Oct 25 (Reuters) - Toothpaste maker Colgate-Palmolive ( CL )

raised the lower end of its annual sales and profit

forecasts on Friday, after beating third-quarter estimates on

resilient demand for its high-priced products.

WHY IS IT IMPORTANT?

Consumers have been prioritizing spending on daily

essentials over discretionary items amid rising cost of living,

fueling sales for consumer packaged goods companies such as

Colgate-Palmolive ( CL ).

The company has seen increased demand for its oral care and

hygiene products, despite multiple price hikes.

CONTEXT

Consecutive price hikes, implemented to counter rising raw

materials and packaging costs, helped Colgate-Palmolive ( CL ) expand

profit margins by 260 basis points to 61.1% in the third

quarter.

The company's results were in contrast with that of peer

Kimberly-Clark ( KMB ), which trimmed its annual sales forecast

on Tuesday as consumers swapped its pricier personal care goods

for cheaper alternatives.

KEY QUOTE

"We expect continued strong advertising investment through

the remainder of the year as we focus on building brand health,"

Colgate-Palmolive ( CL ) CEO Noel Wallace said.

"We do have some concerns with the overall pet category

given consumer pressures as well as key specialty pet retailers

looking to provide consumers more value, although CL is better

insulated relative to peers and Hills continues to have

distribution upside," RBC analyst Nik Modi said.

BY THE NUMBERS

The company expects 2024 net sales growth between 3% and 5%,

compared with its prior view of 2% to 5%.

It forecasts an annual adjusted profit growth of 10% to 11%,

up from its previous expectations of 8% to 11%.

The company's prices rose 3.1% in the third quarter, while

its organic volumes grew 3.7%.

Colgate-Palmolive ( CL ) posted a quarterly adjusted profit of 91

cents per share, above analysts' average estimate of 89 cents,

according to data compiled by LSEG.

Its third-quarter net sales were $5.03 billion, compared

with estimates of $5 billion.