Colgate-Palmolive increases its sales growth goal following impressive Q1 performance

Colgate-Palmolive, a toothpaste manufacturer, increased its prediction for annual growth in organic sales on Friday, citing strong demand for its pricy pet nutrition and self-care products.

Pet food and personal care goods from Colgate-Palmolive were in high demand as consumers stretched their budgets to buy necessities.

Due to high customer demand, major competitors Procter & Gamble and Kimberly-Clark also witnessed increases in sales earlier this month.

After initially predicting growth of 3% to 5%, Colgate-Palmolive now projects full-year organic sales growth in the range of 5% to 7%.

Increases in prices as well as lower expenses for packaging and raw materials allowed the company to increase its margins by 310 basis points to 60%.

Prices for the Palmolive shower gel maker increased by 8.5% in the first quarter, although sales of organic products increased by 1.3%, recovering from a 2% decline in sales the previous year.

According to LSEG statistics, the company reported net revenues of $5.07 billion for the quarter that ended on March 31, which was higher than the $4.96 billion average expectation of analysts.

It made 86 cents per share on an adjusted basis, exceeding analysts’ prediction of 81 cents per share.

In premarket trade, the consumer products and home furnishings company’s shares, up 12% so far this year, increased by 3%.