Colgate-Palmolive’s revenue was adversely affected by the strength of the dollar, according to a report published by The Wall Street Journal.
The oral care giant saw revenue fall a greater-than-expected 5.5 percent to US$3.85 billion for the second quarter of the year, although earnings were up 4.5 percent to US$600 million.
The Latin American region was one of the worst hit, with sales down 16.5 percent, while Asia-Pacific reported a more modest drop of 7 percent thanks to a ‘quite sharp’ slowdown in China, where the prevalence of online shopping led to an inventory excess. Both Europe and the US registered slight increases in sales (0.6 percent and 2 percent respectively).
Ian Cook, Chairman, President and Chief Executive Officer, commented on the second quarter results, “As expected, foreign currency headwinds continued during the second quarter resulting in the 5.5 percent net sales decline.
“In the face of continued challenging macroeconomic conditions worldwide, we are pleased to have achieved another quarter of strong organic sales growth, with every operating division contributing. The 4.5 percent worldwide organic sales growth was led by emerging markets where organic sales grew a strong 6.5 percent, despite economic challenges in several countries.”