Colgate-Palmolive Company (CL) stock is lower today after the company announced financial results for the fourth quarter and full year of 2021.
Colgate recorded revenue of $4.4 billion for the fourth quarter, a 2% year-over-year increase, and diluted EPS of $0.79, a 3% increase from last year.
Full year revenue came in at $17.4 billion, a 6% jump year-over-year, while diluted EPS was $3.21, a 5% increase.
Colgate manufactures shampoos, shower gels, deodorants, and home care products. It also owns specialty pet food maker Hill's, which sells its products through veterinarians and specialty pet retailers.
Rise in Pet Care Sales
Speaking on the quarterly results, Noel Wallace, Chairman, President and CEO, commented, “We were pleased to finish 2021 with a continuation of our strong growth momentum, particularly in our oral care and pet nutrition businesses, both of which delivered an acceleration in net and organic sales growth in full year 2021 versus 2020."
"We have delivered organic sales growth at or above our targeted range of 3% to 5% for three consecutive years, which gives us confidence that our investments behind our strategic priorities are delivering sustainable, profitable growth."
Hill's pet food division was the only one to experience double digit growth in the fourth quarter, jumping 12% year-over-year.
Sales growth for the sector was highest in the United States and Europe, with the company attributing much of the revenue increase to higher pricing, cost savings from Colgate's funding-the-growth initiatives, and decreased advertising investment
Looking Ahead
Despite the promising trends in certain sectors, Wallace urged caution in 2022 and stated that supply chain pressure could continue into the new year.
Wallace continued, "There is still much uncertainty stemming from the COVID-19 pandemic, supply chain disruptions, increases in raw material and logistics costs and volatility in consumer demand and currencies."
"With costs expected to remain elevated in 2022, our funding the growth and revenue growth management initiatives, including higher pricing, will be more important than ever"
