Colgate Earnings: An Uncertain Economic Backdrop Not Enough to Derail Prudent Brand Investments

Concerns abound around the financial health of the consumer and ultimately their willingness to pay up for the essential goods that make up Colgate's portfolio. But if third-quarter marks are a guide, we think recent resilience is still holding, with organic sales up 9% in the quarter (on top of 7% growth a year ago). In its largest market, Latin America, where Colgate derives nearly one fourth of its total sales, this was particularly striking, with organic sales up 15%, driven by a 9.5% jump in prices and a 5.5% increase in volumes.