- Colgate-Palmolive’s organic sales grew by 1.8% in the second quarter, exceeding estimates of 1.69%.
- North America saw a smaller decline in organic sales at -0.9% compared to the expected -2.14%.
- Latin America’s organic sales rose by 3.4%, although lower than estimates of 5.69%.
- Asia Pacific’s organic sales remained flat (0%), better than the anticipated -2.1%.
- Hill’s pet nutrition unit recorded a 2% rise in organic sales, slightly below the estimate of 2.01%.
- Adjusted earnings per share were 92 cents, exceeding the estimate of 90 cents and surpassing last year’s 91 cents.
- Net sales reached $5.11 billion, marking a 1% increase year-over-year and surpassing the forecast of $5.04 billion.
- Organic volume declined by 0.2%, better than the anticipated 0.47% decrease.
- Pricing increased by 2%, in line with estimates of 2.01%.
- Adjusted gross margin was reported at 60.1%, slightly lower than the previous year’s 60.8% and the estimate of 60.4%.
- The company forecasts organic sales growth at the low end of the 2% to 4% range for 2025, considering the impact of exiting private label pet sales.
- CEO Noel Wallace commended the team’s performance in achieving growth amidst challenging market conditions.
- Market analysts offer a mixed perspective with 13 buys, 9 holds, and 2 sells for Colgate-Palmolive.
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Colgate Palmolive Co on Smartkarma
Analyst coverage of Colgate-Palmolive Co on Smartkarma reveals insightful perspectives from Baptista Research analysts. In a report titled “Colgate-Palmolive: Leveraging Brand Strength & Innovation in Emerging Markets To Push For Growth!“, the analysts emphasize the company’s mixed performance in the first quarter of 2025. Despite facing challenges due to a weaker consumer market affecting volume growth, the company’s strategic preparedness in response to global economic pressures is noted.
Another report by Baptista Research, “Colgate-Palmolive: Will Its Promotional Strategies & Market Adaptation Be A Potential Game Changer?“, applauds Colgate-Palmolive’s strong financial performance in 2024. With net sales surpassing $20 billion and achieving high single-digit organic growth for the sixth consecutive year, the company’s balanced pricing and volume growth across all divisions are highlighted as key drivers of success.
A look at Colgate Palmolive Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Colgate-Palmolive Company, a global consumer products company known for its extensive range of personal care and household products, has received a mixed outlook based on Smartkarma Smart Scores. While the company scored well in Growth, Resilience, and Momentum with scores of 4 and 3 respectively, its Value and Dividend scores lagged slightly behind at 2 and 3. This indicates a positive long-term trajectory for the company, with a strong focus on expanding its product offerings and maintaining market resilience despite potential fluctuations.
Colgate-Palmolive Company’s impressive array of products, including toothpaste, shampoos, soaps, and pet nutrition items for cats and dogs, positions it as a staple in households globally. With a promising outlook highlighted by its solid Growth, Resilience, and Momentum scores, the company seems poised to continue its upward trajectory in the consumer products industry. While there may be some room for improvement in terms of Value and Dividend factors, Colgate-Palmolive Co.’s overall outlook appears optimistic for the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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