On Friday, Colgate-Palmolive Co., a leading manufacturer of consumer products, announced a considerable increase in their fourth-quarter profit that surpassed market expectations. Notably, their top-line growth also exceeded Wall Street predictions.
For the fiscal year 2024, the company forecasts a double-digit growth in reported earnings per share (EPS), along with a mid to high single-digit EPS growth on an adjusted basis.
Projected sales growth is set at 1% to 4% from last year's revenue of $19.46 billion. The company anticipates organic sales growth to align with its long-term goal of 3% to 5%.
Colgate-Palmolive reported an 8.5% growth in both net and organic sales for fiscal 2023, with growth seen across all divisions and categories.
The company also plans to increase its advertising investments and expand its gross profit margin in 2024.
Noel Wallace, Chairman, President, and CEO, stated, "Our robust growth momentum and improved organic volume performance this year instill our confidence in ensuring sustainable, compounded EPS growth in 2024 and years to come."
The company's net income for the fourth quarter was a significant $718 million, or $0.87 per share, a considerable increase from $5 million or $0.01 per share from the previous year.
Adjusted earnings for the same period rose to $720 million or $0.87 per share from $641 million or $0.77 per share in the previous year.
Average estimated earnings were expected to be $0.85 per share according to figures assembled by Thomson Reuters. These estimates typically do not include special items.
The company's gross profit margin and base business gross profit margin both saw a significant increase of 400 basis points to 59.6% in the quarter.
Quarterly revenue rose by 7% to $4.95 billion from $4.63 billion in the previous year. The expected revenue for the quarter, according to Wall Street, was $4.9 billion.
Organic sales experienced a 7% increase, with volume remaining steady.
North America, accounting for 20% of the company's total sales, achieved a 3.5% sales growth with a 0.5% rise in volume, particularly in oral care and personal care. Meanwhile, sales in Latin America escalated by 18%, driven by an 8% growth in volume.
In Europe, sales advanced by 10%, even as volume decreased by 4%. Sales in the Asia Pacific region marginally increased by 0.5%, despite a 4.5% drop in volume. In Africa/Eurasia, sales declined by 4%, while volume increased by 7.5%.
In pre-market trading on the NYSE, shares of Colgate-Palmolive were priced at $80.47 but dropped by 1%.
