Colgate expects higher prices in 2022, launches initiative to drive savings

Colgate-Palmolive Co. CL,
reported net income of $148 million, or 18 cents per share, in the fourth quarter, compared with $647 million, or 75 cents per share, a year ago. Adjusted EPS of 79 cents was in line with the FactSet consensus. Sales of $4.403 billion were down from $4.324 billion last year and narrowly missed the FactSet consensus of $4.417 billion. “With costs expected to remain elevated in 2022, our funding of growth management and revenue growth initiatives, including higher pricing, will be more important than ever,” said Colgate Chief Executive Noel. Wallace, in a statement. Colgate took a charge of $518 million in the fourth quarter “to adjust the carrying values ​​of goodwill and a trade name intangible asset related to Filorga’s skin health business,” the company said. And Colgate announced the 2022 Global Productivity Initiative, which is expected to result in pretax expenses of $200 million to $240 million and annualized pretax savings of $90 million to $110 million. For the full year, Colgate expects sales growth of 1% to 4%. The FactSet consensus is for sales of $17.944 billion, suggesting growth of 3%. Colgate stock slid 0.4% on Friday before market, but was up 4.5% from a year ago. The S&P 500 SPX index,
is up 14.2% over the last 12 months.