NEW YORK, May 1, 2026, 13:01 (EDT)
- Colgate-Palmolive posted first-quarter sales and adjusted earnings that topped estimates, driven by stronger international demand.
- The company flagged roughly $300 million in extra raw-material and logistics expenses for this year, citing the Middle East conflict.
- North America continued to lag, volumes slipping 3.2%, while Latin America, EMEA, and Asia Pacific all posted gains.
Colgate-Palmolive on Friday projected roughly $300 million in additional raw-material and logistics expenses for this year. Still, robust international sales pushed first-quarter results past Wall Street forecasts and lifted shares. The stock gained about 3.1%, last trading at $88.00. Reuters
This isn’t just about Colgate. Procter & Gamble and Unilever have raised similar red flags, with both companies pointing to rising costs tied to Middle East turmoil and supply chain snags. Commodity prices are surging, and with consumers already hunting for bargains, it’s getting harder for consumer-goods firms to pass on higher prices. Reuters
Colgate posted net sales of $5.324 billion, an 8.4% increase over the prior year. Organic sales were up 2.9%, excluding the effects of currency, acquisitions, and divestitures. Base Business EPS climbed 7% to 97 cents, but GAAP earnings per share dropped 6%, landing at 80 cents. Colgate-Palmolive Company
LSEG data referenced by Reuters put the consensus sales estimate at $5.22 billion. Adjusted EPS landed 2 cents above forecasts. Reuters
Noel Wallace, chairman and CEO, described it as “a strong start to 2026,” highlighting gains in all categories and in four out of five Colgate divisions. Still, he flagged “volatile macroeconomic conditions and slower category growth” as concerns going forward this year. Colgate-Palmolive Company
North America was the outlier: net sales slipped 1.8%, with organic sales down 2.2% and a 3.2% dip in volume. Latin America jumped 14.8%. Europe, Middle East and Africa logged an 11.9% increase. Asia Pacific climbed 8.9%. Hill’s Pet Nutrition brought in a 6.7% gain. Colgate-Palmolive Company
Margins didn’t hold up. Gross profit margin landed at 60.6%, slipping 20 basis points from last year. Management pointed to raw material costs, tariffs, and currency moves—those together took 350 basis points off the gross margin. Some of that hit was softened by price hikes and cost-cutting, they added. Colgate-Palmolive Company
Colgate left its 2026 guidance unchanged, still projecting net sales growth between 2% and 6%, with organic sales growth in the 1% to 4% range. The company, however, lowered its outlook on gross profit margin, now anticipating a decline for this year—reversing its earlier forecast for an improvement. Colgate-Palmolive Company
The company bumped up its estimated pre-tax charges under the Strategic Growth and Productivity Program, the ongoing initiative to trim expenses and overhaul operations. A fresh filing now pegs those charges between $350 million and $550 million—substantially higher than the previous $200 million to $300 million range—with the bulk anticipated by the end of 2028. Colgate-Palmolive Company
The risk? Costs could climb further. Colgate flagged the threat of extra tariffs and rising material expenses tied to the Middle East conflict—both would squeeze margins more. North American volumes are already weak, meaning there’s little space left to simply hike prices. Colgate-Palmolive Company
Investors zeroed in on the earnings beat and international momentum. The real challenge looms: can Colgate hold onto its margins without pushing more U.S. customers toward lower-priced rivals?
