Colgate-Palmolive Co. (CL) reported a profit for the first-quarter that declined 4.8 percent from last year. But, net sales for the first-quarter increased 6.0 percent, organic sales increased 5.0 percent. Both adjusted earnings and sales beat analysts’ estimates. The company reiterated its financial guidance for full year 2021.
In Friday pre-market trade, CL was trading at $81.53 up $1.71 or 2.14 percent.
Looking ahead, the company expects volatility in consumer demand and currencies as well as further increases in raw material prices and logistics costs, but remain confident that its investment choices and growth strategies will help the company manage through challenges and emerge even stronger.
The company reiterated its financial guidance for full year 2021. The company expects net sales to be up 4 percent to 7 percent including a low-single-digit benefit from foreign exchange. The company expects organic sales to be up within its long-term targeted range of 3 percent to 5 percent.
On a GAAP basis, the company expects gross margin expansion, increased advertising investment and low to mid-single-digit earnings-per-share growth. On a non-GAAP basis, the company expects gross margin expansion, increased advertising investment and mid to high-single-digit earnings-per-share growth.
The company’s first-quarter net income attributable to the company decreased 4.8 percent to $681 million from last year’s $715 million, with earnings per share declining to $0.80 from $0.83 in the previous year.
Non-GAAP earnings per share for the quarter were $0.80 compared to $0.75 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.79 per share for the quarter. Analysts’ estimates typically exclude special items.
Net sales for the first-quarter grew 6.0 percent to $4.34 billion from $4.10 billion in the previous year. Analysts expected revenues of $4.25 billion for the first-quarter.
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