Colgate-Palmolive was able to raise its sales in the third quarter thanks to higher prices, despite decreasing volumes. Net sales rose 2 % to 5.1 billion dollars (4.7 billion euros). At the same time, the group lowered its full-year organic growth forecast.
Mixed performance across regions
During the quarter, prices rose 2.3 %, while volume fell 1.5 %. Organic sales increased by 0.4 %. Lower sales of private label products in animal nutrition pushed organic growth down 0.8 %, after the company exited that non-strategic business.
Net sales decreased by 0.4 % in North America and by 1.5 % in Asia-Pacific, but increased by 2 % in Latin America, by 7.6 % in Europe and by 6.8 % in Africa/Eurasia. Pet food brand Hill’s Pet Nutrition recorded revenue growth of 1.4 %.
Profit and outlook
Operating profit fell by 1 % to 1.059 billion dollars (1 billion euros). Net profit went from 737 million dollars (680 million euros) in the same period last year to 735 million dollars (684 million euros).
For the full fiscal year, Colgate-Palmolive continues to expect modest net sales growth. Organic sales growth is now expected to be 1 to 2%, compared to a previous range of 2 to 4 %.
CEO Noel Wallace said that his company’s strategy for 2030 is its blueprint for adapting to the challenges and capitalising on the opportunities of this more complex operating environment, he said in a press release.
