Colgate-Palmolive lifts annual forecasts again on higher prices, steady demand
Reuters
Published Oct 27, 2023 07:37AM ET
Updated Oct 27, 2023 08:32AM ET
(Reuters) - Colgate-Palmolive (NYSE:CL) on Friday raised its annual organic sales and profit forecasts for a third time this year, betting on price hikes and steady demand for its self-care and pet nutrition products, sending its shares up 2% in premarket trading.
Global consumer goods companies have been bumping up product prices over the past year to counter spiraling costs linked to raw materials, labor and supply chain.
Price increases helped Colgate-Palmolive boost its gross profit margins by 130 basis points to 58.5% during the quarter ended Sept. 30.
The company said it raised prices by 9.5% in the reported quarter, while a mere 0.5% drop in organic volumes signaled that higher prices have not substantially hit demand.
"Our volume performance improved sequentially from the second quarter, despite continued strong pricing," the management said in prepared remarks.
Peer Kimberly-Clark (NYSE:KMB) on Tuesday also lifted its annual profit forecast for a third time, while raising the lower-end of its organic sales outlook on the back of higher product prices.
Colgate-Palmolive now expects annual organic sales to grow between 7% and 8%, compared with previous projections of 5% to 7% growth.
It expects full-year adjusted earnings per share growth to be in high-single digits, compared with the high end of mid-single digits it forecast earlier.
Organic sales for the Hill's Pet Nutrition brand, which contributed about 22% to company's sales in the quarter, rose 15%, driven by demand in the U.S. and Europe.
The company's overall quarterly sales rose 10.3% to $4.92 billion, compared with analysts' average estimate of $4.81 billion, according to LSEG data.
Excluding items, profit per share was 86 cents, compared with expectations of 80 cents.
(This story has been refiled to correct the brand name in paragraph 9)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.