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Colgate-Palmolive tops sales forecast on global growth

Wall Street Journal US Business •
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Colgate-Palmolive kept its full‑year sales outlook of a 2%‑6% rise after posting a stronger‑than‑expected first‑quarter. Revenue climbed to $5.32 billion, an 8.4% jump year over year, driven by solid performance in every overseas division. North American sales slipped 1.8% as U.S. consumer sentiment stayed weak recently. The firm, known for toothpaste, deodorant and soap, sees its global brand strength paying off.

Net income fell to $646 million, or 80 cents a share, down from $690 million and 85 cents a year earlier. Adjusted earnings came in at 97 cents per share, topping the FactSet consensus of 94 cents. Analysts see the earnings dip offset by the robust international top line. Shares rose modestly after the release, reflecting relief that the top line beat estimates despite the earnings dip.

International growth helped the consumer‑goods maker beat Wall Street’s $5.22 billion sales forecast, reinforcing confidence in its overseas strategy. With North America lagging, the company may lean more on emerging markets to sustain momentum. Management reiterated its 2024 sales guidance, suggesting no immediate change to dividend policy. Investors can view the quarter as proof that diversification beyond the U.S. can cushion domestic weakness.