Colgate-Palmolive Profit, Revenue Decline Amid Currency Headwinds

Colgate-Palmolive Co. on Thursday posted a decline in quarterly earnings and revenue as foreign exchange headwinds continued to take a toll on results, especially in Latin America.

The maker of its namesake toothpaste, Palmolive dishsoap and Lady Speed Stick deodorant does most of its business overseas and has been hard hit by the strong U.S. dollar, which makes products more expensive to customers paying in foreign currencies.

"As we look ahead, macroeconomic conditions and foreign exchange volatility remain challenging," Chief Executive Ian Cook said in prepared remarks. "Despite that, we anticipate another year of solid organic sales growth in 2016, driven by a full new product pipeline across all categories and geographies"

While total sales declined 7.6% to $3.76 billion in the quarter, the top line grew 5% when stripping out currency fluctuations, acquisitions, divestments and the impact of the deconsolidation of the company's Venezuelan operations.

Sales in Latin America logged a sharp 22% decline, while sales in Europe and the South Pacific fell 7.5%. Asia posted a sales decrease of 2.5%. Sales in North America climbed 1.5%.

After decades as a steady and solid performer—between 1994 and 2014, Colgate stock rose by more than 800%—the company has hit some bumps. It said in March that it would cut additional jobs as part of a restructuring program that was originally slated to end this year.

In all, the company earned $533 million, or 59 cents a share, in the quarter, down from $542 million, or 59 cents a share, a year earlier. Excluding certain items, earnings declined 5% to 63 cents a share.

Analysts surveyed by Thomson Reuters expected earnings of 63 cents a share on $3.8 billion in revenue

Late last month, the company promoted two insiders as part of a plan to line up an eventual successor to Mr. Cook, who has run the company for nine years, according to people familiar with the moves.

P. Justin Skala and Noel R. Wallace are now the front runners to succeed Mr. Cook, who turns 64 next month and is expected to step down within the next five years, the people said.

Colgate, historically, has been deliberate in its grooming of future CEOs. Mr. Cook, who has been with the company for 40 years, was picked as the likely successor to then Chief Executive Reuben Mark in 2004, three years before he would assume the role.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

April 28, 2016 08:35 ET (12:35 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.