share may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding.
(2) As a result of the two-for-one stock split, effective May 15, 2013, all historical per share data and number of shares were retroactively adjusted. Diluted earnings per share were computed independently for each quarter presented.
Table 9
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Twelve Months Ended December 31, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit 2013 2012
Gross profit, GAAP $ 10,201 $ 9,932
2012 Restructuring Program 32 2
Costs related to the sale of land in Mexico 15 24
Business realignment and other cost-saving initiatives - 5
Gross profit, non-GAAP $ 10,248 $ 9,963
Basis Point
Gross Profit Margin 2013 2012 Change
Gross profit margin, GAAP 58.6 % 58.1 % 50
2012 Restructuring Program 0.2 % -
Costs related to the sale of land in Mexico - 0.2 %
Gross profit margin, non-GAAP 58.8 % 58.3 % 50
Selling, General and Administrative Expenses 2013 2012
Selling, general and administrative expenses, GAAP $ 6,223 $ 5,930
2012 Restructuring Program (137 ) (6 )
Business realignment and other cost-saving initiatives - (14 )
Selling, general and administrative expenses, non-GAAP $ 6,086 $ 5,910
Basis Point
Selling, General and Administrative Expenses as a Percentage of Net Sales 2013 2012 Change
Selling, general and administrative expenses as a percentage of Net sales, GAAP 35.7 % 34.7 % 100
2012 Restructuring Program (0.8 %) -
Business realignment and other cost-saving initiatives - (0.1 %)
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP 34.9 % 34.6 % 30
Other (Income) Expense, Net 2013 2012
Other (income) expense, net, GAAP $ 422 $ 113
2012 Restructuring Program (202 ) (81 )
Venezuela devaluation charge (172 ) -
Charge for a French competition law matter (23 ) -
Costs related to the sale of land in Mexico (3 ) -
Business realignment and other cost-saving initiatives - (2 )
Other (income) expense, net, non-GAAP $ 22 $ 30
Operating Profit 2013 2012 % Change
Operating profit, GAAP $ 3,556 $ 3,889 (9 %)
2012 Restructuring Program 371 89
Venezuela devaluation charge 172 -
Charge for a French competition law matter 23 -
Costs related to the sale of land in Mexico 18 24
Business realignment and other cost-saving initiatives - 21
Operating profit, non-GAAP $ 4,140 $ 4,023 3 %
Basis Point
Operating Profit Margin 2013 2012 Change
Operating profit margin, GAAP 20.4 % 22.8 % (240 )
2012 Restructuring Program 2.2 % 0.5 %
Venezuela devaluation charge 1.0 % -
Charge for a French competition law matter 0.1 % -
Costs related to the sale of land in Mexico 0.1 % 0.1 %
Business realignment and other cost-saving initiatives - 0.1 %
Operating profit margin, non-GAAP 23.8 % 23.5 % 30
Net Income Attributable to Colgate-Palmolive Company 2013 2012 % Change
Net income attributable to Colgate-Palmolive Company, GAAP $ 2,241 $ 2,472 (9 %)
2012 Restructuring Program 278 70
Venezuela devaluation charge 111 -
Charge for a French competition law matter 23 -
Costs related to the sale of land in Mexico 12 18
Business realignment and other cost-saving initiatives - 14
Net income attributable to Colgate-Palmolive Company, non-GAAP $ 2,665 $ 2,574 4 %
Earnings Per Common Share, Diluted (1) (2) 2013 2012 % Change
Diluted earnings per common share, GAAP $ 2.38 $ 2.57 (7 %)
2012 Restructuring Program 0.30 0.07
Venezuela devaluation charge 0.12 -
Charge for a French competition law matter 0.03 -
Costs related to the sale of land in Mexico 0.01 0.02
Business realignment and other cost-saving initiatives - 0.02
Diluted earnings per common share, non-GAAP $ 2.84 $ 2.68 6 %
(1) The impact of non-GAAP adjustments on the diluted earnings per share may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding.
(2) As a result of the two-for-one stock split, effective May 15, 2013, all historical per share data and number of shares were retroactively adjusted. Diluted earnings per share were computed independently for each quarter and the year to date period presented. As a result of the stock split, changes in shares outstanding during the year and rounding, the sum of the quarters' earnings per share may not necessarily equal the earnings per share for the year to date period.
Contact:
Colgate-Palmolive Company
Bina Thompson, 212-310-3072
Hope Spiller, 212-310-2291
Drmicrocap
12年前
Colgate Announces 2nd Quarter 2013 Results
Strong Organic Sales Growth Worldwide
Business WirePress Release: Colgate-Palmolive Company –
Colgate-Palmolive Company (CL) today reported worldwide Net sales of $4,346 million in second quarter 2013, an increase of 2.0% versus second quarter 2012. Global unit volume grew 4.0%, pricing increased 1.0% and foreign exchange was negative 3.0%. Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 5.5%.
Net income and Diluted earnings per share in second quarter 2013 were $561 million and $0.60, respectively. Net income in second quarter 2013 included $101 million ($0.10 per diluted share) of aftertax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program (the “2012 Restructuring Program”), costs associated with the sale of land in Mexico and a charge associated with an existing European competition law matter.
Net income and Diluted earnings per share in second quarter 2012 were $627 million and $0.65, respectively. Net income in second quarter 2012 included aftertax charges of $14 million ($0.02 per diluted share) resulting from the items described in Table 8.
Excluding the above noted items in both periods, Net income in second quarter 2013 was $662 million, an increase of 3% versus second quarter 2012, and Diluted earnings per share in second quarter 2013 was $0.70, an increase of 4% versus second quarter 2012.
Gross profit margin was 58.3% in second quarter 2013 versus 57.7% in the year ago quarter. Excluding the above noted items in both periods, Gross profit margin was 58.6% in second quarter 2013, an increase of 70 basis points versus the year ago quarter, as higher pricing and cost savings from the Company’s funding-the-growth initiatives more than offset higher raw and packaging material costs.
Selling, general and administrative expenses were 35.1% of Net sales in second quarter 2013 versus 34.3% in second quarter 2012. Excluding the above noted items in both periods, Selling, general and administrative expenses increased by 60 basis points to 34.8% of Net sales in second quarter 2013, as advertising investment increased by 70 basis points and overhead expenses decreased by 10 basis points, both as a percentage of Net sales. Worldwide advertising investment increased 9% versus the year ago quarter to $497 million.
Operating profit decreased 8% to $906 million in second quarter 2013 compared to $982 million in second quarter 2012. Excluding the above noted items in both periods, Operating profit increased 3% to $1,032 million.
Net cash provided by operations year to date increased 11% to $1,325 million, compared to $1,193 million in the comparable 2012 period. The increase was driven by strong operating earnings as well as a continued tight focus on working capital. Free cash flow before dividends (Net cash provided by operations less Capital expenditures) exceeded 100% of Net income. Working capital as a percentage of Net sales improved to negative 0.2% versus 2.8% in the year ago period, mainly due to accrued liabilities related to the 2012 Restructuring Program and the timing of dividend payments.
Ian Cook, Chairman, President and Chief Executive Officer, commented on the results and outlook excluding the 2013 and 2012 items noted above, “We are delighted that our strong growth momentum continued on both the top and bottom lines. For the fifth consecutive quarter, gross profit margin, operating profit margin and net income as a percent of sales all increased versus the year ago period.
“The strong 5.5% organic sales growth was led by the emerging markets where organic sales grew a robust 8.5%. All operating divisions achieved positive unit volume growth in the quarter. We were particularly pleased to see a return to unit volume growth at Hill’s one quarter earlier than expected.
“Advertising investment increased versus year ago, both absolutely and as a percent to sales, and we continue to plan for higher levels of commercial investment in the balance of the year in support of a very full pipeline of new products worldwide.
“Colgate’s global market shares in toothpaste and manual toothbrushes are both at record highs year to date. Colgate’s share of the global toothpaste market strengthened to 45.4% year to date, up 0.1 share points versus year ago. Our global leadership in manual toothbrushes also strengthened during the quarter with Colgate’s global market share in that category reaching 33.3% year to date, up 0.4 share points versus year ago.
“Looking forward, we expect our growth momentum to continue as we progress through the year. We are pleased that our global restructuring program is on track and proceeding smoothly. We also continue to be sharply focused on our aggressive funding-the-growth programs and our strategic worldwide pricing initiatives.
“Based on this, we continue to anticipate another year of strong organic sales growth and gross margin expansion in 2013. In light of the ongoing impact of the Venezuela currency devaluation and the recent volatility in foreign exchange in other countries, we now expect diluted earnings per share to grow 4.5% to 5.5% for the year, on a dollar basis, assuming average exchange rates in the balance of the year are equal to current spot rates.”
At 11:00 a.m. ET today, Colgate will host a conference call to elaborate on second quarter results. To access this call as a webcast, please go to Colgate’s web site at http://www.colgatepalmolive.com.
The following are comments about divisional performance for second quarter 2013 versus the year ago period. See attached Geographic Sales Analysis Percentage Changes and Segment Information schedules for additional information on divisional net sales and operating profit.
North America (18% of Company Sales)
North America Net sales increased 5.0% in second quarter 2013. Unit volume increased 6.0% with 1.0% lower pricing and foreign exchange was even with the year ago quarter. Organic sales increased 5.0% during the quarter.
Operating profit in North America increased 20% in the second quarter of 2013 to $227 million, or 370 basis points to 29.8% of Net sales. This increase in Operating profit was primarily due to an increase in Gross profit and a decrease in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was mainly driven by lower raw and packing material costs and cost savings from the Company’s funding-the-growth initiatives which were partially offset by lower pricing. This decrease in Selling, general and administrative expenses was due to lower overhead costs which was partially offset by higher advertising investment.
In the U.S., new product launches are contributing to volume growth across categories. Market share gains year to date were seen in manual toothbrushes, powered toothbrushes, mouthwash, body washes and fabric conditioners. In toothpaste, the success of Colgate Optic White and Colgate Optic White Dual Action toothpastes helped drive market share for the Colgate Optic White brand to 5.6% year to date, up 1.0 share points versus year ago. In manual toothbrushes, Colgate achieved brand market leadership with its market share in that category reaching a record 37.2% year to date, up 0.6 share points versus year ago. This success was driven by strong sales of Colgate 360° Optic White, Colgate 360° Total Advanced Floss Tip bristles and Colgate Extra Clean manual toothbrushes.
Successful new products driving volume growth in the U.S. in other categories include Colgate Total Advanced Pro-Shield and Colgate Optic White mouthwashes, Softsoap brand Acai Berry & Tropical Water and Softsoap brand Coconut Island Quench body washes, Palmolive Soft Touch and Ajax with Aloe dish liquids and Suavitel Silky Essence fabric conditioner.
Exciting new products launching in third quarter 2013 include Colgate MaxFresh Cool Scrub and Colgate Sensitive SmartFoam with Whitening toothpastes and Colgate SlimSoft manual toothbrush.
Latin America (29% of Company Sales)
Latin America Net sales decreased 1.5% in second quarter 2013. Unit volume increased 2.0% with 4.5% higher pricing and 8.0% negative foreign exchange. Volume gains were led by Mexico, Brazil, Venezuela and the Southern Cone region. Organic sales for Latin America increased 7.0% during the quarter.
Operating profit in Latin America decreased 6% in the second quarter of 2013 to $352 million, or 120 basis points to 27.5% of Net sales. This decrease in Operating profit was primarily due to a decrease in Gross profit and an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This decrease in Gross profit was due to higher costs, primarily in Venezuela, which were partially offset by cost savings from the Company’s funding-the-growth initiatives and higher pricing. This increase in Selling, general and administrative expenses was primarily due to higher advertising investment and higher overhead expenses due primarily to higher costs in Venezuela.
Colgate’s strong leadership in oral care throughout Latin America continued during the quarter with year-to-date toothpaste market share gains in Brazil, Chile, Paraguay, Uruguay, the Dominican Republic and Puerto Rico. Strong sales of Colgate Luminous White, Colgate Total Professional Gum Health and Colgate Triple Action Extra Whitening toothpastes drove volume growth throughout the region. Colgate strengthened its leadership of the manual toothbrush market throughout the region, driven by strong sales of Colgate 360° Luminous White, Colgate Triple Action and Colgate Premier manual toothbrushes. In mouthwash, Colgate’s year-to-date market share is at a record high in the region with gains driven by Colgate Luminous White mouthwash.
Products in other categories contributing to volume growth include Protex Men, Protex Vitamin E and Palmolive Naturals Olive and Aloe bar soaps, Lady Speed Stick and Speed Stick deodorants, and Axion dish liquid.
Europe/South Pacific (19% of Company Sales)
Europe/South Pacific Net sales in second quarter 2013 decreased 3.0%. Unit volume increased 0.5% with 3.0% lower pricing and 0.5% negative foreign exchange. Volume gains in the United Kingdom, Germany and Australia were partially offset by volume declines in France and Greece. Organic sales for Europe/South Pacific decreased 2.0%.
Operating profit in Europe/South Pacific increased 6% in the second quarter of 2013 to $189 million, or 180 basis points to 22.9% of Net sales. The increase in Operating profit was primarily due to an increase in Gross profit and a decrease in Selling, general and administrative expenses both as a percentage of Net sales. This increase in Gross profit was primarily driven by savings from the Company’s funding-the-growth initiatives and lower raw and packing material costs, which were partially offset by lower pricing. This decrease in Selling, general and administrative expenses was driven by higher advertising investment which was more than offset by lower overhead costs.
Colgate continued its oral care leadership in the Europe/South Pacific region with toothpaste share gains led by the United Kingdom, France, Poland, Holland, Czech Republic, Croatia and Slovakia. Successful premium products driving share gains include Colgate Max White One Luminous, Colgate MaxFresh ActiClean with SmartFoam and Colgate Total Pro Gum Health toothpastes. In the manual toothbrush category, Colgate 360° Max White One and elmex Erosion manual toothbrushes contributed to volume growth throughout the region.
Recent premium innovations contributing to volume growth in other product categories include Colgate Max White One, Colgate Total Pro Gum Health and elmex Senstive Professional mouthwashes, Colgate ProClinical electric toothbrush, Sanex Men Dermo Double Protect deodorant, Sanex Surgras and Palmolive Mediterranean Moments shower gels, Ajax Pure Home liquid cleaner and Soupline Aroma Sensations fabric conditioner.
Greater Asia/Africa (21% of Company Sales)
Greater Asia/Africa Net sales and unit volume increased 8.0% and 9.5%, respectively, during second quarter 2013. Pricing was even with the year ago period and foreign exchange was negative 1.5%. Volume gains were led by India, the Greater China region, Thailand, Turkey and Russia. Organic sales for Greater Asia/Africa increased 9.5%.
Operating profit in Greater Asia/Africa increased 8% in the second quarter of 2013 to $238 million, and remained flat at 25.6% of Net sales, as an increase in Gross profit was partially offset by an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was primarily due to cost savings from the Company’s funding-the-growth initiatives, partially offset by higher raw and packing material costs. This increase in Selling, general and administrative expenses was driven by higher advertising investment which was partially offset by lower overhead costs.
Colgate continued its toothpaste leadership in Greater Asia, driven by market share gains in India, China, Russia, South Africa, Turkey, Thailand, the Philippines, Singapore and Hong Kong. Successful new products including Colgate 360° Pro Gum Health, Colgate Optic White, Colgate Visible White and Darlie Enamel toothpastes contributed to volume growth throughout the region.
Successful products contributing to volume growth in other categories in the region include Colgate Slim Soft and Colgate 360° Surround manual toothbrushes, Colgate Optic White and Colgate Plax Herbal mouthwashes and Protex for Men shower gel.
Hill’s Pet Nutrition (13% of Company Sales)
Hill’s Net sales increased 3.5% during second quarter 2013. Unit volume increased 2.5%, pricing increased 3.0% and foreign exchange was negative 2.0%. Volume gains in the U.S., Russia, Korea, Germany, France and Brazil were partially offset by volume declines in Japan, Italy and the United Kingdom. Hill’s organic sales increased 5.5%.
Hill’s Operating profit decreased 6% in the second quarter of 2013 to $136 million, or 250 basis points to 24.8% of Net sales. This decrease in Operating profit was primarily due to a decrease in Gross profit and an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This decrease in Gross profit was primarily driven by higher raw and packaging material costs due in part to formulation changes, which was partially offset by cost savings from the Company’s funding-the-growth initiatives and higher pricing. This increase in Selling, general and administrative expenses was due to increased investment in customer development initiatives and higher advertising investment.
New product introductions driving volume growth in the U.S. include the successful launch of a new natural pet food brand, Hill’s Ideal Balance, with natural ingredients perfectly balanced.
New product introductions driving volume growth globally, include the launch of breakthrough weight loss nutrition, Hill’s Prescription Diet Metabolic and the relaunch of Hill’s Science Diet with natural ingredients and improved taste.
***
About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Mennen, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. For more information about Colgate’s global business, visit the Company’s web site at http://www.colgatepalmolive.com. To learn more about Colgate Bright Smiles, Bright Futures® oral health education program, please visit http://www.colgatebsbf.com. CL-E
Market Share Information
Management uses market share information as a key indicator to monitor business health and performance. References to market share in this press release are based on a combination of consumption and market share data provided by third-party vendors, primarily Nielsen, and internal estimates. All market share references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company competes and purchases data. Market share data is subject to limitations on the availability of up-to-date information. We believe that the third-party vendors we use to provide data are reliable, but we have not verified the accuracy or completeness of the data or any assumptions underlying the data. In addition, market share information calculated by the Company may be different from market share information calculated by other companies due to differences in category definitions, the use of data from different countries, internal estimates and other factors.
Cautionary Statement on Forward-Looking Statements
This press release and the related webcast (other than historical information) may contain forward-looking statements. Such statements may relate, for example, to sales or volume growth, organic sales growth, profit or profit margin growth, earnings growth, financial goals, the impact of currency devaluations, exchange controls, price controls and labor unrest, including in Venezuela, cost-reduction plans including the 2012 Restructuring Program, tax rates, new product introductions or commercial investment levels. These statements are made on the basis of our views and assumptions as of this time and we undertake no obligation to update these statements. We caution investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. Investors should consult the Company’s filings with the Securities and Exchange Commission (including the information set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012) for information about certain factors that could cause such differences. Copies of these filings may be obtained upon request from the Company’s Investor Relations Department or on the Company’s web site at http://www.colgatepalmolive.com.
Non-GAAP Financial Measures
The following provides information regarding the non-GAAP financial measures used in this earnings release and/or the related webcast:
This release discusses organic sales growth, which is Net sales growth excluding the impact of foreign exchange, acquisitions and divestments. Management believes this measure provides investors with useful supplemental information regarding the Company’s underlying sales trends by presenting sales growth excluding the external factor of foreign exchange as well as the impact from acquisitions and divestments. See “Geographic Sales Analysis Percentage Changes” for the three and six months ended June 30, 2013 vs 2012 included with this release for a comparison of organic sales growth to sales growth in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
To supplement Colgate’s Condensed Consolidated Income Statements presented in accordance with GAAP, the Company has disclosed non-GAAP measures of operating results that exclude certain items. Worldwide Gross profit, Gross profit margin, Selling, general and administrative expenses, Selling, general and administrative expenses as a percentage of Net sales, Other (income) expense, net, Operating profit, Operating profit margin, Net income attributable to Colgate-Palmolive Company and Diluted earnings per common share are discussed both as reported (on a GAAP basis) and, as applicable, excluding charges resulting from the implementation of the 2012 Restructuring Program, the one-time charge resulting from the Venezuela devaluation, a charge associated with a European competition law matter, costs related to the sale of land in Mexico and costs associated with various business realignment and other cost-saving initiatives (non-GAAP). Management believes these non-GAAP financial measures provide investors with useful supplemental information regarding the performance of the Company’s ongoing operations. See “Non-GAAP Reconciliations” for the three and six months ended June 30, 2013 and 2012 included with this release for a reconciliation of these financial measures to the related GAAP measures.
The Company uses these financial measures internally in its budgeting process and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies.
The Company defines free cash flow before dividends as Net cash provided by operations less Capital expenditures. As management uses this measure to evaluate the Company’s ability to satisfy current and future obligations, repurchase stock, pay dividends and fund future business opportunities, the Company believes that it provides useful information to investors. Free cash flow before dividends is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. Free cash flow before dividends is not a GAAP measurement and may not be comparable to similarly titled measures reported by other companies. See “Condensed Consolidated Statements of Cash Flows” for the six months ended June 30, 2013 and 2012 for a comparison of free cash flow before dividends to Net cash provided by operations as reported in accordance with GAAP.
(See attached tables for second quarter results.)
Table 1
Colgate-Palmolive Company
Condensed Consolidated Income Statements
For the Three Months Ended June 30, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2013 2012
Net sales $ 4,346 $ 4,267
Cost of sales 1,812 1,806
Gross profit 2,534 2,461
Gross profit margin 58.3 % 57.7 %
Selling, general and administrative expenses 1,526 1,464
Other (income) expense, net 102 15
Operating profit 906 982
Operating profit margin 20.8 % 23.0 %
Interest expense, net (5 ) 6
Income before income taxes 911 976
Provision for income taxes 307 311
Effective tax rate 33.7 % 31.9 %
Net income including noncontrolling interests 604 665
Less: Net income attributable to noncontrolling interests 43 38
Net income attributable to Colgate-Palmolive Company $ 561 $ 627
Earnings per common share
Basic $ 0.60 $ 0.66
Diluted $ 0.60 $ 0.65
Average common shares outstanding
Basic 933.1 954.6
Diluted 942.3 962.7
Table 2
Colgate-Palmolive Company
Condensed Consolidated Income Statements
For the Six Months Ended June 30, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2013 2012
Net sales $ 8,661 $ 8,467
Cost of sales 3,612 3,569
Gross profit 5,049 4,898
Gross profit margin 58.3 % 57.8 %
Selling, general and administrative expenses 3,062 2,942
Other (income) expense, net 339 36
Operating profit 1,648 1,920
Operating profit margin 19.0 % 22.7 %
Interest expense, net (8 ) 16
Income before income taxes 1,656 1,904
Provision for income taxes 546 606
Effective tax rate 33.0 % 31.8 %
Net income including noncontrolling interests 1,110 1,298
Less: Net income attributable to noncontrolling interests 89 78
Net income attributable to Colgate-Palmolive Company $ 1,021 $ 1,220
Earnings per common share
Basic $ 1.09 $ 1.27
Diluted $ 1.08 $ 1.26
Average common shares outstanding
Basic 934.8 957.4
Diluted 943.6 965.2
Table 3
Colgate-Palmolive Company
Condensed Consolidated Balance Sheets
As of June 30, 2013, December 31, 2012 and June 30, 2012
(Dollars in Millions) (Unaudited)
June 30, December 31, June 30,
2013 2012 2012
Cash and cash equivalents $ 884 $ 884 $ 995
Receivables, net 1,778 1,668 1,785
Inventories 1,440 1,365 1,368
Other current assets 765 639 687
Property, plant and equipment, net 3,776 3,842 3,625
Other assets, including goodwill and intangibles 4,844 4,996 4,693
Total assets $ 13,487 $ 13,394 $ 13,153
Total debt $ 5,628 $ 5,230 $ 5,363
Other current liabilities 3,848 3,432 3,271
Other non-current liabilities 2,207 2,342 2,009
Total liabilities 11,683 11,004 10,643
Total Colgate-Palmolive Company shareholders' equity 1,531 2,189 2,306
Noncontrolling interests 273 201 204
Total liabilities and shareholders' equity $ 13,487 $ 13,394 $ 13,153
Supplemental Balance Sheet Information
Debt less cash, cash equivalents and marketable securities* $ 4,570 $ 4,230 $ 4,282
Working capital % of sales (0.2 )% 0.7 % 2.8 %
*
Marketable securities of $174, $116 and $86 as of June 30, 2013, December 31, 2012 and June 30, 2012, respectively, are included in Other current assets.
Table 4
Colgate-Palmolive Company
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2013 and 2012
(Dollars in Millions) (Unaudited)
2013 2012
Operating Activities
Net income including noncontrolling interests $ 1,110 $ 1,298
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations:
Depreciation and amortization 221 211
Restructuring and termination benefits, net of cash 105 (27 )
Voluntary benefit plan contributions (100 ) (100 )
Stock-based compensation expense 52 48
Venezuela devaluation charge 172 -
Deferred income taxes (48 ) 14
Cash effects of changes in:
Receivables (194 ) (119 )
Inventories (118 ) (46 )
Accounts payable and other accruals 89 (148 )
Other non-current assets and liabilities 36 62
Net cash provided by operations 1,325 1,193
Investing Activities
Capital expenditures (243 ) (189 )
Purchases of marketable securities and investments (246 ) (219 )
Proceeds from sale of marketable securities and investments 92 71
Payment for acquisitions, net of cash acquired - (29 )
Other (1 ) 45
Net cash used in investing activities (398 ) (321 )
Financing Activities
Principal payments on debt (3,425 ) (2,307 )
Proceeds from issuance of debt 3,803 2,873
Dividends paid (625 ) (593 )
Purchases of treasury shares (771 ) (894 )
Proceeds from exercise of stock options and excess tax benefits 172 191
Net cash used in financing activities (846 ) (730 )
Effect of exchange rate changes on Cash and cash equivalents (81 ) (25 )
Net increase (decrease) in Cash and cash equivalents - 117
Cash and cash equivalents at beginning of period 884 878
Cash and cash equivalents at end of period $ 884 $ 995
Supplemental Cash Flow Information
Free cash flow before dividends (Net cash provided by operations less Capital expenditures)
Net cash provided by operations $ 1,325 $ 1,193
Less: Capital expenditures (243 ) (189 )
Free cash flow before dividends $ 1,082 $ 1,004
Income taxes paid $ 561 $ 682
Table 5
Colgate-Palmolive Company
Segment Information
For the Three and Six Months Ended June 30, 2013 and 2012
(Dollars in Millions) (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2013 2012 2013 2012
Net sales
Oral, Personal and Home Care
North America $ 762 $ 727 $ 1,526 $ 1,451
Latin America 1,282 1,300 2,496 2,501
Europe/South Pacific 824 850 1,672 1,704
Greater Asia/Africa 929 859 1,884 1,738
Total Oral, Personal and Home Care 3,797 3,736 7,578 7,394
Pet Nutrition 549 531 1,083 1,073
Total Net sales $ 4,346 $ 4,267 $ 8,661 $ 8,467
Three Months Ended
June 30,
Six Months Ended
June 30,
2013 2012 2013 2012
Operating profit
Oral, Personal and Home Care
North America $ 227 $ 190 $ 442 $ 367
Latin America 352 373 664 723
Europe/South Pacific 189 179 389 362
Greater Asia/Africa 238 220 486 440
Total Oral, Personal and Home Care 1,006 962 1,981 1,892
Pet Nutrition 136 145 272 293
Corporate(1) (236 ) (125 ) (605 ) (265 )
Total Operating profit
$ 906 $ 982 $ 1,648 $ 1,920
Note:
(1) Corporate operations includes costs related to stock options and restricted stock awards, research and development costs, Corporate overhead costs, restructuring and related implementation costs and gains and losses on sales of non-core product lines and assets.
Corporate Operating profit(loss) for the three months ended June 30, 2013 includes costs of $102 associated with the 2012 Restructuring Program, a charge of $18 for a competition law matter in France related to the home care and personal care sectors and costs of $6 related to the sale of land in Mexico. For the three months ended June 30, 2012, Corporate Operating profit(loss) included costs of $6 related to the sale of land in Mexico and costs of $13 associated with various business realignment and other cost-saving initiatives.
Corporate Operating profit(loss) for the six months ended June 30, 2013 includes costs of $168 associated with the 2012 Restructuring Program, a one-time $172 charge for the impact of the devaluation in Venezuela, a charge of $18 for a competition law matter in France related to the home care and personal care sectors and costs of $11 related to the sale of land in Mexico. For the six months ended June 30, 2012, Corporate Operating profit(loss) included costs of $13 related to the sale of land in Mexico and costs of $18 associated with various business realignment and other cost-saving initiatives.
Table 6
Colgate-Palmolive Company
Geographic Sales Analysis Percentage Changes
For the Three Months Ended June 30, 2013 vs 2012
(Unaudited)
COMPONENTS OF SALES CHANGE
Pricing
Coupons
Sales 3 Months Consumer &
Change Organic As Reported Organic Ex-Divested Trade Foreign
Region
As Reported
Sales Change
Volume
Volume
Volume
Incentives
Exchange
Total Company 2.0 % 5.5 % 4.0 % 4.5 % 4.5 % 1.0 % (3.0)%
Europe/South Pacific (3.0)% (2.0)% 0.5 % 1.0 % 1.0 % (3.0)% (0.5)%
Latin America (1.5)% 7.0 % 2.0 % 2.5 % 2.5 % 4.5 % (8.0)%
Greater Asia/Africa 8.0 % 9.5 % 9.5 % 9.5 % 9.5 % - % (1.5)%
Total International 1.0 % 5.0 % 4.0 % 4.0 % 4.0 % 1.0 % (4.0)%
North America 5.0 % 5.0 % 6.0 % 6.0 % 6.0 % (1.0)% - %
Total CP Products 1.5 % 5.0 % 4.5 % 4.5 % 4.5 % 0.5 % (3.5)%
Hill's 3.5 % 5.5 % 2.5 % 2.5 % 2.5 % 3.0 % (2.0)%
Emerging Markets (1) 3.0 % 8.5 % 5.5 % 6.0 % 6.0 % 2.5 % (5.0)%
Developed Markets 0.5 % 1.5 % 2.5 % 2.5 % 2.5 % (1.0)% (1.0)%
Notes:
(1) Emerging Markets include Latin America, Greater Asia/Africa (excluding Japan) and Central Europe.
Table 7
Colgate-Palmolive Company
Geographic Sales Analysis Percentage Changes
For the Six Months Ended June 30, 2013 vs 2012
(Unaudited)
COMPONENTS OF SALES CHANGE
Pricing
Coupons
Sales 6 Months Consumer &
Change Organic As Reported Organic Ex-Divested Trade Foreign
Region
As Reported
Sales Change
Volume
Volume
Volume
Incentives
Exchange
Total Company 2.5 % 5.5 % 4.0 % 4.0 % 4.5 % 1.5 % (3.0)%
Europe/South Pacific (2.0)% (1.0)% - % 0.5 % 0.5 % (1.5)% (0.5)%
Latin America - % 8.0 % 4.0 % 4.5 % 4.5 % 3.5 % (7.5)%
Greater Asia/Africa 8.5 % 10.0 % 10.5 % 10.5 % 10.5 % (0.5)% (1.5)%
Total International 2.0 % 6.0 % 4.5 % 5.0 % 5.0 % 1.0 % (3.5)%
North America 5.0 % 5.0 % 4.5 % 4.5 % 4.5 % 0.5 % - %
Total CP Products 2.5 % 6.0 % 4.5 % 5.0 % 5.0 % 1.0 % (3.0)%
Hill's 1.0% 3.0 % (0.5)% (0.5)% (0.5)% 3.5 % (2.0)%
Emerging Markets (1) 3.5 % 9.0 % 6.5 % 7.0 % 7.0 % 2.0 % (5.0)%
Developed Markets 1.0 % 2.0 % 1.5 % 1.5 % 1.5 % 0.5 % (1.0)%
Notes:
(1) Emerging Markets include Latin America, Greater Asia/Africa (excluding Japan) and Central Europe.
Table 8
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Three Months Ended June 30, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit 2013 2012
Gross profit, GAAP $ 2,534 $ 2,461
2012 Restructuring Program 10 -
Costs related to the sale of land in Mexico 4 6
Business realignment and other cost-saving initiatives - 2
Gross profit, non-GAAP $ 2,548 $ 2,469
Basis Point
Gross Profit Margin 2013 2012 Change
Gross profit margin, GAAP 58.3 % 57.7 % 60
2012 Restructuring Program 0.2 % -
Costs related to the sale of land in Mexico 0.1 % 0.1 %
Business realignment and other cost-saving initiatives - 0.1 %
Gross profit margin, non-GAAP 58.6 % 57.9 % 70
Selling, General and Administrative Expenses 2013 2012
Selling, general and administrative expenses, GAAP $ 1,526 $ 1,464
2012 Restructuring Program (14 ) -
Business realignment and other cost-saving initiatives - (5 )
Selling, general and administrative expenses, non-GAAP $ 1,512 $ 1,459
Basis Point
Selling, General and Administrative Expenses as a Percentage of Net Sales 2013 2012 Change
Selling, general and administrative expenses as a percentage of Net sales, GAAP 35.1 % 34.3 % 80
2012 Restructuring Program (0.3 %) -
Business realignment and other cost-saving initiatives - (0.1 %)
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP 34.8 % 34.2 % 60
Other (Income) Expense, Net 2013 2012
Other (income) expense, net, GAAP $ 102 $ 15
2012 Restructuring Program (78 ) -
Charge for a French competition law matter (18 ) -
Costs related to the sale of land in Mexico (2 ) -
Business realignment and other cost-saving initiatives - (6 )
Other (income) expense, net, non-GAAP $ 4 $ 9
Operating Profit 2013 2012 % Change
Operating profit, GAAP $ 906 $ 982 (8 %)
2012 Restructuring Program 102 -
Charge for a French competition law matter 18 -
Costs related to the sale of land in Mexico 6 6
Business realignment and other cost-saving initiatives - 13
Operating profit, non-GAAP $ 1,032 $ 1,001 3 %
Basis Point
Operating Profit Margin 2013 2012 Change
Operating profit margin, GAAP 20.8 % 23.0 % (220 )
2012 Restructuring Program 2.4 % -
Charge for a French competition law matter 0.4 % -
Costs related to the sale of land in Mexico 0.1 % 0.2 %
Business realignment and other cost-saving initiatives - 0.3 %
Operating profit margin, non-GAAP 23.7 % 23.5 % 20
Net Income Attributable to Colgate-Palmolive Company 2013 2012 % Change
Net income attributable to Colgate-Palmolive Company, GAAP $ 561 $ 627 (11 %)
2012 Restructuring Program 79 -
Charge for a French competition law matter 18 -
Costs related to the sale of land in Mexico 4 5
Business realignment and other cost-saving initiatives - 9
Net income attributable to Colgate-Palmolive Company, non-GAAP $ 662 $ 641 3 %
Earnings Per Common Share, Diluted (1) (2) 2013 2012 % Change
Diluted earnings per common share, GAAP $ 0.60 $ 0.65 (8 %)
2012 Restructuring Program 0.08 -
Charge for a French competition law matter 0.02 -
Costs related to the sale of land in Mexico - 0.01
Business realignment and other cost-saving initiatives - 0.01
Diluted earnings per common share, non-GAAP $ 0.70 $ 0.67 4 %
(1) The impact of non-GAAP adjustments on the diluted earnings per share may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding.
(2) As a result of the two-for-one stock split, effective May 15, 2013, all historical per share data and number of shares were retroactively adjusted. Diluted earnings per share was computed independently for each quarter presented.
Table 9
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Six Months Ended June 30, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit 2013 2012
Gross profit, GAAP $ 5,049 $ 4,898
2012 Restructuring Program 18 -
Costs related to the sale of land in Mexico 8 13
Business realignment and other cost-saving initiatives - 4
Gross profit, non-GAAP $ 5,075 $ 4,915
Basis Point
Gross Profit Margin 2013 2012 Change
Gross profit margin, GAAP 58.3 % 57.8 % 50
2012 Restructuring Program 0.2 % -
Costs related to the sale of land in Mexico 0.1 % 0.2 %
Gross profit margin, non-GAAP 58.6 % 58.0 % 60
Selling, General and Administrative Expenses 2013 2012
Selling, general and administrative expenses, GAAP $ 3,062 $ 2,942
2012 Restructuring Program (22 ) -
Business realignment and other cost-saving initiatives - (12 )
Selling, general and administrative expenses, non-GAAP $ 3,040 $ 2,930
Basis Point
Selling, General and Administrative Expenses as a Percentage of Net Sales 2013 2012 Change
Selling, general and administrative expenses as a percentage of Net sales, GAAP 35.4 % 34.7 % 70
2012 Restructuring Program (0.3 %) -
Business realignment and other cost-saving initiatives - (0.1 %)
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP 35.1 % 34.6 % 50
Other (Income) Expense, Net 2013 2012
Other (income) expense, net, GAAP $ 339 $ 36
2012 Restructuring Program (128 ) -
Venezuela devaluation charge (172 ) -
Charge for a French competition law matter (18 ) -
Costs related to the sale of land in Mexico (3 ) -
Business realignment and other cost-saving initiatives - (2 )
Other (income) expense, net, non-GAAP $ 18 $ 34
Operating Profit 2013 2012 % Change
Operating profit, GAAP $ 1,648 $ 1,920 (14 %)
2012 Restructuring Program 168 -
Venezuela devaluation charge 172 -
Charge for a French competition law matter 18 -
Costs related to the sale of land in Mexico 11 13
Business realignment and other cost-saving initiatives - 18
Operating profit, non-GAAP $ 2,017 $ 1,951 3 %
Basis Point
Operating Profit Margin 2013 2012 Change
Operating profit margin, GAAP 19.0 % 22.7 % (370 )
2012 Restructuring Program 2.0 % -
Venezuela devaluation charge 2.0 % -
Charge for a French competition law matter 0.2 % -
Costs related to the sale of land in Mexico 0.1 % 0.1 %
Business realignment and other cost-saving initiatives - 0.2 %
Operating profit margin, non-GAAP 23.3 % 23.0 % 30
Net Income Attributable to Colgate-Palmolive Company 2013 2012 % Change
Net income attributable to Colgate-Palmolive Company, GAAP $ 1,021 $ 1,220 (16 %)
2012 Restructuring Program 131 -
Venezuela devaluation charge 111 -
Charge for a French competition law matter 18 -
Costs related to the sale of land in Mexico 7 10
Business realignment and other cost-saving initiatives - 12
Net income attributable to Colgate-Palmolive Company, non-GAAP $ 1,288 $ 1,242 4 %
Earnings Per Common Share, Diluted (1) (2) 2013 2012 % Change
Diluted earnings per common share, GAAP $ 1.08 $ 1.26 (14 %)
2012 Restructuring Program 0.14 -
Venezuela devaluation charge 0.12 -
Charge for a French competition law matter 0.02 -
Costs related to the sale of land in Mexico - 0.01
Business realignment and other cost-saving initiatives - 0.02
Diluted earnings per common share, non-GAAP $ 1.36 $ 1.29 5 %
(1) The impact of non-GAAP adjustments on the diluted earnings per share may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding.
(2) As a result of the two-for-one stock split, effective May 15, 2013, all historical per share data and number of shares were retroactively adjusted. Diluted earnings per share was computed independently for each quarter and the year-to-date period presented. As a result of the stock split, changes in shares outstanding during the year and rounding, the sum of the quarters' earnings per share may not necessarily equal the earnings per share for the year-to-date period.
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Contact:.
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Colgate-Palmolive Company
Bina Thompson, 212-310-3072
Hope Spiller, 212-310-2291
Drmicrocap
12年前
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Colgate Announces 1st Quarter 2013 Results
Strong Organic Sales Growth Worldwide
Press Release: Colgate-Palmolive Company – Thu, Apr 25, 2013 7:00 AM EDT.. .
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NEW YORK--(BUSINESS WIRE)--
Colgate-Palmolive Company (CL) today reported worldwide Net sales of $4,315 million in first quarter 2013, an increase of 2.5% versus first quarter 2012. Global unit volume grew 4.0%, pricing increased 1.5% and foreign exchange was negative 3.0%. Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 6.0%.
Net income and Diluted earnings per share in first quarter 2013 were $460 million and $0.97, respectively. Net income in first quarter 2013 included a one-time aftertax charge of $111 million ($0.23 per diluted share) related to the remeasurement of the Venezuelan balance sheet as a result of the currency devaluation on February 9, 2013. Net income in first quarter 2013 also included $55 million ($0.12 per diluted share) of aftertax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program (the “2012 Restructuring Program”) and costs associated with the sale of land in Mexico.
Net income and Diluted earnings per share in first quarter 2012 were $593 million and $1.23, respectively. As previously disclosed, Net income in first quarter 2012 included aftertax charges of $8 million ($0.01 per diluted share) resulting from the items described in Table 6.
Excluding the above noted items in both periods, Net income in first quarter 2013 was $626 million, an increase of 4% versus first quarter 2012, and Diluted earnings per share in first quarter 2013 was $1.32, an increase of 6% versus first quarter 2012.
Gross profit margin was 58.3% in first quarter 2013 versus 58.0% in the year ago quarter. Excluding the above noted items in both periods, Gross profit margin was 58.6% in first quarter 2013, an increase of 40 basis points versus the year ago quarter, as higher pricing and cost savings from the Company’s funding-the-growth initiatives more than offset higher raw and packaging material costs and the impact of the sale of higher cost inventory on hand in Venezuela prior to the devaluation.
Selling, general and administrative expenses were 35.6% of Net sales in first quarter 2013 versus 35.2% in first quarter 2012. Excluding the above noted items in both periods, Selling, general and administrative expenses increased by 40 basis points to 35.4% of Net sales in first quarter 2013, as advertising investment increased by 20 basis points and overhead expenses increased by 20 basis points primarily due to increased investment in customer development initiatives. Worldwide advertising investment on an absolute basis increased 5% versus the year ago quarter to $471 million.
Operating profit decreased 21% to $742 million in first quarter 2013 compared to $938 million in first quarter 2012. Excluding the above noted items in both periods, Operating profit increased 4% to $985 million.
Net cash provided by operations increased 17% to $777 million in the first quarter of 2013, compared to $662 million in the comparable 2012 period. The increase was driven by strong operating earnings as well as a continued tight focus on working capital, especially accounts receivable and inventory management. Free cash flow before dividends (Net cash provided by operations less Capital expenditures) exceeded 100% of Net income. Working capital as a percentage of Net sales improved to negative 0.5% versus negative 0.1% in the year ago period.
Ian Cook, Chairman, President and Chief Executive Officer, commented on the results and outlook excluding the 2013 and 2012 items noted above, “We are very pleased to begin the year with strong top and bottom line growth, building on the growth momentum we saw in 2012. Gross profit margin, operating profit margin and net income as a percent of sales all increased versus the year ago period.
“The excellent 6.0% organic sales growth was well balanced between solid unit volume gains and higher pricing worldwide. All operating divisions achieved positive organic sales growth in the quarter, led by the emerging markets where organic sales grew a robust 9.5%.
“Advertising investment increased versus year ago, both absolutely and as a percent to sales, and we continue to plan for higher levels of commercial investment in the balance of the year in support of a very full pipeline of new products worldwide.
“Colgate’s global market shares in toothpaste and manual toothbrushes are both at record highs year to date. Colgate’s share of the global toothpaste market strengthened to 45.6% year to date, up 0.1 share points versus year ago. Our global leadership in manual toothbrushes also strengthened during the quarter with Colgate’s global market share in that category reaching 33.4% year to date, up 0.4 share points versus year ago.
“Looking forward, we expect our growth momentum to continue as we progress through the year. We are pleased that our global restructuring program is on track and proceeding smoothly. We also continue to be sharply focused on our aggressive funding-the-growth programs and our strategic worldwide pricing initiatives.
“Based on this, we anticipate another year of strong organic sales growth and gross margin expansion in 2013. In light of the ongoing impact of the Venezuela currency devaluation in 2013, which we still expect to be $0.05 to $0.07 per quarter, we continue to expect diluted earnings per share to grow 5.5% to 6.5% for the year, on a dollar basis.”
At 11:00 a.m. ET today, Colgate will host a conference call to elaborate on first quarter results. To access this call as a webcast, please go to Colgate’s web site at http://www.colgatepalmolive.com.
The following are comments about divisional performance for first quarter 2013 versus the year ago period. See attached Geographic Sales Analysis and Segment Information schedules for additional information on divisional sales and operating profit.
North America (18% of Company Sales)
North America Net sales increased 5.5% in first quarter 2013. Unit volume increased 3.5% with 2.0% higher pricing and foreign exchange was even with the year ago quarter. Organic sales increased 5.5% during the quarter.
Operating profit in North America increased 22% in the first quarter of 2013 to $215 million, or 28.1% of Net sales. This increase in Operating profit was due to an increase in Gross profit, which was partially offset by an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was mainly driven by lower raw and packaging material costs and savings from the Company’s funding-the-growth initiatives. This increase in Selling, general and administrative expenses was due to higher advertising investment, which was partially offset by lower overhead costs.
In the U.S., new product launches are contributing to volume growth across categories. Market share gains year to date were seen in manual toothbrushes, powered toothbrushes, mouthwash, body washes and fabric conditioners. In toothpaste, the success of Colgate Optic White and Colgate Optic White Dual Action toothpastes helped drive market share for the Optic White brand to 5.7% year to date, up 1.3 share points versus year ago. In manual toothbrushes, Colgate’s market share reached a record 37.1% year to date, up 0.3 share points versus year ago, driven by the success of Colgate 360° Optic White, Colgate 360° Total Advanced Floss Tip bristles and Colgate Extra Clean manual toothbrushes.
Successful new products driving volume growth in the U.S. in other categories include Colgate Optic White mouthwash, Softsoap brand Acai Berry & Tropical Water and Softsoap brand Coconut Island Quench body washes, Irish Spring Deep Action Scrub bar soap, Softsoap brand Antibacterial liquid hand soap, Palmolive Lotus Blossom & Lavender and Ajax with Aloe dish liquids and Suavitel Silky Essence fabric conditioner.
Exciting new products launching in second quarter 2013 include Colgate Total Advanced Pro-Shield mouthwash, an important addition to the Colgate Total oral care regimen. The launch will be supported by an integrated marketing campaign featuring television personality Kelly Ripa as the new spokesperson for the Colgate Total brand.
Latin America (28% of Company Sales)
Latin America Net sales increased 1.0% in first quarter 2013. Unit volume increased 5.5% with 3.0% higher pricing and 7.5% negative foreign exchange. Volume gains were led by Mexico, Brazil, Venezuela and the Southern Cone region. Organic sales for Latin America increased 9.0% during the quarter.
Operating profit in Latin America decreased 11% in the first quarter of 2013 to $312 million, or 25.7% of Net sales. This decrease in Operating profit was due to a decrease in Gross profit and an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This decrease in Gross profit is due to higher costs in Venezuela primarily associated with charging Cost of sales, as required, with the historical U.S. dollar cost of inventory acquired prior to the devaluation. This increase in Selling, general and administrative expenses was primarily due to higher costs in Venezuela due to inflation.
Colgate’s strong leadership in oral care throughout Latin America continued during the quarter with year-to-date toothpaste market share gains in Brazil, Chile, Uruguay, the Dominican Republic and Puerto Rico. Strong sales of Colgate Luminous White toothpaste drove volume growth throughout the region. Colgate strengthened its leadership of the manual toothbrush market throughout the region, driven by strong sales of Colgate 360° Luminous White and Colgate Triple Action manual toothbrushes. In mouthwash, Colgate’s year-to-date market share is at a record high in the region with gains driven by Colgate Luminous White mouthwash and the relaunch of Colgate Plax mouthwash.
Products in other categories contributing to market share gains include Protex Men and Palmolive Naturals Pomegranate bar soaps, Speed Stick DNA and Lady Speed Stick Neutro deodorants, Axion dish liquid and the relaunch of Suavitel Good Bye Ironing fabric conditioner.
Europe/South Pacific (20% of Company Sales)
Europe/South Pacific Net sales in first quarter 2013 decreased 0.5%. Unit volume and pricing were even with the year ago period and foreign exchange was negative 0.5%. Volume gains in Australia, Holland and Germany more than offset volume declines in Greece and the United Kingdom. Organic sales for Europe/South Pacific increased 0.5%.
Operating profit in Europe/South Pacific increased 9% in the first quarter of 2013 to $200 million, or 23.6% of Net sales. This increase in Operating profit was due to an increase in Gross profit and a decrease in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was driven by savings from the Company’s funding-the-growth initiatives. This decrease in Selling, general and administrative expenses was driven by higher advertising investment which was more than offset by lower overhead expenses.
Colgate strengthened its oral care leadership in the Europe/South Pacific region with toothpaste share gains led by France, Italy, Netherlands, Czech Republic, Croatia and Bulgaria. Successful premium products driving share gains include Colgate Total Pro Gum Health, Colgate Total Interdental, elmex Sensitive and Colgate Max White One Fresh toothpastes. In the manual toothbrush category, Colgate 360° Max White One manual toothbrush contributed to growth throughout the region.
Recent premium innovations contributing to volume growth in other product categories include Colgate Max White One, Colgate Total Pro Gum Health and Colgate Plax Complete Care mouthwashes, Colgate ProClinical electric toothbrush, Sanex Zero% deodorant, Palmolive Ayurituel shower gels and liquid hand soaps, Ajax Pure Home liquid cleaner and Soupline Aroma Sensations fabric conditioner.
Greater Asia/Africa (22% of Company Sales)
Greater Asia/Africa Net sales and unit volume increased 8.5% and 11.0%, respectively, during first quarter 2013. Volume gains were led by India, Russia, the Greater China region, Turkey, the Philippines and South Africa. Pricing decreased 1.0% and foreign exchange was negative 1.5%. Organic sales for Greater Asia/Africa increased 10.0%.
Operating profit in Greater Asia/Africa increased 13% in the first quarter of 2013 to $248 million, or 26.0% of Net sales. This increase in Operating profit was a result of an increase in Gross profit which was partially offset by an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives, partially offset by lower pricing. This increase in Selling, general and administrative expenses was driven by higher advertising investment and increased investment in customer development initiatives.
Colgate continued its toothpaste leadership in Greater Asia, driven by market share gains in India, China, Thailand, the Philippines, Singapore and Vietnam. Successful new products including Colgate Optic White, Colgate Total Pro Gum Health, Darlie Enamel and Darlie Expert White toothpastes contributed to volume growth throughout the region.
Successful products contributing to volume growth in other categories in the region include Colgate Slim Soft and Colgate 360° Surround manual toothbrushes, Colgate Optic White and Colgate Plax Fruity Fresh mouthwashes and Protex for Men shower gel.
Hill’s Pet Nutrition (12% of Company Sales)
Hill’s Net sales decreased 1.5% during first quarter 2013. Unit volume decreased 3.0%, pricing increased 3.5% and foreign exchange was negative 2.0%. Volume declines in the U.S., Europe and Japan were partially offset by volume gains in Russia, Canada, Australia and Brazil. Hill’s organic sales increased 0.5%.
Hill’s Operating profit decreased 8% in the first quarter of 2013 to $136 million, or 25.5% of Net sales. This decrease in Operating profit was due to a decrease in Gross profit and an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This decrease in Gross profit was driven by higher raw and packaging material costs, which were partially offset by higher pricing and cost savings from the Company’s funding-the-growth initiatives. This increase in Selling, general and administrative expenses was primarily due to increased investment in customer development initiatives.
New product introductions contributing to sales in the U.S. include Hill’s Ideal Balance Canine and Feline, with natural ingredients perfectly balanced, Prescription Diet Canine and Feline Metabolic Advanced Weight Solution, Prescription Diet i/d Canine Low Fat GI Restore, specially formulated to help manage gastrointestinal disorders, and the relaunch of Science Diet Canine and Feline with upgraded meat first, 100% natural ingredients and improved package design.
New pet food products contributing to international sales include reformulated Science Plan Adult and Mature Adult Canine and Feline with improved taste, reformulated Prescription Diet j/d Canine with improved taste, Prescription Diet Canine and Feline Metabolic Advanced Weight Solution and the relaunch of Science Plan Nature’s Best with upgraded ingredients and package design.
***
About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Mennen, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. For more information about Colgate’s global business, visit the Company’s web site at http://www.colgatepalmolive.com. To learn more about Colgate Bright Smiles, Bright Futures® oral health education program, please visit http://www.colgatebsbf.com. CL-E
Substantially all market share data included in this press release is compiled from data as measured by Nielsen.
Cautionary Statement on Forward-Looking Statements
This press release and the related webcast (other than historical information) may contain forward-looking statements. Such statements may relate, for example, to sales or volume growth, organic sales growth, profit or profit margin growth, earnings growth, financial goals, the impact of currency devaluations, exchange controls, price controls and labor unrest, including in Venezuela, cost-reduction plans including the 2012 Restructuring Program, tax rates, new product introductions or commercial investment levels. These statements are made on the basis of our views and assumptions as of this time and we undertake no obligation to update these statements. We caution investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. Investors should consult the Company’s filings with the Securities and Exchange Commission (including the information set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012) for information about certain factors that could cause such differences. Copies of these filings may be obtained upon request from the Company’s Investor Relations Department or on the Company’s web site at http://www.colgatepalmolive.com.
Non-GAAP Financial Measures
The following provides information regarding the non-GAAP financial measures used in this earnings release and/or the related webcast:
To supplement Colgate’s Condensed Consolidated Income Statements presented in accordance with accounting principles generally accepted in the United States of America (GAAP), the Company has disclosed non-GAAP measures of operating results that exclude certain items. Worldwide Gross profit, Gross profit margin, Selling, general and administrative expenses, Selling, general and administrative expenses as a percentage of Net sales, Other (income) expense, net, Operating profit, Operating profit margin, Net income attributable to Colgate-Palmolive Company and Diluted earnings per common share are discussed both as reported (on a GAAP basis) and, as applicable, excluding charges resulting from the implementation of the 2012 Restructuring Program, the one-time charge resulting from the Venezuela devaluation, costs related to the sale of land in Mexico and costs associated with various business realignment and other cost-saving initiatives (non-GAAP). Management believes these non-GAAP financial measures provide investors with useful supplemental information regarding the performance of the Company’s ongoing operations. See “Non-GAAP Reconciliations” for the three months ended March 31, 2013 and 2012 included with this release for a reconciliation of these financial measures to the related GAAP measures.
This release discusses organic sales growth, which is Net sales growth excluding the impact of foreign exchange, acquisitions and divestments. Management believes this measure provides investors with useful supplemental information regarding the Company’s underlying sales trends by presenting sales growth excluding the external factor of foreign exchange as well as the impact from acquisitions and divestments. See “Geographic Sales Analysis Percentage Changes” for the three months ended March 31, 2013 vs 2012 included with this release for a comparison of organic sales growth to sales growth in accordance with GAAP.
The Company uses these financial measures internally in its budgeting process and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies.
The Company defines free cash flow before dividends as Net cash provided by operations less Capital expenditures. As management uses this measure to evaluate the Company’s ability to satisfy current and future obligations, repurchase stock, pay dividends and fund future business opportunities, the Company believes that it provides useful information to investors. Free cash flow before dividends is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. Free cash flow before dividends is not a GAAP measurement and may not be comparable to similarly titled measures reported by other companies. See “Condensed Consolidated Statements of Cash Flows” for the three months ended March 31, 2013 and 2012 for a comparison of free cash flow before dividends to Net cash provided by operations as reported in accordance with GAAP.
(See attached tables for first quarter results.)
Table 1
Colgate-Palmolive Company
Condensed Consolidated Statements of Income
For the Three Months Ended March 31, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2013
2012
Net sales
$
4,315
$
4,200
Cost of sales
1,800
1,763
Gross profit
2,515
2,437
Gross profit margin
58.3
%
58.0
%
Selling, general and administrative expenses
1,536
1,478
Other expense, net
237
21
Operating profit
742
938
Operating profit margin
17.2
%
22.3
%
Interest (income) expense, net
(3
)
10
Income before income taxes
745
928
Provision for income taxes
239
295
Effective tax rate
32.1
%
31.8
%
Net income including noncontrolling interests
506
633
Less: Net income attributable to noncontrolling interests
46
40
Net income attributable to Colgate-Palmolive Company
$
460
$
593
Earnings per common share
Basic
$
0.98
$
1.24
Diluted
$
0.97
$
1.23
Average common shares outstanding
Basic
468.3
480.1
Diluted
472.5
483.9
Table 2
Colgate-Palmolive Company
Condensed Consolidated Balance Sheets
As of March 31, 2013, December 31, 2012 and March 31, 2012
(Dollars in Millions) (Unaudited)
March 31,
December 31,
March 31,
2013
2012
2012
Cash and cash equivalents
$
932
$
884
$
1,044
Receivables, net
1,808
1,668
1,827
Inventories
1,371
1,365
1,400
Other current assets
717
639
578
Property, plant and equipment, net
3,820
3,842
3,702
Other assets, including goodwill and intangibles
4,885
4,996
4,703
Total assets
$
13,533
$
13,394
$
13,254
Total debt
$
5,357
$
5,230
$
4,967
Other current liabilities
3,829
3,432
3,735
Other non-current liabilities
2,328
2,342
2,056
Total liabilities
11,514
11,004
10,758
Total Colgate-Palmolive Company shareholders' equity
1,772
2,189
2,290
Noncontrolling interests
247
201
206
Total liabilities and shareholders' equity
$
13,533
$
13,394
$
13,254
Supplemental Balance Sheet Information
Debt less cash, cash equivalents and marketable securities*
$
4,261
$
4,230
$
3,841
Working capital % of sales
(0.5
)%
0.7
%
(0.1
)%
*
Marketable securities of $164, $116 and $82 as of March 31, 2013, December 31, 2012 and March 31, 2012, respectively, are included
in Other current assets.
Table 3
Colgate-Palmolive Company
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2013 and 2012
(Dollars in Millions) (Unaudited)
2013
2012
Operating Activities
Net income including noncontrolling interests
$
506
$
633
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations:
Depreciation and amortization
110
106
Restructuring and termination benefits, net of cash
30
(17
)
Stock-based compensation expense
32
29
Venezuela devaluation charge
172
-
Deferred income taxes
(17
)
22
Cash effects of changes in:
Receivables
(175
)
(90
)
Inventories
(15
)
(38
)
Accounts payable and other accruals
112
(35
)
Other non-current assets and liabilities
22
52
Net cash provided by operations
777
662
Investing Activities
Capital expenditures
(94
)
(60
)
Purchases of marketable securities and investments
(199
)
(51
)
Proceeds from sale of marketable securities and investments
54
32
Other
7
38
Net cash used in investing activities
(232
)
(41
)
Financing Activities
Principal payments on debt
(1,436
)
(1,013
)
Proceeds from issuance of debt
1,553
1,183
Dividends paid
(290
)
(278
)
Purchases of treasury shares
(385
)
(463
)
Proceeds from exercise of stock options and excess tax benefits
96
106
Net cash used in financing activities
(462
)
(465
)
Effect of exchange rate changes on Cash and cash equivalents
(35
)
10
Net increase in Cash and cash equivalents
48
166
Cash and cash equivalents at beginning of period
884
878
Cash and cash equivalents at end of period
$
932
$
1,044
Supplemental Cash Flow Information
Free cash flow before dividends (Net cash provided by operations less Capital expenditures)
Net cash provided by operations
$
777
$
662
Less: Capital expenditures
(94
)
(60
)
Free cash flow before dividends
$
683
$
602
Income taxes paid
$
182
$
223
Table 4
Colgate-Palmolive Company
Segment Information
For the Three Months Ended March 31, 2013 and 2012
(Dollars in Millions) (Unaudited)
Three Months Ended
March 31,
2013
2012
Net sales
Oral, Personal and Home Care
North America
$
764
$
724
Latin America
1,214
1,201
Europe/South Pacific
848
854
Greater Asia/Africa
955
879
Total Oral, Personal and Home Care
3,781
3,658
Pet Nutrition
534
542
Total Net sales
$
4,315
$
4,200
Three Months Ended
March 31,
2013
2012
Operating profit
Oral, Personal and Home Care
North America
$
215
$
177
Latin America
312
350
Europe/South Pacific
200
183
Greater Asia/Africa
248
220
Total Oral, Personal and Home Care
975
930
Pet Nutrition
136
148
Corporate(1)
(369
)
(140
)
Total Operating profit
$
742
$
938
Note:
(1)
Corporate operations include costs related to stock options and restricted stock awards, research and development costs, Corporate overhead costs, restructuring and related implementation costs and gains and losses on sales of non-core product lines and assets.
For the three months ended March 31, 2013, Corporate Operating profit (loss) includes charges of $66 associated with the 2012 Restructuring Program, a one-time $172 charge for the impact of the devaluation in Venezuela and costs of $5 related to the sale of land in Mexico.
For the three months ended March 31, 2012, Corporate Operating profit (loss) includes costs of $7 related to the sale of land in Mexico and $5 associated with various business realignment and other cost-saving initiatives.
Table 5
Colgate-Palmolive Company
Geographic Sales Analysis Percentage Changes
For the Three Months Ended March 31, 2013 vs 2012
(Unaudited)
COMPONENTS OF SALES CHANGE
Pricing
Coupons
Sales
Consumer &
Change
Organic
As Reported
Organic
Ex-Divested
Trade
Foreign
Region
As Reported
Sales Change
Volume
Volume
Volume
Incentives
Exchange
Total Company
2.5
%
6.0
%
4.0
%
4.5
%
4.5
%
1.5
%
(3.0
)%
Europe/South Pacific
(0.5
)%
0.5
%
-
0.5
%
0.5
%
-
(0.5
)%
Latin America
1.0
%
9.0
%
5.5
%
6.0
%
6.0
%
3.0
%
(7.5
)%
Greater Asia/Africa
8.5
%
10.0
%
11.0
%
11.0
%
11.0
%
(1.0
)%
(1.5
)%
Total International
3.0
%
7.0
%
5.5
%
6.0
%
6.0
%
1.0
%
(3.5
)%
North America
5.5
%
5.5
%
3.5
%
3.5
%
3.5
%
2.0
%
-
Total CP Products
3.5
%
6.5
%
5.5
%
5.5
%
5.5
%
1.0
%
(3.0
)%
Hill's
(1.5
)%
0.5
%
(3.0
)%
(3.0
)%
(3.0
)%
3.5
%
(2.0
)%
Emerging Markets (1)
4.0
%
9.5
%
7.5
%
8.0
%
8.0
%
1.5
%
(5.0
)%
Developed Markets
1.0
%
2.0
%
0.5
%
0.5
%
0.5
%
1.5
%
(1.0
)%
Notes:
(1) Emerging Markets include Latin America, Greater Asia/Africa (excluding Japan) and Central Europe.
Table 6
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Three Months Ended March 31, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit
2013
2012
Gross profit, GAAP
$
2,515
$
2,437
2012 Restructuring Program
8
-
Costs related to the sale of land in Mexico
4
7
Business realignment and other cost-saving initiatives
-
2
Gross profit, non-GAAP
$
2,527
$
2,446
Basis Point
Gross Profit Margin
2013
2012
Change
Gross profit margin, GAAP
58.3
%
58.0
%
30
2012 Restructuring Program
0.2
%
-
Costs related to the sale of land in Mexico
0.1
%
0.2
%
Business realignment and other cost-saving initiatives
-
-
Gross profit margin, non-GAAP
58.6
%
58.2
%
40
Selling, General and Administrative Expenses
2013
2012
Selling, general and administrative expenses, GAAP
$
1,536
$
1,478
2012 Restructuring Program
(8
)
-
Business realignment and other cost-saving initiatives
-
(7
)
Selling, general and administrative expenses, non-GAAP
$
1,528
$
1,471
Basis Point
Selling, General and Administrative Expenses as a Percentage of Net Sales
2013
2012
Change
Selling, general and administrative expenses as a percentage of Net sales, GAAP
35.6
%
35.2
%
40
2012 Restructuring Program
(0.2
)%
-
Business realignment and other cost-saving initiatives
-
(0.2
)%
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP
35.4
%
35.0
%
40
Other (Income) Expense, Net
2013
2012
Other (income) expense, net, GAAP
$
237
$
21
2012 Restructuring Program
(50
)
-
Venezuela devaluation charge
(172
)
-
Costs related to the sale of land in Mexico
(1
)
-
Business realignment and other cost-saving initiatives
-
4
Other (income) expense, net, non-GAAP
$
14
$
25
Operating Profit
2013
2012
% Change
Operating profit, GAAP
$
742
$
938
(21
)%
2012 Restructuring Program
66
-
Venezuela devaluation charge
172
-
Costs related to the sale of land in Mexico
5
7
Business realignment and other cost-saving initiatives
-
5
Operating profit, non-GAAP
$
985
$
950
4
%
Basis Point
Operating Profit Margin
2013
2012
Change
Operating profit margin, GAAP
17.2
%
22.3
%
(510
)
2012 Restructuring Program
1.5
%
-
Venezuela devaluation charge
4.0
%
-
Costs related to the sale of land in Mexico
0.1
%
0.2
%
Business realignment and other cost-saving initiatives
-
0.1
%
Operating profit margin, non-GAAP
22.8
%
22.6
%
20
Net Income Attributable to Colgate-Palmolive Company
2013
2012
% Change
Net income attributable to Colgate-Palmolive Company, GAAP
$
460
$
593
(22
)%
2012 Restructuring Program
52
-
Venezuela devaluation charge
111
-
Costs related to the sale of land in Mexico
3
5
Business realignment and other cost-saving initiatives
-
3
Net income attributable to Colgate-Palmolive Company, non-GAAP
$
626
$
601
4
%
Earnings Per Common Share, Diluted (1)
2013
2012
% Change
Earnings per common share, diluted, GAAP
$
0.97
$
1.23
(21
)%
2012 Restructuring Program
0.11
-
Venezuela devaluation charge
0.23
-
Costs related to the sale of land in Mexico
0.01
0.01
Business realignment and other cost-saving initiatives
-
-
Earnings per common share, diluted, non-GAAP
$
1.32
$
1.24
6
%
(1) The impact of non-GAAP adjustments on the diluted earnings per share may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding.
.
.
Contact:.
.
Colgate-Palmolive Company
Bina Thompson, 212-310-3072
or
Hope Spiller, 212-310-2291.
...
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.
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