Colgate-Palmolive Co. shares
CL,
Premarket shares fell 4% Friday after the company warned that inflation and geopolitical worries would continue to press their buttons. The net income of the consumer goods giant was $559million, or 66c per share. It is down from $681million (or 80c per share) in the year-earlier period. The FactSet consensus was matched by adjusted per-share earnings of 74 cents. Sales increased to $4.399 billion, from $4.344 trillion, surpassing the $4.398 billion FactSet consensus. The company’s gross profit margin and base business profit margin both fell 220 basis point. “While our growth was steady on the top line,” Noel Wallace, chief executive, stated in a statement. “Our profitability was impacted significantly by increases in raw material costs worldwide, which we expect to continue for the next several quarterly.” “We are still focused on revenue growth management. This includes additional pricing, funding-the-growth, and other productivity initiatives. Wallace also mentioned the uncertainty resulting from Russia’s invasion and subsequent collapse of supply chains, as well as the COVID pandemic and other productivity initiatives as the main pressures on his business. The company now expects full year sales growth to be between 1% and 4%, which is in line with its 1%-4% guidance. It expects a decrease in gross profit margins, higher ad spending, and double-digit growth in EPS. 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 fall premarket as company claims that difficult cost environment will continue to weigh on profits
