1Q25 Revenue: $4.91B, -3.1% YoY, beat estimates by $50M
1Q25 Non-GAAP EPS: $0.91, beat estimates by $0.05
FY25 Guidance: Expect low-single-digits percentage growth for annual sales, compared with its prior expectations of flat sales. Annual organic sales growth between 2% and 4%, compared with its prior forecast of 3% to 5% increase. Tariffs impacts are expected to increase the company’s cost of goods sold by about $200M.
Comment: Colgate-Palmolive reported stronger-than-expected first-quarter results, with adjusted earnings of US$0.91 per share, beating estimates of US$0.86 and net sales of US$4.91bn, above forecasts of US$4.87bn. Gross profit margin improved by 80 basis points to 60.8% in the first quarter. Total organic sales rose 1.4%, supported by moderate price hikes of 1.5% and increased advertising investment. Despite facing about US$200mn in additional costs from new tariffs, Colgate now expects its full-year organic sales growth forecast to be between 2% and 4%, slightly narrowing from its previous 3% to 5% range. While Colgate continues to face challenges from global market volatility and higher tariffs, its proactive pricing, alternative sourcing, formula simplification, and production shifts are expected to help protect margins and sustain modest growth. The company’s positive sales outlook alongside continued resilience in consumer demand for oral and personal care products, position Colgate to deliver stable results through 2025, although rising costs and ongoing trade tensions may pressure profitability. 2Q25recommended trading range: $90 to $100. Neutral Outlook.
