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The increase was driven by a healthy balance of volume growth and higher pricing.
October 25, 2024
By: Lianna Albrizio
Associate Editor
Net sales for Colgate-Palmolive reported strong top- and bottom-line results in Q3 2024 with earnings exceeding expectations, officials said.
Net sales were $5 billion, a 2.4% increase from the prior-year quarter of $4.9 billion. Organic sales saw a 6.8% spike on top of an 8.8% organic sales growth in the year-ago quarter. The increase, according to CEO Noel Wallace, was driven by a healthy balance of volume growth and higher pricing.
“Every operating division delivered positive volume growth for the second consecutive quarter as we focus on increasing household penetration to drive category growth and market shares,” said Wallace. “We are particularly pleased with the quality of our results this quarter on top of our strong first half results. This is our sixth consecutive quarter delivering gross margin expansion along with growth in operating profit, net income and earnings per share.”
Advertising, he added, increased 16% in the quarter behind science-led, core and premium innovation across price tiers. The company, he said, expects continued strong advertising investment through the remainder of the year as we focus on building brand health and scaling the capabilities needed to drive growth.
Regarding full-year guidance for 2024 based on current spot rates, the company said it expects net sales growth of 3% to 5% (versus 2% to 5% previously) including a mid-single-digit negative impact from foreign exchange, and organic sales growth of 7% to 8%, versus a previous conjecture of 6% to 8%.
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