- Colgate-Palmolive Company (NYSE: CL) net and organic sales grew by 6.5% and 4.5%, respectively, in the third quarter of 2021.
- The company’s net income was US$634 million compared to US$698 million a year ago.
- The company expects its FY 2021 net sales to increase by around 4% to 7% YoY.
Colgate-Palmolive Company (NYSE: CL) on Friday said its net income declined to US$634 million year-over-year in the third quarter, but sales jumped due to higher pricing and volume growth.
The stock was marginally down 0.27% to US$76.67 at 12:18 pm ET after the results.
Colgate-Palmolive’s net sales increased to US$4.41 billion in the quarter from US$4.15 billion a year ago. Its net and organic sales grew 6.5% and 4.5%, respectively.
The Oral, Personal and Home Care segment contributed US$3.57 billion, and Pet Nutrition segment sales were US$845 million, bringing the total sales to US$4.41 billion.
North America contributed 21% of total sales, Latin America 21%, Europe 16%, Asia Pacific 17%, Africa/Eurasia 6%, and Hill's Pet Nutrition segment contributed 19% of the total sales.
The company’s gross profit margin was 59.4% for Q3, 2021, compared to 61.2% in the corresponding quarter of 2020. The net income attributable to Colgate-Palmolive Company was US$634 million compared to US$698 million in Q3 of 2020.
The GAAP earnings per share declined 7% to US$0.75. Also, its net cash from operations was US$2.2 billion for the first nine months of 2021.
Source – Pixabay
Image Description – (Earning Results, Colgate-Palmolive Company Common Stock (NYSE: CL))
Full-year 2021 Guidance
The company expects net sales to increase by 4% to 7% and organic sales to be in the range of 3% to 5% up YoY. The company also anticipates the gross profit margin to decline further due to higher advertisement investment and low EPS growth.
The New York-based consumer non-durable company has been in existence since 1806. Its products include beauty, cosmetics, and home care items, and they are sold in more than 200 countries. It has a market capitalization of US64 billion, a P/E ratio of 24.06, and a dividend yield of 2.37%.
Though the material and logistics costs have increased, it maintained its leadership position in the toothpaste segment with a global market share of 39.5% YTD. The company expects a “challenging cost environment” in the fourth quarter. The company said it would focus on revenue growth initiatives and additional product pricing in the quarter.