NEW YORK CITY (dpa-AFX) - Consumer products major Colgate-Palmolive Co., while reporting weak profit in its second quarter despite higher net sales, on Friday confirmed fiscal 2026 outlook for earnings and sales growth. However, the firm lifted guidance for Base Business earnings per share as well as gross profit margin.
In pre-market activity on the NYSE, the shares were losing around 2.78 percent, trading at $89.09.
Noel Wallace, Chairman, President and Chief Executive Officer, stated, 'Strong levels of investment will continue in the back half of the year as we execute against our 2030 strategy with a focus on premium, science-led innovation and omni-channel demand generation to drive brand health and category growth... While we expect the volatile market conditions to continue in the balance of 2026, we are confident that the strength of our global portfolio and clear business strategy should enable us to deliver consistent, compounded earnings per share growth.'
Looking ahead for fiscal 2026, the company continues to expect double-digit earnings per share growth on a reported basis. However, Base Business earnings per share are now projected to grow in mid-single-digit, compared to previous view of low- to mid-single-digit growth.
Further, Colgate-Palmolive now projects gross profit margin on a reported and adjusted basis to be roughly flat, compared to previous view of a drop.
The Company still expects net sales to be up 2 percent to 6 percent, including a low-single-digit positive impact from foreign exchange. Organic sales growth is still projected to be 1 percent to 4 percent, including the impact from its exit from the private label pet food business..
For fiscal 2025, Colgate-Palmolive had posted sales of $20.382 billion.
In the second quarter, the company's net earnings attributable to the company came in at $693 million, lower than $743 million last year. Earnings per share fell 5 percent to $0.86 from $0.91 a year ago.
Base Business earnings were $797 million or $0.99 per share for the period, compared to $0.92 per share last year.
Adjusted operating income grew to $1.15 billion from last year's $1.09 billion, and adjusted operating margin improved to 21.4 percent from prior year's 21.3 percent.
The company's net sales for the period rose 4.9 percent to $5.361 billion from $5.110 billion last year.
Organic sales increased 2.4 percent, including a 0.4 percent negative impact from lower private label pet food sales
In the quarter, volume edged up 0.9 percent and organic volume was up 0.8 percent. Pricing increased 1.6 percent.
Colgate-Palmolive noted that net sales and organic sales grew in three of four categories and in four of five divisions.
Total Oral, Personal and Home Care net sales as well as Hill's Pet Nutrition net sales grew from last year.
North America sales dropped 3.0 percent, while sales increased 13.7 percent in Latin America, 3.5 percent in Europe, Middle East & Africa, and 4.9 percent in Asia Pacific. Hill's Pet Nutrition sales grew 3.4 percent.
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