Colgate-Palmolive (NYSE:CL) reported a solid set of results for the second quarter.
The company posted a profit per share of 77 cents, just ahead of the consensus of 75 cents. Revenue jumped 7.5% year-over-year to $4.82 billion, again better than Street’s $4.68B. Organic sales jumped 8% YoY, easily topping the average analyst estimate of +5.4%.
“We believe we are well positioned to continue to drive top and bottom line growth through the balance of 2023 as our gross margin expansion, driven by sustained pricing and the benefits from funding-the-growth and other productivity initiatives, allows us to invest behind our brands. Advertising spending increased significantly in the quarter to drive brand health and in support of our strong innovation and pricing activity. Strong investment levels should continue in the back half of the year as we work to deliver balanced organic sales growth,” said Noel Wallace, chairman, president, and chief executive officer.
The company performed especially strong in Latin America, where organic sales rose 16% YoY.
As a result, CL now expects full-year organic sales growth of 5-7%.
“The Company still expects gross profit margin expansion and increased advertising investment and now expects earnings-per-share growth to be at the high end of mid-single-digits,” the company added.
CL shares are trading modestly lower in early Friday trading.