Colgate-Palmolive has raised its annual forecast for 2025 after a boost in sales during its first quarter of trading.
The conglomerate, which owns skin care brands Sanex and Laboratoires Filorga, reported a total organic sales increase of 1.4%.
Although overall net sales decreased by 3.1% to US$4.91bn, the results beat Wall Street analyst expectations of $4.87bn for the quarter.
“Colgate-Palmolive people delivered another quarter of organic sales and earnings per share growth in the face of very difficult market conditions worldwide,” said Noel Wallace, Chairman, President and CEO of Colgate-Palmolive.
“The positive organic sales growth, in a period of slowing category growth in many markets, is a testament to the strength of our brands and our commitment to executing against our strategy.”
Colgate-Palmolive also revealed plans to raise prices on goods in 2025 during its earnings update.
The company stated that US President Donald Trump’s tariff increases will result in a gross impact of approximately $200m on the cost of goods sold in 2025.
Raw and packaging material costs are also anticipated to increase “modestly” this year.
“As we look ahead, uncertainty and volatility in global markets, including the impact of tariffs, remain challenging,” said Wallace.
“We are confident in our strategy and will continue to execute with focus and agility to mitigate these factors and achieve our revised 2025 financial targets.”
The company now expects net sales, including the impact of the new tariffs, to be up to low single-digits for 2025.
This also includes a low single-digit negative impact from foreign exchange.
Organic sales growth has been adjusted down slightly and is expected to fall between 2% to 4% – a decrease from the previously predicted 3% to 5% boost.
Wallace added: “Our focus on building flexibility into our P&L enabled us to deliver year-over-year growth in operating profit, net income and earnings per share despite the volatile operating environment.”