Colgate disappoints as its revenue misses forecasts
COLGATE-PALMOLIVE posted weaker-than expected second-quarter sales and said it would take a bigger hit than expected from Venezuela’s currency devaluation.
Colgate’s net income in the second quarter rose to $603m (£386.6m), from $562m a year earlier.
Sales rose two per cent to $3.81bn, below the $3.94bn analysts had expected.
Organic sales, excluding foreign exchange, acquisitions and divestitures, increased 3.5 per cent.
That was far below the consensus seven per cent gain expected and the company’s implied six to eight per cent guidance.
Volume of goods sold was up three per cent and global pricing rose 0.5 per cent.
The company also said the full-year hit of a currency devaluation in Venezuela would be 10 to 15 cents a share, up from its previous estimate of six to 10 cents.