Colgate-Palmolive Company (NYSE:CL) came out swinging, topping expectations in the fourth quarter as demand held firm across core categories.
Strong execution in oral care and pet nutrition helped the company shrug off pressure in a tougher global backdrop.
Quarterly Sales
The company reported fourth-quarter adjusted earnings per share of 95 cents, beating the analyst consensus estimate of 91 cents. Quarterly sales of $5.230 billion, beating the Street view of $5.118 billion.
Net sales rose 5.8% during the period. Organic sales increased 2.2%, with a 0.9% drag from lower private-label pet volume.
Colgate maintained its global toothpaste lead with a 41.3% year-to-date share. The company also held its top spot in manual toothbrushes at 32.4% year to date.
Gross profit in the quarter under review totaled $3.146 billion, higher than $2.982 billion a year ago.
GAAP and base business gross profit margins each declined 10 basis points to 60.2%.
“Net sales and organic sales grew in every category during the quarter, led by strength in oral care and pet nutrition, excluding private label,” said CEO Noel Wallace.
Operating profit in the quarter under review lowered to $3.306 billion, compared with $4.268 billion a year ago. Operating profit margin contracted to 16.2% from 21.2% a year ago.
During the fourth quarter, the company took a non-cash, after-tax charge of $794 million to adjust the carrying values of goodwill and intangible assets related to the skin health business.
Given lower-than-expected category growth rates and weaker-than-expected performance, particularly in China, the company has lowered its outlook for the skin health business, primarily Filorga.
Colgate-Palmolive exited the quarter with cash and equivalents worth $1.288 billion.
Outlook
Colgate-Palmolive forecasts fiscal 2026 sales of $20.79 billion to $21.61 billion, compared with analysts’ estimate of $20.98 billion.
“As we begin 2026, while we expect the difficult operating environment and slower category growth to continue in the short term, we are operating from a position of strength and are confident that the changes we are making will enable us to deliver consistent, compounded earnings per share growth and drive shareholder value in the long term,” Wallace added.
CL Price Action: Colgate-Palmolive shares are trading higher by 3.67% to $88.22 at publication on Friday.
Photo: Shutterstock
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