Colgate-Palmolive has reported net sales increase of 9.5% and an organic sales growth of 5%, to $4.3 billion, in the second quarter of its financial year.
The group maintained its strong leadership in both toothpaste and manual toothbrushes, holding 39.3% and 30.8% of the market share, respectively.
Commenting on the second-quarter results, chairman, president, and CEO of Colgate-Palmolive, Noel Wallace, said, "We are pleased that our strong growth momentum continued in the second quarter, even as we operated in an environment marked by significant volatility.
"Net sales increased 9.5% and organic sales grew 5.0% driven by both volume growth and higher pricing. This is our tenth consecutive quarter delivering organic sales growth either in or above our targeted range of 3% to 5%."
Commenting on the impact of COVID-19 on the business, Wallace said, "there is still much uncertainty" around the pandemic.
"In the face of these challenges, Colgate people everywhere remain committed to achieving our business goals by driving premium innovation, executing with agility and leveraging digital in all areas of our business. I am confident that our investment choices and growth strategies will help us manage through this difficult time," he added.
Colgate Quarter Two Results
Net sales in the second quarter amounted to $4.3 billion, up from $3.9 billion in the same quarter last year.
On a GAAP basis, earnings per share (EPS) grew 12% to $0.83.
The company has updated its financial guidance for full-year 2021 on the back of its performance.
Based on current spot rates, it expects net sales to be up 4% to 7% including a low-single-digit benefit from foreign exchange.
On a GAAP basis, Colgate-Palmolive now expects a decline in gross profit margin, increased advertising investment, and earnings-per-share growth at the lower end of its low to mid-single-digit range.
On a non-GAAP (Base Business) basis, the group has forecast a decline in gross profit margin, increased advertising investment, and earnings-per-share growth at the lower end of its mid to high-single-digit range.
Organic sales in the company's North America unit declined by 4.5% during the quarter, while Latin America reported organic sales growth of 8.5%. Both divisions individually accounted for 21% of the total sales during the quarter.
The European division generated 17% of the total sales, followed by Asia Pacific at 16%, and Africa/Eurasia at 6%.
Organic sales in Europe increased by 5% year-on-year, led by the United Kingdom, Germany, Poland and the Nordic region.
Hill's Pet Nutrition accounted for 19% of total sales, with a 15% growth in organic sales driven by its performance in the United States, Latin America and Europe.
In April of this year, Colgate-Palmolive and Philips entered into a long-term collaboration to introduce electric toothbrushes to consumers in Latin America.