NEW YORK CITY (dpa-AFX) - Consumer products major Colgate-Palmolive Co. (CL), while reporting higher profit and revenues in its second quarter above market estimates, on Friday maintained fiscal 2025 earnings and net sales growth view. Meanwhile, organic sales growth is now expected at the low end of outlook range.
In the pre-market activity on the NYSE, Colgate-Palmolive shares were gaining around 1.3 percent to trade at $84.96.
Separately, the company announced a new three-year productivity program to drive future growth and support its 2030 strategy. The productivity program is projected to result in cumulative pre-tax charges, once all initiatives are approved and implemented, totaling between $200 and $300 million over the course of the three-year program.
It is expected that substantially all charges resulting from the productivity program will be incurred by December 31, 2028.
Looking ahead, for fiscal 2025, Colgate-Palmolive continues to expect gross profit margin to be roughly flat as a percentage of net sales, and earnings per share to be up low single digits.
On adjusted, Base Business, basis, the company still expects gross profit margin to be roughly flat and earnings per share to be up low single digits.
Further, the company continues to expect net sales to be up low single digits, now including a flat to low-single-digit negative impact from foreign exchange.
Organic sales growth is now expected to be at the low end of previous outlook of 2 percent to 4 percent, including the impact over the course of 2025 of the planned exit from private label pet sales. The outlook also reflects the estimated impact of tariffs.
In the second quarter, net income attributable to the company totaled $743 million or $0.91 per share, compared to $731 million or or $0.89 per share last year.
Adjusted earnings were $750 million or $0.92 per share for the period, compared to $753 million or $0.91 per share a year earlier.
The Wall Street analysts on average expected the company to report earnings of $0.89 per share. Analysts' estimates typically exclude special items.
The company's revenue for the period rose 1 percent to $5.11 billion from $5.06 billion last year. The Street expected revenues of $5.03 billion.
Organic sales growth was 1.8 percent.
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