Earnings, on an adjusted basis, fell 6% to 72 cents per share, in line with the street estimates.
Colgate stock gained 1% following the announcement of the results. CL shares have gained 22% so far this year.
READ: Alphabet reverses ad revenue deceleration trend in Q2, stock rises
ADVERTISEMENT
In North America, despite revenues increasing 2.5% year-over-year,
operating profits were down 4%. This was primarily due to higher raw and
packaging material costs, partially offset by cost savings from the company’s
funding-the-growth initiatives.
CEO Noel Wallace said, “Colgate’s leadership of the global toothpaste market continued during the quarter with our global market share at 41.4% year to date. Our global leadership in manual toothbrushes also continued with Colgate’s global market share in that category at 31.7% year to date.”
Outlook
The
company continues to expect 2019 net sales to be flat to up low-single-digits,
with organic sales up between 2% and 4%.
Excluding certain one-time costs, Colgate continue to plan for a year of
gross margin expansion, increased advertising investment and a mid-single-digit
decline in earnings per share.