Colgate Oral Care Drives North American Growth In Third Quarter
This article was originally published in The Tan Sheet
Executive Summary
Colgate-Palmolive's U.S. oral care business achieved double-digit sales growth and market share gains on the launch of "super premium" products and promotions during the third quarter of 2007, VP Investor Relations Bina Thompson reported during an Oct. 30 analyst call
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Colgate-Palmolive's U.S. oral care business achieved double-digit sales growth and market share gains on the launch of "super premium" products and promotions during the third quarter of 2007, VP Investor Relations Bina Thompson reported during an Oct. 30 analyst call. Oral care gains drove net North American sales growth, excluding pet nutrition, up 2.9 percent to $687.7 million during the period, the firm said. The rollout of Colgate Max Fresh Burst toothpaste "continues to build incremental market share for the Max Fresh equity, now at 3.9 percent year to date," the firm said. The product debuted in the spring (1 (Also see "Colgate Reaps Benefits Of Marketing Spending, Remains Market Leader" - Pink Sheet, 30 Apr, 2007.), p. 5). Further, U.S. promotions for Colgate Total Advanced Clean toothpaste featuring actress Brooke Shields "helped drive market share for Colgate Total toothpaste to its highest quarterly share ever at 15.3 percent," the firm said. The latest campaign featuring Shields is airing now, she noted. Entitled "Day in the Life," the ad relays the message that Colgate Total "fights germs for 12 hours, day and night," Thompson said. The theme will also be used in print, Internet and in-store ads. The Tom's of Maine business was up "strong double digits" in the third quarter on marketing support and distribution growth, Colgate said. The firm projects that North American volume growth in the fourth quarter will be at third-quarter levels (around 1.5 percent) with "operating profit increasing double digits, up absolutely and as a percent of sales." In 2008 "we expect volume in this division to grow mid-single digits accompanied by solid operating profit growth," Thompson added. Colgate's net sales in the third quarter, excluding the pet nutrition business, advanced 12.2 percent on a reported basis to $3.06 billion, supported by the significant increase in worldwide ad spending. Total advertising during the quarter was up 12 percent. Third-quarter net income grew 22 percent to $420.1 million. - Eileen Francis ([email protected]) |