Colgate-Palmolive lowers full-year sales outlook, Q3 earnings top estimates

Investing.com -- Colgate-Palmolive Company (NYSE: CL) reported third-quarter earnings that exceeded analyst expectations on Wednesday, with adjusted earnings per share of $0.91, topping the consensus estimate of $0.89. The consumer products giant saw its stock edge up 1% following the announcement.

Revenue for the quarter came in at $5.13 billion, in line with analyst estimates, representing a 2.0% increase from the same period last year. Organic sales growth came in at just 0.4%, including a 0.8% negative impact from the company’s strategic exit from private label pet sales.

The company maintained its leadership position in oral care, with global market share of 41.2% in toothpaste and 32.4% in manual toothbrushes year to date. Despite these strengths, Colgate-Palmolive lowered its full-year organic sales growth guidance to 1-2%, down from its previous forecast of 2-4%, citing slowing category growth in many markets.

The company’s gross profit margin decreased 190 basis points to 59.4% on a base business basis compared to the same quarter last year. Operating profit declined 2% to $1.06 billion.

By division, Europe showed the strongest net sales growth at 7.6%, while Asia Pacific experienced a 1.5% decline. The Hill’s Pet Nutrition segment, which accounts for 22% of total company sales, saw a 1.4% increase in net sales but a 1.3% decline in organic sales.

Colgate-Palmolive maintained its full-year guidance for earnings per share growth in the low single digits, while adjusting its gross profit margin expectations to be roughly in line with the year-to-date margin of 60.1%.

"As we transition to our new 2030 strategy and deploy our previously announced Strategic Growth and Productivity Program, we are well positioned to reaccelerate growth despite uncertainty in global markets," Wallace added.

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