Colgate-Palmolive shares rise as Q2 profit, revenue top estimates

Published 01/08/2025, 12:14
© Reuters.

Investing.com -- Colgate-Palmolive Company reported better-than-expected second quarter results on Friday, with shares rising 1.4% following the announcement as both earnings and revenue surpassed analyst expectations.

The consumer products giant posted adjusted earnings per share of $0.92, exceeding the consensus estimate of $0.89, while revenue reached $5.11 billion, topping the $5.03 billion analysts had projected. Total (EPA:TTEF) sales increased 1.0% from the year-ago period, with organic sales growth of 1.8%, despite a 0.6% negative impact from lower private label pet sales.

"I am pleased that Colgate-Palmolive (NYSE:CL) people achieved another quarter of net sales, organic sales and earnings per share growth in the face of continued difficult market conditions worldwide," said Noel Wallace, Chairman, President and Chief Executive Officer. "Organic sales growth improved sequentially versus the first quarter despite an even greater negative impact from lower private label pet sales."

The company maintained its leadership position in oral care, with global market share of 41.1% in toothpaste and 32.4% in manual toothbrushes year to date. However, gross profit margin decreased 70 basis points to 60.1% on a base business basis.

By region, Africa/Eurasia led organic sales growth at 7.7%, while Latin America grew 3.4%. The Hill’s Pet Nutrition segment, which accounts for 23% of total company sales, saw organic sales growth of 2.0%.

Looking ahead, Colgate-Palmolive updated its full-year 2025 guidance, now expecting organic sales growth to be at the low end of its previously forecasted 2% to 4% range. The company still anticipates net sales to increase by low single digits and earnings per share to grow at a low single-digit rate.

 

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