Colgate-Palmolive Misses Quarterly Sales Estimates, Forecasts Lower Annual Sales
Summary:
Colgate-Palmolive's annual sales forecast falls short of Wall Street estimates due to weak demand for household products in North America and Latin America.
Key Points:
* Slowing organic sales growth due to price hikes deterring consumer spending on essential products
* Consumers opting for cheaper private label brands amid inflation concerns
* Increased competition and lower sales in Latin America due to economic uncertainty
* Annual sales growth projected to be flat, compared to analysts' estimates of 1.3% rise
* Net sales of $4.94 billion in Q4 miss analysts' estimate of $4.97 billion
* Overall price rise of 1.8% and volume growth of 2.5% in Q4
* Latin America sales drop 7.2%, while North America sales decline 1%
* Adjusted earnings per share of 91 cents exceed estimates of 89 cents
Company Perspective:
CEO Noel Wallace notes that the sales guidance includes the planned exit from private label pet nutrition by 2025. Colgate-Palmolive will assess and mitigate the potential impact of tariffs under President Donald Trump.
Market Reaction:
Shares of Colgate-Palmolive fall 2% in premarket trading after a 14% gain in 2024.