Colgate-Palmolive reaffirms annual sales forecast on weak North America demand

July 31 (Reuters) - Colgate-Palmolive on ‌Friday reaffirmed ​its ​annual sales forecast even after posting a quarterly rise as the toothpaste maker continues to grapple with ‌muted demand in North America, sending its shares down ⁠2.5%.

Higher food and fuel prices tied to the Middle East conflict have ‌hit lower-income shoppers hard, ‌making it harder for U.S. consumer goods companies to meet demand across both budget and premium segments.

• The company's ​North America organic sales fell 3% in the quarter, driven by a 3.9% drop in volumes, as slower category ⁠growth, market share losses, increased competition and inventory reductions at key retailers weighed on ​sales.

• It, however, continues to expect annual net sales to grow 2% to 6%, and raised the ​base of its 2026 adjusted ‌earnings forecast to mid-single-digit growth, up from its prior low- to mid-single-digit forecast.

• Colgate, however, warned ⁠additional headwinds relative to the forecast, as new 10% and 12.5% tariffs imposed by the Trump administration are expected to more than ⁠offset the benefit from tariff refunds received in the second quarter.

• Rival ​Procter & Gamble on Tuesday forecast slower revenue growth in fiscal 2027 after quarterly sales missed estimates and margins fell under a "very challenging geopolitical and ‌economic environment".

• Colgate-Palmolive posted a 4.9% rise in net sales to $5.36 billion for the three ‌months ended June 30, in line with analysts' estimates, according to ⁠data compiled by LSEG.

• ‌Adjusted earnings per share ​of 99 cents surpassed analysts' estimate of 95 cents.

(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Vijay ‌Kishore)

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