Colgate Beats Estimates but Warns of Middle East Costs
Colgate-Palmolive beat quarterly expectations but warned of a 300 million dollar cost hit from the Middle East conflict. Shares rose 3 percent in early trading.
COLGATE-PALMOLIVE CO expects $300 million in higher raw material and logistics costs this year due to conflict in the Middle East. Shares rose 3% in midday trading after the company beat first-quarter sales and profit estimates on May 1. Rising commodity prices and supply chain disruptions threaten margins as the United States and Iran conflict persists.
Colgate reported quarterly net sales of $5.32 billion, beating LSEG estimates of $5.22 billion. Adjusted EPS reached 97 cents, exceeding analyst expectations by 2 cents. The company joins UNILEVER PLC and PROCTER & GAMBLE CO/THE in flagging cost pressures from regional instability.
