May 1 (Reuters) - Colgate-Palmolive beat expectations for first-quarter sales and profit on Friday, helped by strong international demand for household staples such as oral and personal care products.
Shares of the company that makes Colgate toothpaste and Palmolive soaps rose 3% in premarket trading. They have gained 8% so far this year.
The company has benefited from steady demand for its toothpaste and manual toothbrushes as well as household cleaning products despite price hikes, which helped boost margins and make up for higher tariffs and raw material costs.
The conflict in the Middle East is increasing pressure on raw materials, packaging and logistics costs and can also hurt global consumer spending, Colgate said. It predicted significant inflationary pressure due to rising prices of oil and other commodities.
Colgate-Palmolive posted net sales of $5.32 billion for the three months ended March 31. Analysts on average expected revenue of $5.22 billion, according to data compiled by LSEG.
Adjusted earnings per share of 97 cents surpassed analysts' estimate of 95 cents.
Colgate's strength in its international markets has helped counter falling demand in the U.S. as budget‑conscious shoppers look to save by choosing lower-priced alternatives amid higher living costs.
North America segment volumes fell 3.2% in the quarter, but overall volumes inched up 1.1%. Overall pricing increased 2.2%.
The company's upbeat quarterly results mirror those of consumer goods rivals Procter & Gamble's from last week and Kimberly-Clark's from Tuesday.
Surging oil prices had caused P&G to warn of a roughly $1 billion post-tax hit to its full-year profit while Kimberly-Clark flagged $170 million in incremental costs in the second half of the year.
Colgate reaffirmed its annual sales and profit forecasts but said it expects the volatile macroeconomic conditions and slower category growth to continue in 2026.
Reporting by Neil J Kanatt in Bengaluru
Source: Reuters