Colgate-Palmolive has reported a modest increase in profit and sales for the second quarter but revised its full-year forecast downward.
The consumer products giant posted net sales of US$5.11 billion, a 1 per cent increase from the same period last year. Organic sales, which strip out the effects of currency fluctuations and acquisitions, rose 1.8 per cent, despite a 0.6 percentage point drag from lower private-label pet nutrition sales.
Net income for the quarter rose to approximately $743 million, up from $731 million in the year-ago period.
“We feel we are well-positioned to deal with the year-to-date volatility in category growth and uncertainty in global markets,” said Noel Wallace, chairman, president and CEO.
“Guided by our strategic framework, including our focus on innovation and the strength of our global portfolio, our teams on the ground continue to execute with excellence and focus to achieve our 2025 financial targets.”
Regionally, Europe led the way with net sales increasing 7.8 per cent. The Africa/Eurasia region followed closely, delivering 8 per cent growth in reported sales.
Asia Pacific saw little movement, with reported sales up 0.8 per cent and flat organic growth.
Performance in North America, which makes up roughly 20 per cent of the company’s total revenue, was weaker. Net sales in the region fell 1 per cent due to softer volume and pricing. Latin America reported a 4.8 per cent decline in net sales.
In terms of product segments, Hill’s Pet Nutrition continued to be a strong performer, with sales rising 3.8 per cent to $1.16 billion. The company’s flagship oral, personal and home care division, which includes brands like Colgate, Palmolive, and Softsoap, generated $3.95 billion in sales.
Despite some bright spots, Colgate lowered its full-year guidance and now expects organic sales growth to fall at the lower end of its 2 per cent to 4 per cent forecast range, citing sustained currency headwinds and margin challenges.
