Colgate Net Sales Gains $4.822Bn in Q2 with Toothpaste Global Market Share at 40.5%
- Chaileedo Press
- Jul 28, 2023
- 2 min read
Asia-Pacific accounted for 14% of the company's total net sales in the second quarter, down 4.5% year-over-year, with organic sales up 1%. Despite the sales decline, Asia-Pacific operating profit was up 3%.
Today (July 28), Colgate announced its 2023Q2 financial report. It showed that Colgate's Q2 net sales grew to $4.822 billion, up 7.5% year-over-year, while operating profit was $974 million, up 10% year-over-year.
Colgate said the Colgate brand continues to be a leader in the toothpaste segment, with a global market share of 40.5% as of today, and a market share of 30.4% in the manual toothbrush segment.
Specifically, Asia-Pacific accounted for 14% of the company's total net sales in the second quarter, down 4.5% year-over-year, with organic sales up 1%. Despite the sales decline, Asia-Pacific operating profit was up 3%, recording $169 million accounting for 25.5% of net sales. Colgate said the improvement in operating profit was due to cost savings from the company's funding-the-growth initiatives, which reduces advertising and improves pricing, but was partially offset by sharp increases in raw material and packaging costs.
(Credit: from Colgate's financial report)
The business in Latin America accounted for 24% of the company sales in the second quarter. The operating profit was up 38% to $363 million and accounted for 30.8% of net sales. Latin America led all markets in terms of profit, sales and share, with a clear growth trend.
(Credit: from Colgate financial results)
Home Care and Personal Care organic sales growth in North America was offset by lower Oral organic sales, but operating profit improved, primarily due to improved product pricing and cost savings from some of the Company's initiatives. The operating profit in Q2 in the region was $227 million, up 16%.
In addition, sales in the Europe region, Africa/Eurasia and Hills Pet Nutrition accounted for 14%, 6% and 22% of the company sales, respectively.
Noel Wallace, Chairman, President and Chief Executive Officer, Colgate, said, "We are very pleased to deliver another quarter of growth and profitability improvement. The strong performance of the quarter and first half results also reassures us that our strategy is on the right track and that we will continue to maintain momentum to achieve our 2023 financial goals and create value for our stakeholders."
Based on the financial report, Colgate expects future net sales to increase 5%-8%, with projected organic sales growth of 5%-7%.
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