Colgate-Palmolive Posts Q3 Revenue Below Street View

Colgate-Palmolive Co CL reported third-quarter FY22 sales growth of 1% year-on-year to $4.46 billion, missing the consensus of $4.49 billion.
Organic sales increased by 7%. Total Oral, Personal, and Home Care net sales increased by 0.4% to $3.6 billion.
Non-GAAP EPS of $0.74 was in line with the analyst consensus.
Gross profit was $2.55 billion, while the margin contracted 220 basis points to 57.2%.
Selling, general and administrative expenses remained flat at $1.6 billion.
Operating margin contracted 60 basis points to 21.3%, and operating income for the quarter fell 2.1% to $947 million.
The company held $938 million in cash and equivalents as of September 30, 2022. Net cash provided by operations was $1.9 billion for the nine months.
"As expected, significant increases in raw and packaging material and logistics costs continued during the quarter and the negative impact from currency accelerated," said Chairman, President, and CEO Noel Wallace.
Outlook: Colgate sees FY22 organic sales growth guidance at 6% - 7% versus prior 5% - 7%.
The company now expects net sales growth to be in the middle of the 1% - 4% range, including an approximately 5% negative impact from foreign exchange and a modest benefit from the Red Collar acquisition.
On a non-GAAP basis, the company still expects a decline in gross profit margin and now expects roughly flat advertising investment and a 7% - 8% EPS decline, reflecting the incremental negative impact from foreign exchange.
Price Action: CL shares are trading lower by 1.00% at $72.50 in premarket on the last check Friday.

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