Colgate-Palmolive yesterday reported a rise in an important sales metric, sending its shares up 6 per cent as investors shrugged off a lowered earnings forecast.

The consumer products maker, which controls nearly 45 per cent of the global toothpaste business, said fourth-quarter organic sales, which exclude the effects of foreign exchange, acquisitions and divestments, rose 6 per cent because of higher volumes and better pricing.

Chief executive officer Ian Cook said that sales volumes increased in all emerging markets despite the price hikes Colgate took to offset a strengthening dollar.

Mr Cook also said Colgate expected gross profit margins to increase by 50 to 100 basis points in 2015 as it benefits from lower prices for oil and other commodities.

- Reuters