Recent premium innovations contributing to strength in other product categories include Colgate Total Pro Gum Health and Colgate Sensitive Pro-Relief mouthwashes, Colgate 360° battery toothbrush, Sanex Zero% shower gel, Palmolive Ayurituel shower gels and liquid hand soaps inspired by ancient Indian Ayurvedic rituals and ingredients known traditionally to help restore the wellbeing of body and mind, Soupline Aroma Sensations fabric conditioner and Ajax Pure Home liquid cleaner.
Greater Asia/Africa (20% of Company Sales)
Greater Asia/Africa Net sales and unit volume increased 9.0% and 8.0%, respectively, during fourth quarter 2012. Volume gains were led by India, the Greater China region, Russia, the Philippines and South Africa. Pricing increased 2.0% and foreign exchange was negative 1.0%. Organic sales for Greater Asia/Africa increased 10.0%.
While Operating profit in Greater Asia/Africa increased 6% in the fourth quarter of 2012 to $215 million, it decreased as a percentage of Net Sales to 24.7%. This decrease in Operating profit as a percentage of Net sales was due to an increase in Selling, general and administrative expenses as a percentage of Net sales, which was partially offset by an increase in Gross profit as a percentage to Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives and higher pricing, partially offset by higher raw and packaging material costs. This increase in Selling, general and administrative expenses was driven by higher overhead expenses due to sales force expansion to support business growth and higher advertising expenses.Colgate continued its toothpaste leadership in Greater Asia, driven by market share gains in India, China, Malaysia, Singapore and Hong Kong. Successful new products including Colgate Optic White, Colgate Total Pro Gum Health, Darlie Enamel and Darlie Expert White toothpastes contributed to growth throughout the region. Successful products contributing to growth in other categories in the region include Colgate Slim Soft and Colgate 360° Surround manual toothbrushes, Colgate Optic White and Colgate Plax Fruity Fresh mouthwashes and Protex for Men shower gel.