Shares in Colgate-Palmolive Company slumped in pre-market trade after the consumer goods giant missed first-quarter revenue forecasts due to sluggish sales across emerging markets.
The group’s earnings for the first quarter jumped to US$634mn, or US$0.72 per share, up from US$570mn, or US$0.64 per share. Its revenue, meanwhile, climbed to US$4bn, up from US$3.762bn last year, but falling short of analysts’ estimates of US$4.02bn.
Excluding items, Colgate-Palmolive reported adjusted earnings of US$654mn, or US$0.74 per share.
In pre-market trade, Colgate Palmolive shares shed 2.76% to trade at US$64.75.
In a statement, Ian Cook, Colgate’s chairman, president and chief executive, described growth as “soft in many markets around the world.”
“The first quarter was challenging,” he said. “While net sales grew 6.5%, organic sales grew 1.5% below our expectations, due to flat unit volume growth in emerging markets.”
Colgate’s sales from its worldwide oral and personal care unit missed estimates, coming in at US$3.41bn against Wall Street’s estimate of US$3.443bn.
In the US, Colgate managed to hold onto its 35.2% market share grip of the toothpaste market, with products like Colgate Optic White Stain Fighter, Colgate Sensitive Smart White and Tom’s of Maine.
Latin America is Colgate’s biggest market as it provides 23% of its sales while Europe makes up 16% sales; and Asia-Pacific comprises 19%. North America accounts for the bulk of the rest of its sales.