By Will Feuer
Colgate-Palmolive Co. said it expects its gross profit margins to compress this year even as it voiced optimism about sales growth.
The consumer-products company said it now expects full-year net sales to be at the high end of its guidance for 1% to 4% growth. The company also raised its guidance on organic sales, which strips out currency effects, to 4% to 6% growth, up from 3% to 5%.
The company also said it now expects to see its gross profit margins decline on both a GAAP and adjusted basis. The company previously said it expected margin expansion.
The company said it still expects double-digit earnings-per-share growth, but it now expects adjusted earnings to fall by a mid-single-digit percentage. It previously expected mid-single-digit adjusted earnings growth.
"As we look around the world, there is still much uncertainty stemming from the COVID-19 pandemic, supply chain disruptions, the war in Ukraine and volatility in consumer demand and currencies. Despite this environment, we are encouraged by our growth momentum," Chief Executive Noel Wallace said.
"As we manage through this difficult time, we are committed to executing our plans with the right balance of pricing, productivity and brand support," he said.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
April 29, 2022 07:30 ET (11:30 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.