Colgate-Palmolive has raised its forecast for annual organic sales growth after it reported a strong first-quarter performance on Friday.
The toothpaste maker banked on resilient demand for its high-priced self-care and pet nutrition products.
The increase came after the company adjusted its forecast to below analyst expectations in January as price hikes impacted sales volumes.
Demand for the company’s products held strong despite price hikes as consumers stretched their budgets to purchase daily essentials.
Larger peers Procter & Gamble and Kimberly-Clark also reported a rise in sales earlier this month thanks to strong consumer demand.
The news came the day after Swedish hygiene products company Essity published first quarter results also above analysts’ expectations.
Colgate-Palmolive now expects full-year organic sales growth to reach 5% to 7%, above its previous forecast of 3% to 5%.
The benefits of price hikes along with easing costs of materials has helped the company expand margins by 310 basis points to 60%.
The Palmolive shower gel maker’s prices rose by 8.5% in the first quarter. Organic sales volumes were up 1.3% in the same period, recovering from a 2% dip last year.
Colgate-Palmolive posted net sales of $5.07 billion for the quarter ending 31 March.
This is above analysts’ average estimate of $4.96 billion, according to data from the London Stock Exchange Group.
On an adjusted basis, it earned 86c per share, surpassing estimates of 81c per share.
Shares for the firm, which are up 12% so far this year, rose 3% in premarket trading.
Read More: Colgate-Palmolive Forecast Sales Below Estimate In 2024
