Colgate-Palmolive’s (CL) net income declines but revenue up - Kalkine Media

October 29, 2021 11:29 AM PDT | By Sanjeeb Baruah
Follow us on Google News:

Highlights

  • 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.

Third-Quarter Performance

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.

Segment-wise

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. 

Also Read: Stripe bets big on carbon-capture, offers US$1 mn reward for achievers

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. 

Also Read: Caterpillar (CAT), Illinois (ITW) report solid revenue growth in Q3

Source – Pixabay

Image Description – (Earning Results, Colgate-Palmolive Company Common Stock (NYSE: CL))

Also Read: Yum! (YUM) beats profit estimates, Hershey (HSY) raises guidance

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%.

Also Read: Are these 7 digital payment stocks primed for online shopping boom?

Bottomline

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.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.



Top Listed Companies