Jan 31 (Reuters) - Toothpaste maker Colgate-Palmolive ( CL )

forecast annual sales below Wall Street expectations

after missing quarterly sales estimates on Friday, hurt by weak

demand in North America and Latin America for its household

products.

WHY IT'S IMPORTANT?

The company has seen its organic sales growth slow this year

due to repeated price hikes which deterred consumer spending on

its daily essential products such as toothpaste as well as pet

nutrition.

Consumers have been switching to cheaper private label

brands to limit expenses amid lingering inflationary concerns.

CONTEXT

Colgate-Palmolive ( CL ) has had to ramp up product innovation and

investments in advertising and marketing to contend with

heightened competition.

The company has also been battling lower sales in Latin

America, which includes regions such as Argentina, Mexico and

Brazil, hurt by an uncertain economy.

Peers Procter & Gamble ( PG ) and Kimberly-Clark ( KMB ), on

the other hand, saw a rise in sales driven by recovery in

demand.

KEY QUOTE

"Our (sales) guidance includes the impact of the planned

exit from private label pet nutrition over the course of 2025,"

said Colgate-Palmolive ( CL ) CEO Noel Wallace.

On potential tariffs under President Donald Trump, the

company said it will work to assess and mitigate any impact

where possible.

MARKET REACTION

Shares of the New York-based company, which rose about 14%

in 2024, fell about 2% in premarket trading.

BY THE NUMBERS

The company projects annual sales growth to be flat,

compared with analysts' estimates of a 1.3% rise as per data

compiled by LSEG.

The company posted net sales of $4.94 billion for the fourth

quarter, compared with analysts' average estimate of $4.97

billion.

Its overall prices rose 1.8%, while volume was up 2.5% in

the quarter ended Dec. 31.

The company's net sales in Latin America, a major revenue

contributing region, fell 7.2% and dropped 1% in North America.

On an adjusted basis, its profit of 91 cents per share beat

estimates of 89 cents.