Colgate-Palmolive posts 5% rise in Q1 net sales

Global consumer products firm Colgate-Palmolive said it registered net sales of $4,200m in first quarter 2012, an increase of 5% from $ 3,994m in the same period of 2011.

The acquisition of Sanex contributed 1.5% to sales and volume growth, while organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew by 6.5%.

Net income for the first quarter of 2012 registered an increase of 4% to $601m as against $576m in the first quarter of 2011, while diluted earnings per share rose 7% to $1.24, up from $1.16 in the corresponding quarter of the last year.

The operating profit increased by 4% to $950m in the first quarter of 2012 as against $915m in the first quarter of 2011.

Colgate-Palmolive chairman, president and chief executive officer Ian Cook said the company was pleased to begin the year with strong top and bottom line growth, building on the growth momentum witnessed in 2011.

"The robust growth was led by the emerging markets where organic sales grew 11.5% in the quarter, and we are encouraged by positive organic sales growth in the developed markets as well," said Cook.

According to Cook, the company’s global leadership in manual toothbrushes strengthened during the quarter with its global market share in that category reaching 32.7% year to date, up 0.6 share points over previous year.

The company plans aggressive funding for growth initiatives in future, which it expects would achieve gross margin expansion in 2012, and allow for advertising support behind a full pipeline of new products planned for launch in the balance of the year, stated Cook.