Colgate Q3 2023 Earnings Report
Key Takeaways
Colgate-Palmolive reported strong Q3 2023 results with a 10.5% increase in net sales and a 16% increase in EPS. Organic sales grew by 9.0%, with volume improving sequentially. The company raised its full-year financial guidance, expecting continued growth and profitability.
Net sales increased by 10.5% and organic sales grew by 9.0%.
GAAP EPS and Base Business EPS both increased by 16% to $0.86.
GAAP Gross profit margin increased 130 basis points to 58.5%.
The Company raised its financial guidance for full year 2023.
Colgate
Colgate
Colgate Revenue by Segment
Colgate Revenue by Geographic Location
Forward Guidance
The Company now expects net sales growth to be 6% to 8%, including the benefit from our acquisitions of pet food businesses and a low-single-digit negative impact from foreign exchange. The Company increased its organic sales growth guidance to 7% to 8%.
Positive Outlook
- Net sales growth expected to be 6% to 8%.
- Organic sales growth guidance increased to 7% to 8%.
- Still expects gross profit margin expansion.
- Still expects increased advertising investment.
- Increased its earnings-per-share growth guidance to high-single digits.
Challenges Ahead
- Low-single-digit negative impact from foreign exchange.
- Significantly higher raw and packaging material costs.
- Organic sales declines in the Greater China region
- Unfavorable mix due to private label sales resulting from the previously disclosed acquisitions of pet food businesses
- Increased advertising investment
Revenue & Expenses
Visualization of income flow from segment revenue to net income