Colgate-Palmolive Co.'s first-quarter 2006 profits increased 8.1% from a year earlier. The maker of Colgate toothpaste and Palmolive dishwashing liquid reported net earnings of $324.5 million, or 59 cents per share, compared with $300.1 million, or 53 cents per share a year ago.
Excluding restructuring charges, profits increased 11% to $383.4 million and gross profit margin was a record 56.3%.
"We are especially encouraged by the 110 basis point improvement in gross profit margin during the quarter, to an all-time record and the largest quarterly gross profit increase in over three years," said Reuben Mark, Colgate-Palmolive chairman and CEO. "This increase, aided by our ongoing savings programs, the benefits from restructuring, increased pricing and a continued shift toward higher margin products, allowed us to fund a double-digit increase in advertising supporting Colgate brands, while at the same time delivering a double-digit increase in earnings per share."
North American sales grew 7% and unit volume increased 6.5%, driven by new products and market-share gains in toothpaste, manual toothbrushes, bar soap and fabric conditioners. North America accounts for 22% of overall company sales.
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