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Why Colgate-Palmolive Shares Are Trading Lower Today

Benzinga · 04/29/2022 10:05
  • Colgate-Palmolive Co (NYSE:CLreported first-quarter FY22 sales growth of 1.5% to $4.399 billion, marginally missing the consensus of $4.4 billion.
  • Organic sales increased by 4%. Total Oral, Personal, and Home Care net sales decreased 0.9% to $3.5 billion.
  • Non-GAAP EPS of $0.74 missed the analyst consensus of $0.75.
  • Gross profit decreased 2.5% Y/Y to $2.57 billion, while the margin contracted 220 basis points to 58.5%.
  • Selling, general and administrative expenses rose 2.2% Y/Y to $1.6 billion.
  • Operating margin contracted 360 basis points to 19.5%, and operating income for the quarter fell 14.3% to $860 million.
  • The company held $877 million in cash and equivalents as of March 31, 2022. Net cash provided by operations was $386 million for the quarter.
  • "While our growth continued on the top line, our profitability was impacted by significant increases in raw material and logistics costs worldwide, and we expect the difficult cost environment to continue for the next several quarters," said Chairman, President, and CEO Noel Wallace.
  • Outlook: Colgate sees FY22 net sales growth at the higher end of the previously issued outlook of 1% - 4%.
  • It expects a decline in gross profit margin, increased advertising investment, and double-digit EPS growth on a GAAP basis.
  • CL expects a decline in gross profit margin, increased advertising investment, and a mid-single-digit EPS decline on a non-GAAP basis.
  • Price Action: CL shares are trading lower by 5.36% at $76.87 on the last check Friday.
  • Photo by Opal RT from Pixabay