Benzinga | Oct 29, 2021 01:10PM EDT

Colgate-Palmolive Q3 Earnings Top Estimates, Affirms FY21 Outlook

* Colgate-Palmolive Co (NYSE:CL) reported third-quarter FY21 sales growth of 6.3% year-on-year, to $4.41 billion, beating the analyst consensus of $4.40 billion.

* Organic sales increased 4.5%, driven by volume growth and higher pricing. Total Oral, Personal, and Home Care net sales improved 3.5% to $3.6 billion.

* Non-GAAP EPS of $0.81 beat the analyst consensus of $0.79.

* Gross profit increased 3.2% Y/Y to $2.6 billion, while the margin contracted 180 basis points to 59.4%.

* Selling, general and administrative expenses rose 7.8% Y/Y to $1.6 billion.

* The operating margin contracted 260 basis points to 21.9%, and operating income for the quarter rose 5% to $967 million.

* The company held $958 million in cash and equivalents as of September 30, 2021. Net cash provided by operations was $2.2 billion for the nine months. The company's total debt amounted to $7.69 billion.

* "We expect the difficult cost environment to continue for the next several quarters and we remain sharply focused on our funding the growth and revenue growth management initiatives, including additional pricing," said Chairman, President, and CEO Noel Wallace.

* Outlook: Colgate backed its FY21 sales growth outlook of 4%-7% and organic sales growth within its long-term targeted 3%-5%.

* On a non-GAAP basis, it sees a decline in gross profit margin, increased advertising investment, and EPS growth at the lower end of its mid to high-single-digit range.

* Price Action: CL shares are trading lower by 0.17% at $76.45 on the last check Friday.