Colgate Palmolive Reports Strong Fourth Quarter Results

Dental, personal care, and pet food products manufacturer, Colgate Palmolive Co. (CL), announced impressive financial results for the fourth quarter. The company posted a net income of $718 million, or 87 cents per share, compared to $5 million, or 1 cent per share, in the same period last year. Adjusted earnings per share stood at 87 cents, surpassing the FactSet consensus of 85 cents. Furthermore, sales increased to $4.950 billion from $4.629 billion, outperforming the FactSet consensus of $4.893 billion.

Investing in Brand Building

Colgate Palmolive Co. capitalized on their strong margin performance by increasing their advertising spending by 19% in 2023. Looking ahead, CEO Noel Wallace stated that they anticipate even higher levels of brand investment throughout 2024.

Positive Growth Outlook

The company is projecting a sales growth of 1% to 4% for 2024. This includes an anticipated low-single-digit impact from foreign exchange fluctuations. Additionally, Colgate Palmolive Co. expects a gross profit margin expansion, augmented advertising investment, and double-digit growth in earnings per share (EPS). Adjusted EPS is anticipated to grow by a mid-to-high-single-digit percentage.

Market Performance

Colgate Palmolive Co.'s stock showed promising signs, increasing by 0.7% in premarket trading. Over the past year, the stock has gained 7%, while the S&P 500 has experienced a growth of 20.5%.

With these impressive quarterly results and a positive growth outlook, Colgate Palmolive Co. is poised to maintain its position as a leading player in the dental, personal care, and pet food products market.