Colgate-Palmolive sales rise but miss analysts’ forecasts

Colgate-Palmolive has reported third-quarter sales and profits increases.

However, shares in the company fell 3.9%, trading at $65.95 as, despite beating analyst expectations on profits, Colgate’s sales missed Wall Street forecasts. 

For the three-month period, the US consumer goods giant reported net revenues of $3.92bn, up 2% on the comparative period in 2018. This fell slightly short of Wall Street’s forecast of $3.94bn, prompting a share sell-off.

Organic sales, excluding the impact of foreign exchange, acquisitions and divestments, increased 4.5%. 

Net income came in at $578m, or 67 US cents per share, up 11% from $523m a year ago.

Excluding charges resulting from the company’s Global Growth and Efficiency Program, as well as acquisition costs, the latest net income was $614m, or 71 cents per share, beating forecasts set at 70 cents.  

“We are pleased that our growth continued to accelerate this quarter, having achieved sequential improvement in organic sales growth for the fourth consecutive quarter,” said president and CEO Noel Wallace. “The strong 4.5% growth was again driven by both positive volume and higher pricing. 

“We are very focused on sustaining this growth momentum by continuing to innovate in our core businesses, pursue adjacent categories and expand into new markets and channels.” 

Looking ahead, the company reiterated its expectations for the full year of net sales to rise from flat to low single-digits.

Organic sales forecasts, however, were increased to between 3% and 4%, “roughly in line with year-to-date growth”.