Colgate-Palmolive Co. shares
CL,
Premarket prices fell 4% Friday, following a drop in profit in the first quarter. The company also warned of continuing pressure from inflationary and geopolitical concerns. The net income for the quarter was $559 million, or 66cs per share. This is down from $681million, or 80cs per share, in the previous year. The FactSet consensus was met by adjusted per-share earnings at 74 cents. Sales increased to $4.399 billion from $4.344 trillion, just ahead the $4.398 billion FactSet consensus. The company’s gross profit margin and base business profit margin both fell 220 basis point. Chief Executive Noel Wallace stated that while our top line growth was sustained, the company’s profitability was negatively impacted by significant global increases in raw material costs and logistics costs. He also said that the company expects the current difficult cost environment will continue for the next several months. “We are still focused on revenue growth management. This includes additional pricing and funding the growth and other productivity initiatives. Wallace also mentioned the uncertainty caused by Russia’s invasion in Ukraine, the COVID epidemic, supply chain disruptions, volatility in consumer demand, and currencies as a major challenge to the business. The company expects full-year sales growth to be at the high end in its 1% to 4.4% guidance. It expects a decline of gross profit margins and increased advertising spending to drive double-digit EPS growth. However, adjusted EPS is expected to fall in the middle-single digits. The S&P 500 is up about 5% year-to-date, and shares are down around 5%.
SPX,
The decline was 10%
Colgate-Palmolive shares drop premarket because company says that the difficult cost environment will continue weighing on profit
