Colgate-Palmolive Tops Q1 Estimates, Revises 2025 Earnings Due to Tariffs

Published 7 hours agoCL

Colgate-Palmolive Tops Q1 Estimates, Revises 2025 Earnings Due to Tariffs

Colgate-Palmolive reported impressive first-quarter financial results, with net sales reaching $4.91 billion, outpacing market expectations of $4.87 billion. The company also posted organic sales growth of 1.4% and a rise in adjusted earnings per share to 91 cents, surpassing the forecasted 86 cents. Additionally, the gross profit margin increased by 80 basis points to 60.8%, highlighting strong financial performance, according to Reuters.

Despite the robust first-quarter results, Colgate-Palmolive adjusted its 2025 earnings outlook in response to the financial impact of new U.S. and China tariffs. These tariffs are expected to raise costs by an estimated $200 million, particularly affecting raw materials and Mexican toothpaste imports. Consequently, Colgate revised its annual organic sales growth forecast to between 2% and 4%, down from the prior 3% to 5% range as highlighted by Reuters.

In reaction to these developments, Colgate's shares rose by 1% to $94.20 in premarket trading. CEO Noel Wallace addressed the challenges posed by global market volatility and tariff pressures, underscoring the company's strategic efforts to manage these economic hurdles. Colgate-Palmolive's ability to adjust its strategies while maintaining financial growth underscores its commitment to navigating a complex market environment.

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