(Reuters) - Colgate-Palmolive (NYSE:CL) on Friday forecast fiscal 2024 sales below estimates, as higher prices of its oral and personal care products continue to weigh on volumes.
The toothpaste maker expects annual sales growth to be between 1% and 4%, the midpoint of which is below analysts' average estimates of a 3.55% growth. In 2023, Colgate logged sales growth of 8.5%.
Other consumer product makers like Procter & Gamble (NYSE:PG) and Kimberly-Clark (NYSE:KMB) had also flagged softer volumes earlier this week as customers continued to digest higher product prices.
For Colgate, fourth-quarter organic volumes were flat, broadly similar to the previous quarter, although improving from a 4% dip last year.
The New York-based company said volumes, which have been under pressure in the past few quarters, are expected to recover somewhat through the year.
However, the company sneaked past Wall Street expectations for fourth-quarter sales and profit, driven by strong demand coming out of Latin America and Europe and recovering volumes in North America.
Net sales rose to $4.95 billion, beating LSEG estimates of $4.90 billion.
On an adjusted basis, the company posted a profit of 87 cents per share, topping estimates of 85 cents per share.
Sales at the company's Hill's Pet Nutrition business, which made up a quarter of the company's sales in 2023, were up 5% compared to a 20% rise in 2022.
RBC analyst Nik Modi said the performance of the pet category was " increasingly concerning" amid consumer pressure and competition from specialty pet retailers.
Shares of the company were up 1% in premarket trading on Friday.