Colgate-Palmolive Company (NYSE:CL) reported third-quarter FY23 sales growth of 10.5% year-on-year to $4.915 billion, beating the analyst consensus estimate of $4.814 billion.
Organic sales increased by 9%. Total Oral, Personal, and Home Care net sales increased by 7.6% to $3.85 billion.
Non-GAAP EPS of $0.86 beat the analyst consensus of $0.80.
Gross profit was $2.88 billion, while the margin expanded 130 basis points to 58.5%.
Selling, general and administrative expenses rose 11.5% to $1.8 billion.
Operating margin contracted 40 basis points to 20.9%, and operating income for the quarter increased 8.7% to $1.03 billion.
The company held $951 million in cash and equivalents as of September 30, 2023. Net cash provided by operations for nine months totaled $2.609 billion.
Outlook: Colgate sees FY23 net sales growth of 6%-8% (prior view 5% – 8%). The company now expects organic sales growth of 7%-8% (prior view 5% – 7%).
On a non-GAAP basis, the company still expects gross profit margin expansion and increased advertising investment, and the company now expects high-single-digits EPS growth (prior view high end of mid-single-digits).
Price Action: CL shares are trading higher by 0.88% at $73.73 on the last check Friday.
