Why Colgate-Palmolive (CL) Shares Are Falling Today - Colgate-Palmolive (NYSE:CL)

Colgate-Palmolive Co CL reported fourth-quarter FY22 sales growth of 5% year-on-year to $4.629 billion, beating the consensus of $4.59 billion.
Organic sales increased by 8.5%. Total Oral, Personal, and Home Care net sales increased by 1.4% to $3.6 billion.
Non-GAAP EPS of $0.77 beat the analyst consensus of $0.76.
During Q4, the company took a non-cash, after-tax charge of $620 million to adjust the carrying values of goodwill and intangible assets related to the Filorga skin health business.
Gross profit was $2.57 billion, while the margin contracted 250 basis points to 55.6%.
Selling, general and administrative expenses rose 2.1% to $1.6 billion.
Operating margin contracted 390 basis points to 4.4%, and operating income for the quarter fell 44.6% to $202 million.
The company held $775 million in cash and equivalents as of Dec. 31, 2022. Net cash provided by operations was $2.55 billion for 2022.
"We are also strengthening and scaling our digital, data analytics, innovation and other capabilities across the company," said Chairman, President, and CEO Noel Wallace.
Outlook: Colgate sees FY23 organic sales growth of 2% - 5%.
The company expects organic sales growth to be towards the high end of its long-term targeted range of 3% to 5%.
On a non-GAAP basis, the company expects gross profit margin expansion, increased advertising investment, and low to mid-single-digit EPS growth.
Price Action: CL shares are trading lower by 3.22% at $73.10 in premarket on the last check Friday.

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Colgate-Palmolive Beats On Q4; Notes Margin Pressure