Colgate-Palmolive Co. reported slightly higher third-quarter sales on Friday, as increased pricing helped offset a drop in product volumes.
The New York-based consumer products company, which makes Colgate toothpaste, Ajax cleaners, and Softsoap, posted earnings that narrowly beat Wall Street estimates amid a challenging operating environment.
Earnings beat analysts’ expectations
For the quarter ended September, Colgate-Palmolive reported a profit of $735 million, or 91 cents per share, compared with $737 million, or 90 cents per share, in the same period last year.
Excluding certain one-time items, adjusted earnings remained 91 cents per share, above analysts’ consensus forecast of 89 cents, according to data from FactSet.
Net sales rose 1.9% to $5.13 billion, in line with Wall Street projections.
On an organic basis, which excludes currency fluctuations and acquisitions, sales increased 0.4%.
The company said price increases of 2.3% helped offset a 1.5% decline in volumes.
Despite global economic headwinds and slower category growth in several key markets, Chief Executive Officer Noel Wallace said he was encouraged by the top-line results.
“We are pleased with our performance given the continued challenges in category growth across many markets,” Wallace said, adding that lower private-label pet sales weighed on the quarter after Colgate exited that non-strategic business.
Guidance maintained amid slower growth outlook
Colgate reaffirmed its full-year outlook, saying it expects net sales to rise in the low-single digits for 2025.
However, the company slightly adjusted its forecast for organic sales growth, now projecting an increase of 1% to 2%, compared with its previous expectation of growth at the low end of a 2% to 4% range.
The company’s management noted that it continues to face pressures from inflation, currency volatility, and uneven consumer demand globally.
Nevertheless, demand in Latin America remained resilient, helping to lift overall results above Wall Street expectations.
Shares of Colgate-Palmolive slipped about 1% in premarket trading on Friday following the release of the results.
The stock has fallen roughly 15% year-to-date through Thursday’s close, reflecting broader investor caution toward consumer staples amid concerns about pricing power and slowing volumes.
Focus on strategic productivity and 2030 growth plan
Looking ahead, Colgate-Palmolive said it is pushing ahead with its new three-year Strategic Growth and Productivity Program, aimed at improving efficiency and profitability.
The initiative, announced last quarter, focuses on better aligning the company’s organizational structure, optimizing its global supply chain, and reducing overhead costs.
“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 and lower worldwide category growth,” CEO Wallace said.
Colgate joins other major consumer goods firms such as Kimberly-Clark Corp., which also reported better-than-expected quarterly results, suggesting that household product demand remains relatively stable despite economic uncertainty.
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