Colgate Beats Q3 Earnings & Sales Estimates, Raises 2024 View

Core Insights - Colgate-Palmolive Company reported strong third-quarter 2024 results, with both top and bottom lines exceeding expectations and showing year-over-year improvement [1][2] - The company raised its 2024 outlook for net sales, organic sales, and adjusted EPS, indicating confidence in continued growth [1][11] Financial Performance - Earnings per share (EPS) on a Base Business basis were 91 cents, a 6% increase from the prior year, surpassing the Zacks Consensus Estimate of 88 cents [1][2] - Net sales reached $5.03 billion, a 2.4% increase from the previous year, beating the Zacks Consensus Estimate of $5.01 billion; organic sales grew by 6.8% [2][5] - Gross profit was $3.07 billion, up 6.8% year over year, with the gross profit margin expanding by 260 basis points to 61.1% [5][6] Segment Performance - North America's net sales decreased by 2.1% year over year, impacted by a 3.2% decline in pricing, although volume increased by 1.2% [7] - Latin America's net sales fell by 3.2% year over year, with a significant 17.4% unfavorable currency impact, despite a 10.9% pricing gain [7] - Europe's net sales increased by 8% year over year, driven by a 4.1% rise in volume and a 2.2% pricing gain [8] - The Asia Pacific segment saw a 6.3% increase in net sales, with a 6.5% rise in volume [8] - Hill's Pet Nutrition's net sales improved by 6.3% year over year, supported by a 3.6% increase in volume [9] Outlook - The company anticipates net sales growth of 3-5% for 2024, raising the low end of its previous guidance [11] - Organic sales growth is expected to be between 7-8%, an increase from the earlier forecast of 6-8% [11] - Colgate expects gross profit margin expansion driven by pricing gains and revenue growth management initiatives [11][12]