Colgate-Palmolive Cuts Earnings Outlook on TariffsUpdate

By Katherine Hamilton

Colgate-Palmolive posted a higher profit in the first quarter but lowered 2025 earnings guidance due to tariffs.

The maker of Ajax and Softsoap on Friday posted a profit of $690 million, or 85 cents a share, in the three months ended March 31, compared with $683 million, or 83 cents a share, a year earlier.

Revenue fell 3% to $4.91 billion. Analysts surveyed by FactSet forecast revenue of $4.87 billion.

The New York consumer-products maker lowered its full-year guidance based on current spot rates and an estimated impact from tariffs, it said. It now expects earnings to be in the low-single digits, compared with previous guidance in January that earnings per share would have mid-single-digit growth.

Colgate-Palmolive also lowered its 2025 guidance on organic sales growth to 2% to 4%, down from the prior range of 3% to 5%. Gross profit margin is now estimated to be roughly flat as a percentage of sales, while it was previously set to be flat or slightly up.

Sales are anticipated to be up in the low-single digits, with a smaller impact from foreign exchange than previously expected. The company previously said annual sales would be flat.

"As we look ahead, uncertainty and volatility in global markets, including the impact of tariffs, remain challenging," Chief Executive Noel Wallace said.

Europe was the only region where Colgate-Palmolive said it saw sales growth in the quarter, up 2.5%. Latin America and Asia Pacific were down 8.7% and 5%, respectively, while North America sales dropped 3.6%. The company's Hill's products outperformed the rest of its consumer offerings, with sales rising 1.5% compared with a 4.3% decline across the other goods.

Write to Katherine Hamilton at katherine.hamilton@wsj.com