Colgate-Palmolive sees sales rise in Q3
Colgate-Palmolive has reported a 1% increase in sales to $4.4 billion for the third quarter of 2022, revealing growth in every division.
The company's gross profit margin decreased 220 basis points to 57.2%, whilst net cash provided by operations was $1.8 million for the first nine months of 2022.
Sales in Europe totalled 14% of company sales, driven by the UK, Poland and France. However, the region's operating profit dropped 29% to $127 million, primarily due to higher raw and packaging material costs and higher logistics costs.
Looking ahead, the company now expects full year sales growth to be in the middle of the 1% to 4% range. It also expects a decline in gross profit margin and double-digit earnings-per-share growth.
Noel Wallace, Chairman, President and CEO, said: "The consistent, strong, broad-based growth is evidence that our strategies are working. Our focus on science-led, core and premium innovation is providing value at all price points, which is particularly important in today’s difficult macroeconomic environment. Our investments in building and scaling our digital and other capabilities across the enterprise are also paying off with our revenue growth management initiatives helping to drive double-digit pricing worldwide.
“As expected, significant increases in raw and packaging material and logistics costs continued during the quarter and the negative impact from currency accelerated. Beyond revenue growth management and the significant pricing actions we are taking, we are also continuing our efforts around funding-the-growth and other productivity initiatives to help offset these headwinds.
“Looking ahead, despite the challenging macroeconomic environment, we intend to continue to execute against our strategy in order to drive value for all stakeholders.”