NEW YORK — Colgate-Palmolive reported on Thursday a 9.5% increase in worldwide net sales as North America net sales slipped 3% during the second quarter.
Worldwide net sales totaled $4.2 billion in the second quarter, an increase of 9.5%, versus second quarter 2010. Organic sales (net sales excluding foreign exchange, acquisitions and divestments) grew 3.5%.
Net income rose 3% to $622 million and diluted earnings per share increased 8% to $1.26. Net income and diluted earnings per share in second quarter 2010 were $603 million and $1.17, respectively.
"We are pleased with our solid top and bottom line growth this quarter with worldwide net sales, operating profit, net income and diluted earnings per share all increasing versus [the year-ago period], despite very sharp increases in material costs, an intense competitive environment globally and challenging macroeconomic conditions, particularly in developed markets," Colgate-Palmolive president and CEO Ian Cook said.
"Colgate's global market shares in toothpaste and manual toothbrushes are both at record highs year to date," Cook added. "Colgate's share of the global toothpaste market strengthened to 44.6% year to date, up 0.4 share points versus [a] year ago. Our global leadership in manual toothbrushes also strengthened during the quarter, with Colgate's global market share in that category reaching 31.9% year to date, up 0.7 share points versus [a] year ago."
In North America, which accounts for 18% of company sales, net sales declined 3%, as organic sales declined 4% during the quarter. In the United States, new product launches — including Colgate Sensitive Multi Protection and Colgate Max Clean SmartFoam toothpastes — and the relaunch of Colgate Total toothpaste helped strengthen Colgate's leadership in toothpaste, with its share of that market reaching 36% year to date, up 0.6 share points versus year ago. Colgate's strength in manual toothbrushes also continued, the company stated, driven by Colgate 360° Surround, Colgate 360° ActiFlex, Colgate Total and Colgate Extra Clean manual toothbrushes.
Looking ahead in the United States, third-quarter launches include Colgate Optic White toothpaste and manual toothbrush.