Colgate-Palmolive Co. (CL) - Get Report posted stronger-than-expected second quarter earnings Friday as cleaning product sales during the peak of the coronavirus pandemic boosted the brand giant's top and bottom lines.
Colgate said profits for the three months ending in June were pegged at 74 cents per share, up 2.8% from the same period last year and 4 cents ahead of the Street consensus forecast. Group revenues, Colgate said, rose 1% to $3.9 billion, again topping analysts' estimates of a $3.8 billion tally.
“While net sales growth was significantly impacted by foreign exchange, the 5.5% organic sales growth reflected a good balance of positive volume and higher pricing on a worldwide basis and was led by strong growth in North America and Hill’s," said CEO Noel Wallace.
“We continue to see elevated demand across our geographies in certain categories such as liquid hand soap, dish liquid, bar soap and cleaners," he added. "In other categories, we are starting to see the impact of consumers working down their pantry inventories, particularly in Europe."
Colgate-Palmolive shares were little-changed in early trading after the opening bell at $76.83 each.
Home cleaning supply sales were a big part of the stronger-than-expected fourth quarter earnings from rival Procter & Gamble PG yesterday, which were driven by a 14% rise in revenues from its fabric and home care division, which include cleaning products such as Comet, Joy, Febreze and Cascade.
Procter & Gamble said core profits for the three months ending in June, the group's fiscal fourth quarter, rose 5.5% to $1.16 per share on revenues of $17.7 billion.