Colgate-Palmolive (CL) Fourth-Quarter FY2015 Results: Solid Organic Growth in a Difficult Environment

Executive Summary

• Colgate-Palmolive reported solid 5.0% organic fourth-quarter 2015 revenue growth, led by emerging markets, however sales were a shade below the consensus estimate.
• Adjusted EPS, excluding charges for an accounting change in Venezuela and a restructuring program, were $0.73, beating the consensus estimate by a penny.
• Sales grew the fastest in Latin America and at Hill’s Pet Nutrition products, and the company gained share in toothpaste and manual toothbrushes in 2015.
• Colgate-Palmolive expects continued organic growth in 2016 despite challenging macroeconomic conditions, and a low-single-digit decline in EPS, with the midpoint of the adjusted range nine cents below the consensus estimate of $2.94.