Colgate-Palmolive has exceeded sales expectations for the fourth quarter, driven by the impressive performance of its Latin America division.
Financial Highlights
The multinational consumer-products company recorded a net income of $718 million, or 87 cents per share, for the quarter ended December 31. This represents significant growth compared to the $5 million, or 1 cent per share, reported in the same period the previous year. Adjusted earnings were also reported at 87 cents per share, slightly surpassing analysts’ estimates of 85 cents.
Sales for the quarter increased to $4.95 billion from $4.63 billion, beating FactSet analysts’ forecast of $4.89 billion.
Latin America Division’s Impressive Growth
Colgate-Palmolive’s Latin America division contributed to nearly a quarter of the company’s total sales for the quarter. The division experienced a remarkable sales growth of 18% compared to the previous year. The company specifically highlighted Argentina, Mexico, Brazil, and Colombia as driving the organic sales growth within the division.
Outlook for 2024
Colgate-Palmolive has forecasted sales growth between 1% and 4% for 2024, taking into account a slight negative impact from foreign exchange. The company also expects organic sales growth to remain within its target range of 3% and 5%.
Additionally, Colgate-Palmolive aims to expand its gross profit margin and increase investments in advertising. It anticipates double-digit growth in earnings per share (EPS) while expecting mid to high-single-digit growth on an adjusted basis.
CEO’s Confidence in Future Growth
Chief Executive Noel Wallace expressed confidence in the company’s strong market performance and growth momentum. He stated, “Our results this year, along with our improved organic volume performance, give us the confidence to deliver consistent and compounded earnings per share growth in 2024 and beyond.”