Colgate-Palmolive Company (CL), a leading consumer products maker, saw its stock plummet 5.71% in pre-market trading on Friday, January 31, 2025. The sharp decline came after the company reported its fourth quarter and full year 2024 results.
For the fourth quarter, Colgate-Palmolive reported net sales of $4.94 billion, down 0.12% from the same period a year earlier and missing analyst estimates of $4.98 billion. While adjusted earnings per share of $0.91 beat expectations, the company's full year 2025 sales forecast disappointed investors.
Colgate-Palmolive projected flat net sales for 2025, citing a mid-single-digit negative impact from foreign exchange. Organic sales growth, excluding currency effects, was expected to be within the company's long-term targeted range of 3% to 5%. However, this growth outlook was dampened by the planned exit from private label pet nutrition over the course of 2025.
The company's cautious sales forecast for 2025 was a major factor behind the stock selloff. Investors were concerned about the potential slowdown in demand for Colgate-Palmolive's household products, particularly in North America and Latin America, where sales declined in the fourth quarter.
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