Adjusted profit was 72 cents a share, in line with the consensus forecast. However, revenue dropped from US$4.37 billion in 3Q 2014 to US$3.99 billion, below analysts’ expectations.
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Colgate relies on worldwide markets for about 77 percent of its oral, personal and home-care sales.
The company also has been working to cut costs.
Colgate’s total sales fell 8.7 per cent to $4-billion (U.S.) in the latest quarter – the fifth straight decline, and slightly below the average analyst estimate.
Overall volumes rose 1 percent in the third quarter, their slowest rise in nearly five years. The company has decreased selling, general and administrative costs to 33.7 percent of revenue from 34.2 percent in the same period past year.
Net income in the quarter soared 31.8% to $1.25 billion or $1.11 per diluted share compared to $948 million or 81 cents per share from the same quarter previous year.
According to the company, its board has approved reinvestment of the proceeds it received from the sale of its detergent business in the south Pacific region.
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Mr. Cook added, “As we look ahead, macroeconomic conditions and foreign exchange volatility remain challenging”. Despite this, however it expects another year of solid sales growth with a new product in the pipeline. Based on current spot rates, we now plan for full year gross profit margin to be even with the year ago level, and expect a low to mid-single-digit earnings per share decline on a dollar basis, excluding charges related to the 2012 Restructuring Program. “This earnings per share decline continues to reflect a double-digit increase on a currency-neutral basis”. Furthermore, the stock last traded at $66.35, down 4.16% as of October 30.
