Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
A-Brands

Colgate-Palmolive Raises Annual Organic Sales Forecast On Price Hikes

By Reuters
Share this article
Colgate-Palmolive Raises Annual Organic Sales Forecast On Price Hikes

Colgate-Palmolive raised its full-year organic sales forecast on Friday, betting on consistent price hikes and steady demand for its pet nutrition products.

The company's shares rose about 2% in premarket trading after it also beat first-quarter revenue and profit expectations.

Like many consumer product makers, Colgate-Palmolive has been raising prices to battle higher raw material, packaging and labor costs resulting from pandemic-induced supply chain disruptions and the Russia-Ukraine crisis.

Forward Expectations

It has also been bolstering its pet food business, Hill's Pet Nutrition, which comprised 22% of total sales in the reported quarter and has seen resilient demand in the United States and Europe.

The company now expects full-year organic sales growth of 4% to 6%, compared with its prior expectations of 3% to 5% range.

ADVERTISEMENT

It expects 2023 adjusted profit to grow in the mid-single-digit range, compared with its earlier forecast of low to mid-single-digit growth.

First Quarter

Peer Kimberly-Clark Corp also raised its full-year profit forecast on Tuesday, helped by consistent price hikes.

Colgate said sales in its oral care and personal care business in North America rose in the first quarter, but organic sales declined in its home-care segment due to the voluntary recall of its Fabuloso multi-purpose cleaners in February.

While that pulled down its total organic volumes by 2%, this was more than offset by a 12% increase in prices.

ADVERTISEMENT

Colgate-Palmolive's revenue rose over 8% to $4.77 billion in the quarter ended March 31, beating analysts' average estimate of $4.58 billion (€4.15 billion), according to Refinitiv data.

Its adjusted earnings per share of 73 cents also topped analysts' expectations of 70 cents.

News by Reuters, additional reporting by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.
Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.