(Bloomberg) -- Colgate-Palmolive Co. slid in early trading after cutting its outlook for full-year earnings and saying it expects gross margin to decline amid faster-than-expected inflation.

The oral-care giant said on Friday that it now expects a mid-single-digit decline in earnings per share, excluding some items, in 2022. The company had said in January that it was looking for low- to mid-single digit growth. Gross profit margin is also now expected to decline this year.

Peers have warned in recent earnings reports that inflation was higher than initially expected, and Colgate was no exception. The company said it would incur an additional $650 million in raw material and logistics costs this year, mostly driven by the spike in oil prices due to the war in Ukraine and the subsequent jump in other commodities. Overall, the company expects raw materials costs to be up 22% for the year.

“Our profitability was impacted by significant increases in raw material and logistics costs worldwide, and we expect the difficult cost environment to continue for the next several quarters,” Chief Executive Officer Noel Wallace said in a statement.

The shares fell 4% at 8:32 a.m. in New York trading. The stock had declined 4.8% so far this year, compared with a 10% drop in the S&P 500 Index.

Colgate is combating rising costs with higher prices, productivity measures and product upgrades, which led it to raise its full-year organic revenue growth estimate to 4% to 6%. Its earlier projection for the metric, which excludes some items, was 3% to 5%. The average analyst estimate was 4.2%.

Price hikes in nearly every region propelled organic revenue up 4% in the first quarter, surpassing the 3.5% average analyst estimate compiled by Bloomberg. But the volume of products sold declined 1.5% amid supply-chain disruptions and pandemic-related factory closures in Asia.

Earnings per share excluding some items were 74 cents, falling short of the 75-cent estimate.

Colgate’s results and outlook were worse than feared despite caution heading into the report, Barclays analyst Lauren Lieberman wrote in a research note.

(Updates with breakdown of costs in third paragraph, volume in sixth, analyst comment in eighth.)

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