Colgate-Palmolive Stock Drops as Foreign Exchange Pressures Weigh on Revenue and Outlook
Key Takeaways:
The maker of Colgate toothpaste, dishwashing liquid, and Hill's pet food posted a slight revenue decline of 0.1% year-over-year to $4.94 billion, falling short of analysts' expectations of $4.98 billion (Visible Alpha). Adjusted earnings per share (EPS) came in at $0.91, surpassing forecasts.
CEO Noel Wallace stated that despite macroeconomic challenges, Colgate achieved its goals for 2024, including delivering industry-leading growth and maintaining flexibility in its profit and loss structure.
Despite the day’s decline, Colgate-Palmolive shares remain slightly higher over the past year, reflecting resilience amid external pressures.
Key Takeaways:
- Colgate-Palmolive's Q4 revenue was negatively impacted by unfavorable foreign exchange rates.
- Sales declined in key markets, including Latin America and North America, missing analysts' revenue forecasts.
- The company expects full-year 2025 revenue to remain flat due to ongoing foreign exchange challenges.
The maker of Colgate toothpaste, dishwashing liquid, and Hill's pet food posted a slight revenue decline of 0.1% year-over-year to $4.94 billion, falling short of analysts' expectations of $4.98 billion (Visible Alpha). Adjusted earnings per share (EPS) came in at $0.91, surpassing forecasts.
Latin America Sales Decline Amid Forex Challenges
Foreign exchange impacts reduced revenue by 4.4%, significantly affecting Latin America, the company’s largest regional market, where sales dropped 7.2%. North American sales also declined by 1%. However, growth was recorded in Europe (+4.9%), Asia-Pacific (+3.7%), and Africa/Eurasia (+2.8%). Sales at Hill’s, which accounted for the largest share of Colgate’s total revenue, increased 2.3%.CEO Noel Wallace stated that despite macroeconomic challenges, Colgate achieved its goals for 2024, including delivering industry-leading growth and maintaining flexibility in its profit and loss structure.
2025 Outlook
For 2025, Colgate expects revenue to remain "roughly flat" compared to 2024's $20.1 billion, factoring in a mid-single-digit negative impact from foreign exchange rates. This falls short of Visible Alpha's estimate of $20.3 billion.Despite the day’s decline, Colgate-Palmolive shares remain slightly higher over the past year, reflecting resilience amid external pressures.