(New York) The American hygiene and household products group Colgate-Palmolive achieved financial performance in the fourth quarter that exceeded market expectations, and anticipates maintaining this “growth dynamic” in 2024 and beyond.
Noel Wallace, boss of the group, noted in a press release on Friday that turnover had increased in 2023 in all geographic zones and branches of activity, stressing that for the fifth year in a row, like-for-like sales exceeded the long-term objective of growth of 3 to 5% per year.
They jumped 8.5% to $19.45 billion.
In the fourth quarter alone, turnover increased by 7% year-on-year to 4.95 billion and net profit reached 718 million, compared to 5 million a year earlier.
The last quarter of 2022 was burdened by a depreciation charge of 612 million after tax linked to the French pharmaceutical laboratory Filorga, purchased in 2019.
Reported per share and excluding exceptional items – a benchmark for the markets –, net profit stood at 87 cents in the fourth quarter of 2023. Analysts’ consensus expected 84 cents.
Colgate-Palmolive reported that it increased its advertising spending by 19% over the year and even plans to spend more in the current fiscal year.
“The quality of our results [en 2023] and our strong growth momentum, including the best performance in terms of like-for-like volumes, fuels our confidence that we are well positioned to deliver sustainable and substantial earnings per share growth in 2024 and beyond. , affirmed Mr. Wallace, referring to an “environment that remained difficult”.
Concerning the current financial year, the group notably anticipates net growth in proforma sales between 1% and 4% – with a negative foreign exchange effect estimated at 1% – and in net profit per share on a comparable basis between 5 and 9%.
The group claims a global market share of 41.1% in toothpaste and 31.5% in toothbrushes.
In animal products, sold under the Hill’s brand, turnover was driven by the United States and Europe, benefiting from an increase in prices in a context of falling volumes.
But operating profit suffered from “much higher prices for raw materials and packaging materials” – a “modest” increase is planned for 2024 – and costs linked to its new production plant in Tonganoxie (Kansas) inaugurated in October .
Friday on the New York Stock Exchange, Colgate-Palmolive shares rose 2%, or US$1.61, to close at US$82.83.