Decaying sales and profits at wide-moat Colgate fail to indicate an eroding competitive edge.
Much angst followed Colgate’s tepid third-quarter results--as shares slumped 6%--which included a 0.5% organic sales decline, a 120-basis-point erosion in adjusted gross margins to 59.2%, and a 190-basis-point downtick in adjusted operating margins to 23.4%. However, we attribute this performance to a few ancillary macro factors, as opposed to signaling cracks in its wide moat.For one, the bulk of the sales shortfall stemmed from two markets, Brazil and China. In Brazil, volume pressure ensued ...
Colgate-Palmolive manufactures and markets a variety of products in the United States and around the world. The company has two product segments: Oral, Personal and Home Care; and Pet Nutrition. Oral, Personal and Home Care products include toothpaste, toothbrushes and mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin care products, dishwashing detergents, fabric conditioners, household cleaners, and other similar items. Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hill's Pet Nutrition.
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Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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