Colgate-Palmolive has released its financial results for the first quarter of 2025, demonstrating mixed results including a sales decline but growth in several key metrics.
Financial Results for Q1
Colgate-Palmolive reported a 3.1% decrease in net sales, totaling $4.911 billion compared to $5.065 billion in the same period last year. Despite this decline, the company noted a 1.4% increase in organic sales, which includes a 0.4% negative impact from lower private label pet volume. The foreign exchange impact was significant, contributing to a 4.4% reduction in net sales. GAAP earnings per share (EPS) rose by 2% to $0.85, while Base Business EPS increased by 6% to $0.91.
Updated Financial Guidance for 2025
Colgate-Palmolive has updated its financial guidance for the full year 2025, expecting net sales to grow by low single digits, with a low-single-digit negative impact from foreign exchange. Organic sales growth is projected to be between 2% and 4%. The company anticipates that gross profit margin will remain roughly flat on both GAAP and non-GAAP bases.
Divisional Performance and Outlook
Divisional performance varied, with Europe showing a 2.5% increase in net sales and a notable 12% rise in operating profit. In contrast, Latin America and North America experienced declines in both net sales and operating profit. However, Hill’s Pet Nutrition reported a 30% increase in operating profit, highlighting the robust performance of this segment.
Colgate-Palmolive's updated guidance reflects a cautious yet optimistic outlook for the remainder of the year amidst ongoing global market uncertainties.
