Articles for Colgate-Palmolive

Colgate-Palmolive Earnings: Watching Margins on Volume Growth

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Thursday, January 19th, 2012 by

Colgate-Palmolive (NYSE:CL), the market leader in oral care, will soon announce its annual earnings. Last quarter, it improved its sales volume with 5% growth after rather slower first two quarters of fiscal 2011. This volume growth was sustained, however, through subdued pricing unlike previously planned, which led to significant pressure on the gross margins owing to the high input commodities inflation last year. Colgate competes with other leading personal care companies such as Procter & Gamble (NYSE:PG), Unilever (NYSE:UL) and Kimberly-Clark (NYSE:KMB).

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Colgate Update: Announces Dividend, Fights Margin Pressures

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Friday, January 13th, 2012 by

Colgate-Palmolive (NYSE:CL), the global market leader in oral care, declared quarterly cash dividends of $.58 per common share, payable on February 15, 2012, to shareholders of record on January 24, 2012. The company is also due to announce its annual earnings later this month. Last quarter, the company maintained its lead in oral care with a healthy sales volume growth, helped by Sanex acquisition in Europe. But margins stayed under significant pressure due to high cost environment. Colgate competes with other leading personal care companies such as Procter & Gamble (NYSE:PG), Unilever (NYSE:UL) and Kimberly-Clark (NYSE:KMB).

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Colgate-Palmolive Reaches $89 Fair Value on Oral Care Market Share

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Thursday, November 17th, 2011 by

Colgate-Palmolive (NYSE:CL), the world leader in oral care, improved its 3Q sales volume with 5% growth compared to just 2% growth over the first two quarters of fiscal 2011. Competitive activity subdued pricing efforts as previously planned and Colgate-Palmolive kept prices stable to strengthen market share despite high cost pressures that significantly brought down gross margins. Colgate competes with other leading personal care companies such as Procter & Gamble (NYSE:PG), Unilever (NYSE:UL) and Kimberly-Clark (NYSE:KMB).

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Colgate-Palmolive Earnings: Volume Growth a Concern

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Wednesday, July 27th, 2011 by

Colgate-Palmolive (NYSE:CL), the world leader in oral care, is expected to come out with Q2 earnings on July 28th. We’re on the watch for how volumes have fared in the last quarter. We expressed our concerns in the past regarding Colgate’s volume-driven growth strategy amid rising costs in our Q1, which showed low volume growth despite higher advertising and promotional spending. See Colgate Volumes Disappoint, Concern On Pricing Persist. Colgate competes with other leading personal care companies such as Procter & Gamble (NYSE:PG), Unilever (NYSE:UL) and Kimberly-Clark (NYSE:KMB).

We value Colgate-Palmolive with a $85.80 Trefis price estimate of its stock, which is roughly in line to its current market price.

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Why Colgate and Beiersdorf Deal Would Not Make Sense

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Wednesday, May 25th, 2011 by

Recently an analyst at Weeden & Co. published that Colgate-Palmolive (NYSE:CL) should buy Beiersdorf (ETR:BEI). Beiersdorf is a world leading skincare company with the biggest skincare brand worldwide in Nivea. This story was circulated by various media outlets, and we believe that a potential deal wouldn’t make sense given that Beiersdorf’s brand positioning and distribution needs would not fit with Colgate’s current business. Colgate-Palmolive competes with other leading personal care players such as Procter & Gamble (NYSE:PG) and Unilever (NYSE:UL).

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Colgate Volumes Disappoint, Concerns on Pricing Persist

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Thursday, May 5th, 2011 by

Colgate-Palmolive (NYSE:CL), the world leader in oral care, released Q1 2011 Earnings on April 28th. While we had expressed our concerns with regards to Colgate’s operating margins, an item discussed in Colgate-Palmolive Earnings Preview-What We’re Watching, what came as a bigger disappointment was the low growth in volumes despite heightened promotional activity. While many leading consumer goods players like Procter & Gamble (NYSE:PG), Unilever (NYSE:UL) and Kimberly-Clark (NYSE:KMB) are raising prices to counter the rising commodity prices, we expect that Colgate-Palmolive might hold prices stable vs. competitors in an effort to drive volumes. If the volumes do not come, higher advertising spend might be warranted to drive consumer demand, which will eat away at profits and ultimately the stock price.

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Colgate-Palmolive Earnings Preview – What We’re Watching

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Friday, April 22nd, 2011 by

Colgate-Palmolive (NYSE:CL), the world leader in oral care, is expected to release Q1 2011 earnings on April 28. Here we highlight two key trends that investors should keep an eye on – how margins have trended over the past quarter and the outlook for market share. Colgate competes with other leading personal care companies such as Procter & Gamble (NYSE:PG), Unilever (NYSE:UL) and Kimberly-Clark (NYSE:KMB). We value Colgate-Palmolive stock with a $88.80 price estimate, a roughly 10% premium to market price.

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Should Colgate-Palmolive Focus on Volume?

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Monday, April 18th, 2011 by

Colgate-Palmolive (NYSE:CL) managed to grow sales slightly 1.5% last year to $15.5 billion on a 3% increase in volumes and a negative FX impact of 1.5% Colgate’s Oral Care, Personal and Home Care product segments grew volumes by 4% at flat pricing.While other leading consumer names like Procter & Gamble (NYSE:PG) and Unilever (NYSE:UL) withdrew promotional pricing and actually raised prices on certain items due to rising commodity prices, Colgate decided to stand pat on pricing in an effort to drive volumes in 2010, a trend that is likely to continue in the future. Here we explore, how reasonable it is for Colgate-Palmolive to embark on a volume-driven growth strategy.

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Unilever Sells Sanex to Colgate to Shed Weight Post Sara Lee Deal

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Monday, March 28th, 2011 by

On March 23, 2011, Colgate-Palmolive (NYSE:CL) agreed to buy Unilever’s (NYSE:UL) Sanex brand of personal care products for $954 million. The deal also includes Colgate selling its laundry detergent business in Colombia to Unilever for $215 million. As of now, both transactions are subject to regulatory approval. These two companies compete with consumer Proctor & Gamble (NYSE:PG), Avon (NYSE:AVP) and Kimberly-Clark (NYSE:KMB).

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Is Colgate a Buffett Type Stock?

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Wednesday, March 23rd, 2011 by

Earlier this month, Colgate-Palmolive’s (NYSE:CL) name was volunteered by prominent fund managers Whitney Tilson and Douglas Kass as a potential target for Warren Buffett’s elephant gun. Instead the Oracle chose a $9.7 billion deal for Lubrizol (NYSE:LZ), a leading global supplier of additives to transportation and industrial lubricants. Here we explore what makes Colgate compelling for value hunters and compare it to competing consumer stocks like Unilever Group (NYSE:UL), Revlon (NYSE:UL) and L’Oreal (PINK:LRLCY).

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