Despite a decline in volume, Colgate-Palmolive reports an increase in their third-quarter sales, attributing the growth to a rise in product pricing. The company’s net sales for the quarter that ended on September 30 increased by 2% to amount to $5.1 billion. The product pricing saw a hike of 2.3% during this quarter, which countered the volume decrease of 1.5%.
The organic sales saw a slight rise of 0.4%. This included a negative impact of 0.8% from a decrease in private label pet sales. The company had earlier exited this non-strategic business.
CEO Noel Wallace highlighted that the sales growth was achieved despite the slowdown of category growth in numerous markets.
A regional analysis shows a fall in net sales in North America by 0.4% and in Asia Pacific by 1.5%. However, there was an increase of 2% in Latin America, 7.6% in Europe, and 6.8% in Africa/Eurasia. The sales of Hill’s Pet Nutrition also showed a rise of 1.4%.
On the other hand, the operating profit fell by 1% to $1.059 billion, and the attributable net income also saw a decrease from $737 million in the previous year to $735 million.
For the upcoming year, Colgate-Palmolive anticipates the net sales will remain in the low single digits. However, the company lowered its previous forecast for organic sales from 2-4% to now 1-2%.
CEO Wallace stressed on their new 2030 strategy and the implementation of their previously announced Strategic Growth and Productivity Program. He believes that the company is well-positioned to stimulate growth despite the uncertainty in global markets and worldwide category growth. Wallace considers this 2030 strategy as their roadmap to adapt and overcome the challenges and seize the opportunities in this complex operating environment.
What was the percentage increase in Colgate-Palmolive’s third-quarter sales?
The third-quarter sales of Colgate-Palmolive went up by 2%.
What caused the drop in Colgate-Palmolive’s volume?
The volume decrease of 1.5% was countered by a product pricing increment of 2.3%.
What is Colgate-Palmolive’s forecast for their net sales and organic sales?
Colgate-Palmolive expects the net sales to be in the lower single digits. However, the organic sales are forecasted to increase between 1 and 2%.
