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Colgate-Palmolive Company (NYSE:CL) reported natural gross sales elevated 7.0% year-over-year in Q2 vs. +6.2% consensus estimate, led by energy within the Latin America (+16.5%) and Africa/Euroasia (+17.0%) divisions, whereas the North America (+3.5%) and Asia Pacific (+1.0%) divisions confirmed softer development charges.
Pricing was up 7.0% throughout the corporate in the course of the quarter, whereas natural quantity was flat and FX contributed a half proportion level of development.
Colgate-Palmolive (CL) reported EPS of $0.87 vs. $0.85 consensus and $0.77 a 12 months in the past. Operating revenue was up 14% year-over-year on an as reported foundation in the course of the quarter for the bottom enterprise. Gains within the Europe (+35%) and Latin America (+26%) divisions had been partially offset with an working decline for the Africa/Euroasia (-15%) division. Operating revenue was solely up 19% for the North America division. The improve in working revenue as a proportion of gross sales was famous to be primarily attributable to value financial savings from the corporate’s funding-the-growth initiatives, decrease overhead bills and better pricing, partially offset by elevated promoting funding.
North America accounted for 20% of Colgate-Palmolive’s (CL) quarterly income tally. In the United States, Colgate’s share of the toothpaste market is 33.7% 12 months to this point and its share of the handbook toothbrush market is 41.1% 12 months to this point.
CEO outlook: “We continued to invest in the capabilities required to deliver robust growth going forward, building strength in areas like innovation, digital, data and analytics, revenue growth management and advertising. We leveraged our strong margin performance to invest behind building our brands, with a 19% increase in advertising spending in 2023, and we expect higher levels of brand investment in 2024.”
Colgate-Palmolive’s (CL) steerage was for full-year complete gross sales development of +1% to +4% and natural gross sales development to be throughout the firm’s long-term focused vary of three% to five%. On a non-GAAP foundation, the corporate expects gross revenue margin enlargement, elevated promoting funding and mid to high-single-digit earnings-per-share development.
Shares of Colgate-Palmolive (CL) fell 0.78% in premarket motion on Friday.