Colgate-Palmolive’s first-quarter 2025 results demonstrated the resilience of its beauty, health, well-being, and personal care segments, even as macroeconomic uncertainty and inflationary pressures persist. The company, which owns Elta MD, Sanex, and Laboratories Filorga, reported an organic sales increase of 1.4% for the quarter.
Although total net sales decreased 3.1% to $4.1 billion, outcomes still beat Wall Street’s prior predictions of $4.87 billion, evidencing underlying strength in core categories.
“Colgate-Palmolive people delivered another quarter of organic sales and earnings per share growth in the face of very difficult market conditions worldwide,” said Noel Wallace, Chairman, President, and CEO of Colgate-Palmolive in a company press release. “The positive organic sales growth, in a period of slowing category growth in many markets, is a testament to the strength of our brands and our commitment to executing against our strategy.”
International Momentum
Despite top-line pressures, Colgate-Palmolive posted strong gains internationally. European and South Pacific sales increased by 13%, driven by 4.5% growth in unit volume. Notable key markets included France, Germany, Spain, and Australia, where share gains were reported, fueled by products including Palmolive Pure Cashmere, Colgate Time Control, and Colgate Sensitive Multi Protection toothpastes.
Momentum was also strong in Greater Asia and Africa, where sales increased 13.5% and unit volumes grew by 9%. Products such as Colgate Max Fresh Green Tea and Colgate Total Propolis toothpastes solidified the company's leadership in oral care while expanding the conglomerate's presence in wellness-focused personal care.
North America Struggles
North America failed to follow the footsteps of the aforementioned regions, as net sales reportedly declined 3.6% due to inflation and tightened consumer spending, leading to softer demand in nonessential categories. Regardless of the headwinds, Colgate-Palmolive reinforced its commitment to innovation and brand-building.
“We came into 2025 prepared for the volatility and uncertainty as such. We built flexibility into our plans, knowing that this year would be more difficult than the years that preceded it,” Wallace said in a company press release.
The company’s flexibility was critical in helping Colgate deliver year-over-year (YoY) growth in operating profit, net income, and earnings per share, even in a volatile environment. “Our focus on building flexibility into our P&L enabled us to deliver YoY growth in operating profit, net income, and earnings per share despite the volatile operating environment,” Wallace continued.
Innovation, Pricing, and Strategic Execution
Innovating products played a central part in Colgate-Palmolive’s growth. The relaunch of Colgate Total with a new formula supported the company’s leadership in the toothpaste sector, where it holds a 41.6% global market share. The conglomerate also introduced Visible White Whitening Booster Gel in India, a “first-of-its-kind” offering in the teeth whitening sector.
In the personal care category, Palmolive moved into premium positioning by delivering richer sensory experiences and functional skincare benefits, bolstered by new launches across Europe and Latin America under the Palmolive and Protex brands.
Alongside continuing its innovation, the company unveiled plans to raise prices in 2025 to offset external pressures. Trump’s tariffs are expected to add approximately $200 million to Colgate-Palmolive’s cost of goods sold this year, while raw and packaging material costs are also anticipated to increase “modestly.”
“As we look ahead, uncertainty and volatility in global markets, including the impact of tariffs, remain challenging,” Wallace said during the earnings call.
Wallace confirmed the conglomerate has raised its full-year outlook for 2025 following stronger-than-expected results, a parallel to competitors such as P&G (predicting flat versus fiscal 2024) and LVMH (with missed analyst expectations), which lowered their full-year outlook. “We are confident in our strategy and will continue to execute with focus and agility to mitigate these factors and achieve our revised 2025 financial targets,” Wallace added.
Colgate-Palmolive now expects net sales to grow by low single digits in 2025, including a low single-digit negative impact from foreign exchange. However, organic sales growth expectations have been slightly lowered to 2% to 4%, down from the earlier forecast of 3% to 5%. The company also slightly lowered its earnings per share (EPS) growth forecast, down from the earlier projection of mid-single-digit growth to low-single-digit growth.
Colgate-Palmolive’s results highlight the importance of innovation, premiumization, and operational flexibility. As beauty, well-being, and personal care evolve under economic and geopolitical pressures, increased brand investment and a honed focus on premium experiences position the company to navigate ongoing volatility while staying aligned with emerging consumer preferences globally.
