Colgate sees strong Q3 growth as toothpaste, manual toothbrush market shares rise
NEW YORK — Colgate-Palmolive announced on Thursday that it experienced a boost in third-quarter sales and net income as its global market shares in toothpaste and manual toothbrushes both hit record highs year to date.
Worldwide net sales totaled $4.38 billion, up 11% compared with the year-ago period. Organic sales rose 5%.
Net income during the quarter rose 4% to $643 million, or $1.31 per diluted share, compared with $619 million, or $1.21 per diluted share, in the year-ago period. Excluding certain items, such as the after tax gain from the sale of its laundry detergent brands in Colombia, net income was $641 million, an increase of 4% versus third quarter 2010.
In North America, which accounts for 18% of company sales, sales rose 3% as organic sales rose 2.5% during the quarter. Operating profit in North America decreased 5% in the quarter to $213 million, or 27.4% of net sales.
In the United States, new product launches, including Colgate Optic White and Colgate Sensitive Pro-Relief toothpastes and the relaunch of Colgate Total toothpaste, are strengthening the company’s leadership in toothpaste, with its share of that market reaching 35.8% year to date, up 0.5 share points versus year ago. Colgate noted that its strength in manual toothbrushes also continued, driven by Colgate 360 Optic White, Colgate 360 Sensitive Pro-Relief and Colgate 360 Surround manual toothbrushes.
“Colgate’s global market share in toothpaste and manual toothbrushes are both at record highs year to date. Colgate’s share of the global toothpaste market strengthened to 44.4% year to date, up 0.3 share points versus year ago,” stated Ian Cook, chairman, president and CEO. “Our global leadership in manual toothbrushes also strengthened during the quarter with Colgate’s global market share in that category reaching 31.8% year to date, up 0.5 share points versus year ago.”
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Revlon color cosmetics, ColorSilk hair color help fuel Revlon’s Q3 net sales
NEW YORK — Revlon announced on Thursday an upswing in third-quarter net sales due in part to higher sales of Revlon color cosmetics and Revlon ColorSilk hair color.
Net sales in the quarter totaled $337.2 million, up 5.7%, compared with $319 million in the year-ago period. Excluding favorable foreign currency fluctuations, net sales increased 3.6%. The beauty company noted that the increase was primarily driven by the inclusion of the net sales of Sinful Colors and higher sales of Revlon color cosmetics and Revlon ColorSilk hair color, partially offset by lower net sales in Venezuela due to the June 2011 fire at the company’s local facility.
In the United States, net sales totaled $184.7 million, up 10.8% compared with $166.7 million in the year-ago period.
Including a provision for income taxes of $22.1 million, net income during the quarter was $0.1 million, or nil per diluted share, compared with net income of $12.5 million, or 24 cents per diluted share, in the year-ago period. Last year, the quarter benefited from incomes taxes of $0.6 million.
“In the third quarter, we continued to executive our strategy as we grew net sales by 3.6%, maintained competitive operating income margins, and generated positive free cash flow,” stated Alan Ennis, president and CEO. “From a marketplace perspective, our continued emphasis on innovation, effective brand communication and strong in-store executive positively impacted our performance. During the quarter, two of Hollywood’s most sough-after actresses, Emma Stone and Olivia Wilde, joined us as global brand ambassadors for our Revlon brand.”
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CVS Caremark’s Brennan outlines employer healthcare options for 2014 to National Business Group on Health
BOSTON — If employers want to best manage the health and productivity of their employees, they need to continue company-sponsored health plans — that was a key message that Troyen Brennan, EVP and chief medical officer of CVS Caremark, had for attendees at the National Business Group on Health’s annual meeting on Thursday.
The message comes in light of the fact that employers face a fundamental decision concerning employee healthcare benefits when health reform-required insurance exchanges take center stage in 2014: Should their companies continue employer-sponsored insurance plans or should they move employees to programs offered through public exchanges?
"The decision you make regarding how to manage your employees’ health care moving forward is important for your employees and your business," Brennan said. "Do you stay in the driver’s seat and proactively manage the health and productivity of your workforce, or do you climb into the back seat and take your chances?"
Brennan, a former professor of medicine, law and public health at Harvard University and who formerly served as president and CEO of Brigham and Women’s Physician Organization and chief medical officer of Aetna before joining CVS Caremark, brings extensive health system experience to the NBGH address.
He reviewed projections from six different analysts on the impact the recently passed Affordable Care Act will have on the healthcare market. That review included forecasts from the Congressional Budget Office, Rand Corp., Urban Institute, Goldman Sachs, the Lewin Group, Deutsche Bank and one developed for CVS Caremark. While all the independent projections forecasted the nation’s uninsured population will signficantly drop as a result of the healthcare-reform law, they were not conclusive as to the future of employee-sponsored health plans. Several projections forecasted market shrinkage of employee-sponsored health coverage, while others show slight growth.
The heart of the presentation was Brennan’s review of research looking at the successes and shortcomings of health-and-wellness programs in the workplace, and the impact those programs have on medical costs. Brennan said 25 years of peer-reviewed studies show inconsistent results. For example, recent research into healthcare savings resulting from aggressive smoking cessation and weight-loss programs showed employers realizing significant medical cost savings. One study looking at smoking cessation programs projected 10-year savings in excess of $7 billion. However, Brennan said other studies found less dramatic, sometimes mixed results when it comes to medical cost savings.
"I wish the literature was conclusive, but it is not," Brennan said. "What we know is that there are actions and programs that have had a direct impact on employee heath and productivity. It seems clear those of us in the healthcare industry have to be creative and diligent in developing and administering these programs, because absenteeism and productivity go to the bottom line," Brennan said.
"We found successful programs are run by companies where the leadership fully supports developing a healthy culture. The research shows employers need to use all the tools at their disposal — Web, telephone, incentives and face-to-face counseling — to encourage healthy individual behaviors. By aggressively managing employee benefits, we can achieve a healthy and productive workforce and lower medical costs," Brennan concluded.
Five years ago, CVS demonstrated its national leadership in healthcare through the acquisition of MinuteClinic and later Caremark. In light of Dr. Brennan's clinical leadership at Brigham and his thoughtful presentation to the NBGH, it has been surprising that CVS has not combined those innovations, brought its clinics and managed care expertise to the employer work site and connected both electronically to national medical centers of excellence, as Walgreens, Humana and others have been doing in the meantime to catch up and take the lead in moving toward 2014. Ron Hammerle Health Resources, Ltd. Tampa