Colgate-Palmolive 4Q Sales Beat Estimates, Led by Latin America Division

By Denny Jacob

Colgate-Palmolive posted better-than-expected sales in the quarter, led by sales growth in its Latin America division.

The consumer-products company logged net income of $718 million, or 87 cents a share, for the fourth quarter ended Dec. 31, surging up from $5 million, or 1 cent a share, a year earlier. Adjusted earnings were also 87 cents a share, slightly above analysts' estimates of 85 cents.

Sales rose to $4.95 billion from $4.63 billion. Analysts polled by FactSet expected $4.89 billion.

The company's Latin America division, which accounted for nearly one-fourth of sales in the quarter, reported the biggest sales growth from a year earlier at 18%. Colgate-Palmolive noted that organic sales growth in the division was led by Argentina, Mexico, Brazil and Colombia.

For 2024, Colgate-Palmolive forecast sales growth in the range of 1% to 4% including a low single-digit negative impact from foreign exchange. It also said it expects organic sales growth to be within its long-term targeted range of 3% and 5%.

Colgate-Palmolive also expects to expand its gross profit margin and increase investment in advertising. It expects EPS growth in the double-digits, while on an adjusted basis, EPS growth is expected to be in the mid to high-single-digit range.

"Our results this year and our strong growth momentum, including improved organic volume performance, add to our confidence that we are well positioned to deliver consistent, compounded earnings per share growth in 2024 and beyond," said Chief Executive Noel Wallace.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

January 26, 2024 07:35 ET (12:35 GMT)

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