Colgate-Palmolive sees drop in sales over forex impact

The Colgate-Palmolive Company has reported a 3.1 percent drop in net sales, from $5.065 billion in the first quarter of last year to $ 4.911 billion in the same period this year, due to a foreign exchange impact of 4.4 percent. 

The company’s gross profit reduced from $3.039 billion in the first quarter of last year to $2.987 billion in the same quarter this year, with an increase of 0.8 per cent in its gross profit margin to 60.8 per cent. 

The company’s operating profit increased to $1.076 billion in the first quarter of this year from $1.047 billion as compared to the same period last year, with its operating profit margin increasing to 21.9 per cent. 

Colgate-Palmolive’s net income grew from $683 million in the first quarter of last year to $690 million in the same quarter this year. 

Based on the current spot rate and an estimate of the impact of the tariff announcement, the organisation has projected earnings per share and net sales to increase by low single digits due to negative impacts from foreign exchange.

“Our focus on building flexibility into our profit and loss statement enabled us to deliver year-over-year growth in operating profit, net income and earnings per share despite the volatile operating environment,” said Noel Wallace, chairman, president and CEO of Colgate-Palmolive Company.