Net sales declined by 3% to $3.88 billion, while organic sales, which excluded the impact of foreign exchange, acquisitions, and divestments, increased by 3%. Global unit volume rose 1%, pricing increased by 2% and foreign exchange was negative 6%.
Looking ahead into the full year 2019, Colgate continues to expect net sales to be flat to up low-single-digits, with organic sales growth of 2% to 4%. On a GAAP basis, based on current spot rates, the company still expects to see gross margin expansion and a low-single-digit decline in EPS. Adjusted EPS is still expected to decline in the mid-single-digit range.
For the first quarter, net sales from North America increased by 3% with a 2% rise in unit volume, a 1.5% increase in pricing and a negative 0.5% in foreign exchange. Latin America sales declined by 4.5% as the negative 10.5% in foreign exchange overshadowed a 2.5% rise in unit volume and a 3.5% increase in pricing.
Europe sales fell by 7% as the negative 7.5% in foreign exchange and a 1% decline in pricing outrun the 1.5% rise in unit volume. Asia Pacific sales dropped by 8% with a 2.5% decline in unit volume and a negative 5.5% in foreign exchange outrun the flat pricing. Africa/Eurasia sales decreased 6% as a 13% negative foreign exchange overshadowed the 7% rise in pricing and a flat unit volume.
Also read: Johnson & Johnson Q1 earnings results
In the US, Colgate maintained leadership in the toothpaste category during the quarter with its market share at 34.8% year to date. Successful products include Colgate Total, Colgate Optic White Stain Fighter, Colgate Optic White Stain-Less White and Tom’s of Maine toothpaste. In manual toothbrushes, Colgate maintained its brand market leadership in the US with its market share in that category at 41.6% year to date, supported by the success of Colgate Extra Clean and Colgate Gum Health manual toothbrushes.
Hill’s Pet Nutrition sales rose by 3% as volume gains in the US and Western Europe was partially offset by volume declines in South Africa and Russia. Unit volume in Hill’s Pet Nutrition increased 2.0%, pricing increased 4.0% and foreign exchange was negative 3.0%.
Shares of Colgate-Palmolive ended Thursday’s regular session down 0.25% at $68.69 on the NYSE. The stock has risen over 3% in the past year and over 11% in the past three months.