Colgate-Palmolive ( NYSE: CL ) posted a mixed earnings result on Friday amid foreign currency and inflation impacts on the business.
The New York-based manufacturer of toothpaste, deodorant, soap, and more notched $0.74 in earnings per share and $4.46B in sales. Analysts had expected $0.73 and $4.47B, respectively. Gross margin decreased 220 basis points from the prior year quarter to 57.2%.
“Our focus on science-led, core and premium innovation is providing value at all price points, which is particularly important in today’s difficult macroeconomic environment,” CEO Noel Wallace. “As expected, significant increases in raw and packaging material and logistics costs continued during the quarter and the negative impact from currency accelerated. Beyond revenue growth management and the significant pricing actions we are taking, we are also continuing our efforts around funding-the-growth and other productivity initiatives to help offset these headwinds.
Moving forward, management raised its organic sales growth guidance for the year from a range of 5% to 7% to a range of 6% to 7%. However, a decline in gross profit margin and a 7% to 8% earnings-per-share decline due to foreign exchange and inflation impacts is anticipated.
Read more on activists angling for a separation of Colgate’s pet business .
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Colgate-Palmolive reports mixed Q3 result, raises sales forecasts