Colgate-Palmolive Company (NYSE:CL) shares are trading lower on Friday after the company reported its third-quarter financial results.
The consumer products giant reported third-quarter adjusted earnings per share of 91 cents, beating the analyst consensus estimate of 89 cents.
Quarterly sales of $5.131 billion were in line with the Street view. Net sales rose 2% in the latest period.
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Organic sales grew 0.4%, reflecting a 0.8% drag from winding down private label pet products.
The company maintained its lead in toothpaste, holding a 41.2% global market share year-to-date. It also remained at the top in manual toothbrushes, with a 32.4% worldwide share over the same period.
“As we transition to our new 2030 strategy and deploy our previously announced Strategic Growth and Productivity Program, we are well positioned to reaccelerate growth despite uncertainty in global markets and lower worldwide category growth,” said Noel Wallace, Chairman and President and Chief Executive Officer.
Metrics
North America’s organic sales slumped 0.5% year over year, while those in Latin America jumped 1.7%. Organic sales in Europe gained 1.2% in the quarter under review.
GAAP gross profit margin slipped 170 basis points to 59.4% in the quarter. The base business gross profit margin fell 190 basis points, ending at 59.4%.
Operating profit in the quarter under review was $1.059 billion, compared with $1.065 billion a year ago. The operating profit margin was 20.6% compared with 21.2% in the same period last year.
The company exited the quarter with cash and equivalents worth $1.279 billion. Inventories totaled $2.109 billion.
Colgate-Palmolive reported operating cash flow of $2.745 billion for the nine months ended Sept. 30, versus $2.838 billion a year earlier.
Outlook
Colgate expects 2025 results to reflect current spot rates and finalized tariffs as of Oct. 29, 2025.
The toothpaste maker expects Net sales to rise by a low single digit, with a slight drag from foreign exchange.
Organic sales growth is now 1%–2%, including a ~70 basis points hit from exiting private-label pet sales.
On a GAAP basis, the gross margin is expected to track roughly in line with the 60.1% year-to-date level.
CL Price Action: Colgate-Palmolive shares were down 1.48% at $75.37 at the time of publication on Friday. The stock is trading near its 52-week low of $75.38, according to Benzinga Pro data.
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