Palmolive Considers Selling Brands Worth Over $1 Billion

Colgate-Palmolive (CL) is considering selling mass-market personal care brands, including Softsoap and Speed Stick, for over $1 billion. The company aims to streamline its portfolio, focusing on higher-margin categories like Hill’s Pet Nutrition and international markets. Q2 2026 net sales rose 4.9% to $5.36 billion, with operating cash flow at $1.74 billion. Proceeds could reduce debt and optimize capital structure, but divestments may impact short-term revenue and earnings predictability.

Piper Sandler reduced its price target for Colgate-Palmolive (CL) to $95 from $98, citing cost pressures from elevated oil prices and inventory headwinds. The firm maintained an Overweight rating and a 2026 EPS estimate of $3.85, but lowered its 2027 EPS estimate to $4.12 from $4.23. CL trades at $87.47 with a P/E ratio of 34.6 and a gross profit margin of 60%. Other analysts have maintained positive outlooks, with RBC and UBS setting higher price targets.

Colgate-Palmolive (CL) is exploring the sale of brands like Softsoap, Irish Spring, and Speed Stick, potentially fetching over $1 billion. The company is working with Goldman Sachs (GS) on the divestiture. Personal care accounted for 17% of CL's 2025 net sales, which totaled $20.38 billion. The move is part of a broader productivity and restructuring program aimed at generating annual pre-tax savings of $200 million to $300 million by 2028.

Altria (MO) paid $6.96B in dividends against $6.95B in net income for FY2025, raising concerns about its dividend safety. Colgate-Palmolive (CL) covers its dividend with earnings and cash flow, but reported a Q4 loss. Altria's 10-year total return was 123%, outperforming Colgate's 55%.

Colgate-Palmolive is reportedly considering the sale of select mass-market personal care brands, including Softsoap, Irish Spring, and Speed Stick, for over $1 billion. The company is working with Goldman Sachs on the potential divestment to focus on higher-margin businesses amid North American competition. Personal care accounted for 17% of its 2025 net sales of $20.38 billion.

Colgate-Palmolive (CL) is reportedly exploring the sale of non-core personal care brands, valued at over $1 billion, with Goldman Sachs' advisory. The move aims to reallocate capital toward higher-growth segments. CL shares are down 12% year-to-date, trading below major moving averages, but offer a 2.44% dividend yield. Institutional investors remain bullish, and the consensus rating is 'Moderate Buy' with a mean price target of $160.