Colgate-Palmolive Q4 Results Top Market; Sees Growth In FY24

(RTTNews) - Consumer products major Colgate-Palmolive Co. on Friday reported significantly higher profit in its fourth quarter, above market estimates. The top line also increased and beat the Street view.

Looking ahead for fiscal 2024, the company expects double-digit earnings-per-share growth on a reported basis, and mid to high-single-digit earnings-per-share growth on an adjusted basis.

Sales growth is expected at 1 percent to 4 percent from previous year's $19.46 billion. Organic sales growth is projected to be within its long-term targeted range of 3 percent to 5 percent.

In fiscal 2023, net and organic sales growth was 8.5 percent, with organic sales growth in every division and in all four of categories.

Further, the company expects gross profit margin expansion, and increased advertising investment in 2024.

Noel Wallace, Chairman, President and Chief Executive Officer, said, "The quality of our results this year and our strong growth momentum, including improved organic volume performance, add to our confidence that we are well positioned to deliver consistent, compounded earnings per share growth in 2024 and beyond."

For its fourth quarter, the company's net income attributable came in at $718 million or $0.87 per share, significantly higher than $5 million or $0.01 per share last year.

Adjusted earnings were $720 million or $0.87 per share for the period, compared to last year's $641 million or $0.77 per share.

Analysts on average had expected the company to earn $0.85 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

In the quarter, gross profit margin and base business gross profit margin both increased 400 basis points to 59.6 percent.

The company's revenue for the quarter rose 7 percent to $4.95 billion from $4.63 billion last year. The Street was looking for revenues of $4.9 billion for the quarter.

Organic sales increased 7 percent, while volume was flat.

North America, which represents 20 percent of company sales, recorded sales growth of 3.5 percent with a 0.5 percent rise in volume, led by oral care and personal care. Latin America sales climbed 18 percent driven by volume growth of 8 percent.

In Europe, sales grew 10 percent, while volume dropped 4 percent. Asia Pacific sales edged up 0.5 percent, while volume fell 4.5 percent. Africa/Eurasia sales fell 4 percent, while volume grew 7.5 percent.

In pre-market activity on the NYSE, Colgate-Palmolive shares were trading at $80.47, down 1 percent.

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