Colgate-Palmolive Slashes Full-Year Guidance, Q1 Earnings Beat Expectations But Revenue Falls Short
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Synopsis
The company expects net sales to rise by low single digits, including a low-single-digit negative impact from foreign exchange; during the last quarter, the firm had guided for net sales to be roughly flat.Colgate-Palmolive Co (CL) slashed its full-year 2025 guidance on Friday, driven by the impact of Trump’s tariffs.
The company expects net sales to rise by a low single digit, including a low single-digit negative impact from foreign exchange. During the last quarter, the firm had guided for net sales to be flat.
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Colgate-Palmolive anticipates organic sales growth of 2% to 4%, compared to its previous guidance of 3% to 5% growth. Gross profit margin expansion is now expected to remain flat. Earlier, the firm had projected the margin expansion to stay in the range of flat to a marginal rise.
Meanwhile, during the first quarter (Q1), Colgate-Palmolive reported a 3% decline in net sales to $4.91 billion, beating Wall Street's guidance of $4.86 billion. Earnings per share (EPS) stood at $0.85, marginally lower than an analyst estimate of $0.86.
CEO Noel Wallace acknowledged that uncertainty and volatility in global markets, including the impact of tariffs, continue to pose challenges. “We are confident in our strategy and will continue to execute with focus and agility to mitigate these factors and achieve our revised 2025 financial targets,” he said.
Wallace also stated that the firm anticipates the impact of tariffs announced since its conference call in January to have an incremental effect of approximately $200 million in 2025.
The company reported that net cash provided by operations totaled $600 million for the first three months of 2025.
Colgate-Palmolive shares have risen by over 3% in 2025 and by more than 5% in the past 12 months.
Earlier on Friday, Procter & Gamble (P&G) slashed its guidance for both sales and core earnings per share for the fiscal year. The company now expects flat annual sales, down from its prior estimate of 2% to 4% growth, and lowered its core earnings per share (EPS) forecast to a range of $6.72 to $6.82, from $6.91 to $7.05.
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