Colgate-Palmolive Co. (NYSE: CL) posted third-quarter results that topped earnings estimates but trimmed its full-year sales outlook as slowing category growth weighed on performance.
Adjusted earnings per share were $0.91, above the consensus forecast of $0.89. Revenue came in at $5.13 billion, matching analyst expectations and up 2% from a year earlier. Organic sales growth was modest at 0.4%, with a 0.8% negative impact from the company’s exit from private label pet sales.
The company maintained its leadership position in oral care, holding a 41.2% global market share in toothpaste and 32.4% in manual toothbrushes year to date. However, it reduced its organic sales growth forecast for 2025 to 1%–2% from the previous 2%–4%, citing softer market conditions.
Gross profit margin on a base business basis declined 190 basis points to 59.4%, while operating profit fell 2% to $1.06 billion.
Regional performance was mixed: Europe delivered the strongest growth with a 7.6% sales increase, while Asia Pacific fell 1.5%. Hill’s Pet Nutrition, which represents about 22% of company sales, saw net sales rise 1.4%, though organic sales slipped 1.3%.
Colgate-Palmolive reaffirmed its full-year guidance for low-single-digit EPS growth and said it expects full-year gross margin to remain roughly in line with the year-to-date level of 60.1%.
