Colgate-Palmolive Q2 Earnings Surpass Estimates; Predicts Fiscal Year 2025 Organic Sales Growth Towards the Lower End of Projected Range
Colgate-Palmolive Co. (CL) has updated its fiscal 2025 outlook, anticipating net sales growth in the low single digits and an organic sales growth rate at the low end of 2% to 4%. The company targets earnings per share (EPS) of approximately $3.76 for the fiscal year 2025.
The company's Q2 2025 results saw net sales rise 1.0% with organic sales growth of 1.8%, despite a drag from the pet category. The organic sales growth guidance was narrowed to the low end of the previous 2% to 4% range, factoring in a planned exit from certain pet nutrition products.
In response to ongoing margin pressures, Colgate-Palmolive has announced a new three-year productivity program to drive future growth and support its 2030 strategy. The initiative is expected to provide meaningful savings that will help offset these pressures. While exact quantification was not detailed, the productivity program is anticipated to contribute positively to earnings quality and margin resilience amid inflationary and competitive challenges.
Substantially all charges resulting from the productivity program are expected to be incurred by December 31, 2028. The program is projected to result in cumulative pre-tax charges, once all initiatives are approved and implemented, totaling between $200 and $300 million over the course of the three-year program.
Colgate-Palmolive's Q2 2025 earnings and revenues surpassed market estimates. The company reported adjusted earnings of $750 million or $0.92 per share, a decrease from $753 million or $0.91 per share in the same quarter last year. The Street expected revenues of $5.03 billion, but Colgate-Palmolive's revenue for the period rose 1% to $5.11 billion from $5.06 billion last year. Organic sales growth for the quarter was 1.8%.
Despite the positive Q2 results, Colgate-Palmolive has not provided updates on its EPS expectations for fiscal 2025, its net sales expectations excluding the impact of foreign exchange, its organic sales growth expectations for fiscal 2025, or its gross profit margin expectations for fiscal 2025.
Colgate-Palmolive shares were gaining around 1.3 percent to trade at $84.96 in pre-market activity on the NYSE. The company continues to expect gross profit margin to be roughly flat and earnings per share to be up low single digits on an adjusted, Base Business, basis.
In the light of Colgate-Palmolive's Q2 2025 earnings and revenues surpassing market estimates, investors might consider the company's business prospects for future financing and investing opportunities, especially with the announcement of a three-year productivity program aimed at driving growth and offsetting margin pressures. Despite the company's continuous focus on earnings per share (EPS) growth, no updates on the 2025 EPS expectations have been provided, leaving room for speculation in the business community.
