Colgate-Palmolive Cuts Annual Sales Forecast as Consumers Balk at Price Hikes (Connecting the Dots: Colgate-Palmolive & Soros Funding, All Networking)
Friday,
31 October 2025 10:33 AM EDT
Colgate-Palmolive cut its annual
sales forecast Friday, in a sign that rising economic uncertainty is reducing
consumer spending on higher-priced items, even in essential categories such as
oral and personal care.
The
maker of Colgate toothpaste and Palmolive soap has been raising prices in most
markets to counter the impact of U.S. tariffs, pushing shoppers towards cheaper
alternatives.
While
prices rose 2.3% during the third quarter, volumes fell 1.9%, compared to a
year ago.
"Consumers
still remain relatively weak across North America," said CEO Noel Wallace
during the post-earnings call, adding that discount seeking is up, Hispanic
traffic remains down and the U.S. household products category performance in
September was softer than expected and weaker than prior months.
The
company said it has also been taking a hit in Canada from the "Buy
Canadian" movement, along with weaker demand in other regions, including
Colombia, Central America as well as India.
Colgate
said it continues to expect an impact of about $75 million from tariff-related
costs.
The
company imports raw materials such as vitamins and amino acids and makes
toothpaste for the U.S. market in Mexico.
To
fend off stiff competition from cheaper private-label brands, Colgate has
ramped up its advertising and marketing efforts.
The
company's quarterly adjusted gross profit margin decreased 190 basis points to
59.4% due to a hit from soaring costs related to raw and packaging materials.
Peer
Procter & Gamble reported an upbeat quarter as consumers continued to pay
higher prices for its beauty and hair-care products.
Colgate
now expects annual organic sales growth to be 1% to 2%, after estimating it to
be at the low end of a 2% to 4% rise.
Shares
of the company were marginally down in morning trading.
"Given
the stock underperformance, we think investors were already bracing for a
reduction in guidance," said Andrea Teixeira, analyst with J.P.Morgan.
It
posted quarterly net sales of $5.13 billion, in line with analysts' estimates,
as per data compiled by LSEG.
Quarterly
adjusted profit of 91 cents per share was above estimates of 89 cents per
share.
Connecting the Dots:
Helene D. Gayle is a director at the Colgate-Palmolive
Company, a director at the ONE Campaign and a director
at the New America Foundation.
Michelle Obama is
an advocate for the ONE Campaign.
ONE Campaign is
a partner with the International Rescue Committee.
Foundation to Promote Open Society was a funder for
the International Rescue Committee and the New America
Foundation.
George Soros was the chairman for
the Foundation to Promote Open Society and is Jonathan
Soros’s father.
Jonathan Soros is George
Soros’s son and a director at the New America Foundation.
Helene D. Gayle is
a director at the New America Foundation, a director at the ONE
Campaign and a director at the Colgate-Palmolive Company.
Resources:
Past Research
3
Dividend Growth Stocks for Long-Term Income (Connecting the Dots: The Colgate-Palmolive Company, Jonathan Soros, The New
America Foundation, The International Rescue Committee & Soros Funding, All
Networking) (Past Research on the Colgate-Palmolive Company)
Thursday,
February 20, 2025
https://thesteadydrip.blogspot.com/2025/02/3-dividend-growth-stocks-for-long-term.html
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