NEW YORK CITY, New York: Colgate-Palmolive posted stronger-than-expected quarterly results and raised its annual sales outlook last week, fueled by steady demand for its oral and personal care products despite ongoing cost pressures from tariffs and higher marketing expenses.

The consumer goods giant said it plans to continue implementing moderate price hikes to protect its profit margins, even as it ramps up advertising and marketing efforts. Like its industry peers, Colgate has been navigating higher input costs and tariffs, including levies on raw materials and toothpaste imports from Mexico to the U.S.

Tariffs are projected to push up Colgate's cost of goods sold by about US$200 million in 2025, following fresh duties announced by the U.S. and China. Other consumer product companies, including Procter & Gamble and Kimberly-Clark, have also flagged pressure on annual profits due to tariff uncertainty.

"As we look ahead, uncertainty and volatility in global markets, including the impact of tariffs, remain challenging," CEO Noel Wallace said.

Despite these headwinds, Colgate raised its forecast for annual organic sales growth, now expecting an increase between two percent and four percent, compared with its previous guidance of three percent to five percent. Factoring in the estimated impact of tariffs, the company projects low-single-digit percentage growth for overall annual sales, up from its earlier expectation of flat sales.

In the first quarter, which ended March 31, Colgate's total organic sales rose by 1.4 percent, supported by a 1.5 percent rise in prices. On an adjusted basis, the company earned 91 cents per share, beating Wall Street's average estimate of 86 cents, according to LSEG data. Net sales came in at $4.91 billion, ahead of analysts' expectations of $4.87 billion.

Colgate also reported a rise in gross profit margin, which expanded by 80 basis points to 60.8 percent in the quarter.

Following the earnings release, Colgate shares edged up about one percent to $94.20 in premarket trading.