Colgate-Palmolive Q1 Beats Market; Cuts FY25 Earnings, Organic Sales View On Tariffs

Colgate-Palmolive

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(RTTNews) - Consumer products major Colgate-Palmolive Co. on Friday reported higher profit above market estimates in its first quarter with organic sales growth amid very difficult market conditions. Net sales, meanwhile declined, though were above the Street. Further, the firm trimmed its earnings and organic sales forecast for fiscal 2025 on tariff uncertainty, but raised net sales view.

In the pre-market activity on the NYSE, Colgate-Palmolive shares were gaining around 1.4 percent to trade at $94.00.

Noel Wallace, Chairman, President and Chief Executive Officer, said, "The positive organic sales growth, in a period of slowing category growth in many markets, is a testament to the strength of our brands and our commitment to executing against our strategy.... As we look ahead, uncertainty and volatility in global markets, including the impact of tariffs, remain challenging. We are confident in our strategy and will continue to execute with focus and agility to mitigate these factors and achieve our revised 2025 financial targets."

For fiscal 2025, including the estimated impact of tariffs announced and in effect as of April 24, the company now expects earnings per share and adjusted earnings per share to be up low single digits.

The company previously projected earnings per share growth in mid-single-digit percentage and adjusted earnings per share growth in low to mid-single-digit percentage.

Further, net sales are now expected to be up low single digits, including a low-single-digit negative impact from foreign exchange, while previous outlook was roughly flat net sales growth.

On an organic basis, the company now projects sales growth to be 2 percent to 4 percent, compared to previous outlook of sales growth within its long-term targeted range of 3 to 5 percent.

Gross profit margin on a reported and adjusted basis would be roughly flat as a percentage of net sales.

In its first quarter, Colgate-Palmolive's net income attributable totaled $690 million or $0.85 per share, higher than $683 million or $0.83 per share last year.

On an adjusted basis, base business earnings were $743 million or $0.91 per share for the period, compared to $713 million or $0.86 per share a year earlier.

The Wall Street analysts on average had expected the company to earn $0.86 per share. Analysts' estimates typically exclude special items.

The company's net sales for the period fell 3.1 percent to $4.91 billion from $5.07 billion last year. The Street was looking for net sales of $4.86 billion for the quarter.

Organic sales, however, increased 1.4 percent.

Sales in North America fell 3.6 percent, and the drop was 8.7 percent in Latin America, 5 percent in Asia Pacific and 1.5 percent in Africa/Eurasia. These were partly offset by a 2.5 percent increase in Europe and 1.5 percent rise in Hill's.

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