Colgate-Palmolive Company CL shares are trading lower after the consumer giant reported a fourth-quarter sales decline of 0.12% year-on-year to $4.94 billion, missing the analyst consensus estimate of $4.98 billion.
Organic sales increased by 4.3%. Total Oral, Personal, and Home Care net sales decreased by 0.8% to $3.80 billion. Adjusted EPS of $0.91 beat the consensus estimate of $0.89.
Gross profit was $2.98 billion, while the margin expanded 70 basis points to 60.3%. Selling, general and administrative expenses rose 5.1% to $1.89 billion.
Operating margin contracted 20 basis points to 21.5%, and operating income for the quarter decreased 0.75% to $1.06 billion.
The company held $1.09 billion in cash and equivalents as of December-end. Operating cash flow for the twelve months totaled $4.1 billion.
“This was our sixth consecutive year with organic sales growth at or above our 3% to 5% targeted range. The combination of strong sales growth and operating leverage drove strong bottom-line performance as well, with net income and earnings per share both increasing double digits versus 2023,” said Chairman, President, and CEO Noel Wallace.
Outlook: Colgate expects FY25 net sales to be roughly flat, including a mid-single-digit negative impact from foreign exchange.
The company expects organic sales growth to be within its long-term targeted range of 3% to 5%, including the impact of the planned exit from private label pet nutrition in 2025.
On a non-GAAP (Base Business) basis, the company expects gross profit margin expansion with advertising investment flat to up slightly on both a dollar basis and as a percent to sales and low to mid-single-digit earnings-per-share growth.
Price Action: CL shares are trading lower by 2.958% at $88.21 in premarket at the last check Friday.
Photo via Shutterstock.
Overview Rating:
Speculative
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
