What’s behind Colgate-Palmolive’s Sluggish Margins?

Colgate-Palmolive’s (CL) profit margins were subdued in the second quarter of 2018 as input cost headwinds outweighed cost savings. CPG (consumer packaged goods) companies such as Colgate-Palmolive, Procter & Gamble (PG), and Kimberly-Clark (KMB), and Clorox (CLX) are seeing their margins impacted by continued inflation in packaging and raw material costs. Higher freight and logistics costs were also a drag. To make matters worse, increased competition, a tough retail environment, and low category inflation impacted pricing, and in turn, gross margins.