Yesterday (October 27th), Colgate-Palmolive announced its financial data for the third quarter of 2023.
The data shows that Colgate-Palmolive achieved a net sales of $4.915 billion in Q3, with a year-on-year growth of 10.5% and organic growth of 9%. Five out of six segments, as well as all categories, experienced growth.
Colgate-Palmolive stated that both net sales and organic sales achieved strong growth in the third quarter, maintaining a leading position in the toothpaste industry and manual toothbrush sector. Specifically, the company holds a global market share of 41% in the toothpaste industry and 31.5% in the manual toothbrush market.
Looking at the details, in the Asia-Pacific region, operating profit in the third quarter increased by 4% to $193 million, accounting for 28.3% of net sales. Colgate-Palmolive mentioned that the decline in organic sales in the Greater China region was offset by growth in India and the Philippines. Furthermore, the percentage of operating profit to net sales also increased, mainly due to the company’s growth financing plan and improved pricing, resulting in cost savings.
In Latin America, the third-quarter sales accounted for 24% of the company’s overall sales, with operating profit reaching $372 million, a year-on-year increase of 29% and accounting for 31.2% of net sales. Colgate-Palmolive stated that Argentina, Mexico, Brazil, and Colombia led the growth in organic sales in this region.
In the North American region, operating profit in the third quarter accounted for 20% of the company’s overall sales, recording $231 million. The growth in organic sales in this region was driven by oral care and personal care performance. Additionally, sales in Europe, Africa/Eurasia, and Hill’s Pet Nutrition accounted for 15%, 5%, and 22% of the company’s overall sales, respectively.
Noel Wallace, Chairman, President, and CEO of Colgate-Palmolive, stated, “We are pleased to have delivered strong growth for the quarter and are particularly satisfied with the quality of our performance this quarter, following a strong first half of the year. Notably, our gross margin continued to grow for the third consecutive quarter, and we achieved double-digit operating profit growth for the second consecutive quarter.”
Based on the current performance, Colgate-Palmolive has raised its full-year guidance. The company now expects net sales growth of 6%-8%, compared to the previous guidance of 5%-8%, and organic sales growth guidance is increased to 7%-8%, from the previous range of 5%-7%.