Colgate faces risks from the war in Ukraine (supply chain disruptions, raw material cost increases, cash repatriation challenges), the war in the Middle East (similar supply chain and logistics issues), heightened competition (aggressive pricing, promotional spending), evolving retail landscape (eCommerce growth, changing consumer preferences), and potential legal proceedings (talcum powder lawsuits, ERISA litigation, Brazilian tax disputes). Geopolitical uncertainty and inflation are also significant risks.
Financial Upside
Colgate experienced net sales growth in Q3 2024 (volume and price increases), and organic sales growth of 6.8%. Gross profit margin increased to 61.1% in Q3 2024. Operating profit increased 4% in Q3 2024, and net income increased to $737 million. The company expects continued organic sales growth and margin expansion through innovation, higher-growth categories, and efficiency improvements.
