Q2 Performance and Targets: Colgate-Palmolive reported strong Q2 results with net sales and organic sales growth of 2.4%, despite facing challenges from raw material pressures and negative foreign exchange impacts. The company anticipates low single-digit EPS growth for FY 2025, built on resilient strategic execution and pricing strategies.
Pricing Strategies and Consumer Behavior: The company is adjusting pricing strategies to cater to cautious consumer behavior, particularly in North America and Brazil, where food prices have affected consumer spending. By leveraging innovation in packaging (size and multipacks), Colgate aims to deliver perceived consumer value and drive organic sales growth.
Challenges in Emerging Markets: Colgate mentioned a decline in household product categories in North America, with expectations of recovery in the latter half of 2025. In Latin America, particularly Mexico and Brazil, there is a cautious consumer environment, which led to an overall slowing category growth but still decent returns from core innovations and brand strength.