Colgate-Palmolive’s (CL) net sales in North America jumped 8.0% during the third quarter driven primarily by skin care acquisitions, which contributed 6.0% to top-line growth. The segment’s organic sales also improved 2% led by a 1.5% increase in organic volumes and a 0.5% increase in pricing.
The company maintained its leadership position in the US in the toothpaste category with Colgate Optic White Stain Fighter, Tom’s of Maine toothpaste, and Colgate Optic White Stain-Less White generating healthy growth.
Colgate-Palmolive’s net sales in Latin America plunged 13.0% driven by lower volumes and adverse currency rates. The region’s volumes were led by softness in Brazil, Argentina, and Central America offset in part by improved volumes in the Mexico and Greater Caribbean regions. Organic sales fell 3.5% as improvement in pricing was more than offset by a decline in volumes. The region’s top line could remain challenged in the fourth quarter led by adverse currency rates and weakness in Brazil.
Net sales in Europe fell 0.5% as lower pricing and unfavorable currency rates more than offset the benefits from improvement in volumes. Organic sales improved 0.5% led by volumes gains in the UK, Greece, and Spain.
Net sales in the Asia-Pacific region fell 7.5% as lower volumes, primarily in China, and unfavorable exchange rates remained a drag. The company’s India region recorded strong growth, while China continued to be a drag as local competition and price hikes adversely impacted volumes. Organic sales fell 4% and are expected to remain weak owing to challenging market conditions in China.
Net sales in Africa/Eurasia fell 6.0% as adverse currency rates unfavorably affected sales by 8.5%. Volumes remained weak and fell 0.5%, reflecting declines in Saudi Arabia and Russia. However, pricing improved 3.0%. Organic sales increased 2.5% led by higher pricing.