COLGATE NEW PRODUCT SALES TOTAL $1.8 BIL. WORLDWIDE IN 1993,
This article was originally published in The Rose Sheet
Executive Summary
COLGATE NEW PRODUCT SALES TOTAL $1.8 BIL. WORLDWIDE IN 1993, representing 25% of total sales. By comparison, new products sales, or sales from products launched within the past five years, was $1.5 bil., or 21% of total sales in 1992. U.S. introductions in 1993 included the Mennen Teen Spirit hair care line, Irish Spring antiperspirants, deodorants and anti-bacterial soap and Palmolive Ultra concentrated dishwasher powder. Overseas, Colgate Total toothpaste rolled out to 46 countries during the year.
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COLGATE NEW PRODUCT SALES TOTAL $1.8 BIL. WORLDWIDE IN 1993, representing 25% of total sales. By comparison, new products sales, or sales from products launched within the past five years, was $1.5 bil., or 21% of total sales in 1992. U.S. introductions in 1993 included the Mennen Teen Spirit hair care line, Irish Spring antiperspirants, deodorants and anti-bacterial soap and Palmolive Ultra concentrated dishwasher powder. Overseas, Colgate Total toothpaste rolled out to 46 countries during the year. Consolidated sales rose 1.9% in 1993 to $7.1 bil. In addition to new products, an increase in the firm's ownership stake in Colgate-India from 40% to 51% and the launch of S. C. Johnson's brands of liquid soap in Europe and the South Pacific contributed to the advance. In addition, the company said, "for the second year in a row worldwide advertising increased faster than sales, contributing to gains in Colgate's global market shares, particularly in Oral Care and Personal Care." The firm holds a 22% unit global market share for toothbrushes and a 45% share of the world toothpaste market. Worldwide sales in Colgate's Household/Personal Care segment rose 3% to $1.6 bil. in the fourth quarter. Unit volume grew 8%. Within the segment, combined growth of 17% in the Colgate- Asia/Africa division was generated in Thailand, Malaysia, Hong Kong and Australia. Successful new products in Asia include Colgate Total toothpaste, Protex anti-bacterial soap, Palmolive Optima shampoo-conditioner and Palmolive Shower Cream, the company said. Colgate-Latin America reported sales growth of 11% in the quarter, with Mexico, Brazil, Chile and Central America showing strong gains, according to the firm. Fourth quarter sales for Colgate-Europe were up 1%, boosted by new products including Colgate Total Toothpaste, Palmolive 2-in-1 Shower Gel, Ajax Compact 4-in-1 concentrated cleaner, Palmolive Sensitive Skin dishwashing liquid, and new toothbrushes. Consolidated sales in the fourth quarter increased 3.9% to $1.8 bil. Net income for the year, before accounting changes for post- retirement benefits, post-employment benefits and income taxes of $358 mil., advanced 14.9% to $548.1 mil. After the changes, net income declined 60.2% to $189.9 mil. Increased income resulted from improved profitability, a shift in product mix to the higher-margin personal and oral care product categories and improved manufacturing efficiency, the company said. Changes in existing plants include greater automation and vertical integration such as the manufacturing of its own toothpaste tubes and caps, Colgate stated. Capital expenditures for the year rose 14% to $364 mil. for expansion of production in developing countries and worldwide savings projects. Colgate is adding one new manufacturing facility in Mexico, Thailand and China to an existing site in each country. The new sites are expected to be completed in 1994, the company stated. Cost of sales for the year was $3.7 bil. and comprised 52% of total sales, roughly equal to last year, when cost of sales was 52.9% of sales. Research and development spending rose 11% to $139.9 mil. to keep up "new product momentum in the future," the company stated. |