Colgate-Palmolive Company (CL) has reported a 6.94 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $570 million, or $0.64 a share in the quarter, compared with $533 million, or $0.59 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $601 million, or $0.67 a share compared with $571 million or $0.63 a share, a year ago. Revenue during the quarter was stable at $3,762 million, when compared with the previous year period. Gross margin for the quarter expanded 56 basis points over the previous year period to 60.31 percent. Total expenses were 76.48 percent of quarterly revenues, down from 76.95 percent for the same period last year. This has led to an improvement of 48 basis points in operating margin to 23.52 percent.
Operating income for the quarter was $885 million, compared with $867 million in the previous year period.
However, the adjusted operating income for the quarter stood at $931 million compared to $922 million in the prior year period. At the same time, adjusted operating margin improved 24 basis points in the quarter to 24.75 percent from 24.51 percent in the last year period.
Ian Cook, Chairman, President and Chief Executive Officer, commented on the first quarter results, "Clearly the first quarter was challenging and did not meet our organic sales growth expectations, driven mainly by softer results in North America. Net sales were even with the year ago quarter, while organic sales grew 0.5%, led by emerging markets where organic sales grew 3.0%."
Operating cash flow improves
Colgate-Palmolive Company has generated cash of $691 million from operating activities during the quarter, up 12.54 percent or $77 million, when compared with the last year period. The company has spent $158 million cash to meet investing activities during the quarter as against cash outgo of $144 million in the last year period.
The company has spent $520 million cash to carry out financing activities during the quarter as against cash outgo of $441 million in the last year period.
Cash and cash equivalents stood at $1,347 million as on Mar. 31, 2017, up 32.84 percent or $333 million from $1,014 million on Mar. 31, 2016.
Debt comes down marginally
Colgate-Palmolive Company has recorded a decline in total debt over the last one year. It stood at $6,473 million as on Mar. 31, 2017, down 1.63 percent or $107 million from $6,580 million on Mar. 31, 2016. Total debt was 52 percent of total assets as on Mar. 31, 2017, compared with 52.86 percent on Mar. 31, 2016.
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