Colgate Announces 2nd Quarter 2024 Results

Colgate-Palmolive Company (NYSE:CL):

  • Net sales increased 4.9%; Organic sales* increased 9.0%
  • GAAP EPS increased 48% to $0.89; Base Business EPS* increased 18% to $0.91
  • GAAP Gross profit margin increased 280 basis points to 60.6%; Base Business Gross profit margin* increased 300 basis points to 60.8%
  • Net cash provided by operations was $1,671 million for the first six months of 2024
  • Colgate’s leadership in toothpaste continued with its global market share at 41.5% year to date
  • Colgate’s leadership in manual toothbrushes continued with its global market share at 32.2% year to date
  • The Company updated its financial guidance for full year 2024

Second Quarter Total Company Results (GAAP)

($ in millions except per share amounts)

2024

2023

Change

Net Sales

$5,058

$4,822

+4.9%

EPS (diluted)

$0.89

$0.60

+48%

 

 

 

 

 

 

 

 

Second Quarter Total Company Results (Base Business - Non-GAAP)*

 

2024

2023

Change

Organic Sales Growth

+9.0%

Base Business EPS (diluted)

$0.91

$0.77

+18%

*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 6 - Geographic Sales Analysis Percentage Changes” and “Table 8 - Non-GAAP Reconciliations” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Colgate-Palmolive Company (NYSE:CL) today reported results for second quarter 2024. Noel Wallace, Chairman, President and Chief Executive Officer, commented on the Base Business second quarter results, “We are very pleased to have delivered another quarter of strong top and bottom line results. Net sales increased 4.9% and organic sales grew 9.0% (on top of 8.2% organic sales growth in the year ago quarter) driven by a healthy balance of accelerated volume growth and higher pricing. We are particularly pleased that every operating division delivered positive volume growth in the quarter, as we look to increase brand penetration to drive category growth.

“This is our fourth consecutive quarter delivering gross margin expansion and double-digit growth in operating profit, net income and earnings per share. This combination of sales growth and operating leverage allowed us to continue to invest for the long-term health of our business, with an 18% increase in advertising in the quarter. The strong levels of investment should continue in the balance of the year as we focus on building brand health and scaling the capabilities needed to drive growth in both the short and long term.

“Our strong results this quarter and in the first half of the year add to our confidence that we are executing the right strategies to deliver on our increased 2024 organic sales and Base Business earnings growth expectations, drive cash flow and generate consistent, compounded earnings per share growth.”

Full Year 2024 Guidance

Based on current spot rates:

  • The Company still expects net sales growth of 2% to 5% including a mid-single-digit negative impact from foreign exchange.
  • The Company is raising its organic sales growth guidance to 6% to 8% (versus 5% to 7% previously).
  • On a GAAP basis, the Company still expects gross profit margin expansion, increased advertising investment and double-digit earnings per share growth.
  • On a non-GAAP (Base Business) basis, the Company still expects gross profit margin expansion and increased advertising investment and increased its earnings per share growth guidance to 8% to 11% (versus mid to high-single-digit previously).

Divisional Performance

See attached "Table 6 - Geographic Sales Analysis Percentage Changes" and "Table 5 - Segment Information" for additional information on net sales and operating profit by division.

Second Quarter Sales Growth By Division

(% change 2Q 2024 vs. 2Q 2023 except % of Total Company Sales)

 

% of Total

Company

Sales

Net

Sales

Organic

Sales*

As

Reported

Volume

Organic

Volume

Pricing

FX

North America

20%

+2.5%

+2.5%

+5.9%

+5.9%

-3.3%

-0.1%

Latin America

25%

+7.6%

+18.8%

+5.5%

+5.5%

+13.3%

-11.2%

Europe

14%

+6.2%

+6.5%

+5.2%

+5.2%

+1.3%

-0.2%

Asia Pacific

14%

+2.6%

+5.1%

+3.4%

+3.4%

+1.7%

-2.5%

Africa/Eurasia

5%

+2.2%

+16.4%

+8.4%

+8.4%

+8.0%

-14.3%

Hill’s

22%

+5.5%

+6.1%

+2.5%

+2.5%

+3.7%

-0.7%

 

 

 

 

 

 

 

 

Total Company

100%

+4.9%

+9.0%

+4.7%

+4.7%

+4.2%

-4.1%

Note: Table may not sum due to rounding.

 

*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 6 - Geographic Sales Analysis Percentage Changes” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Second Quarter Operating Profit By Division

($ in millions)

 

 

2Q 2024

% Change vs

2Q 2023

% to Net

Sales

Change in basis

points vs 2Q 2023

% to Net Sales

North America

$223

-2%

22.3%

-90

Latin America

$417

15%

32.9%

+210

Europe

$159

19%

22.1%

+230

Asia Pacific

$195

16%

28.7%

+320

Africa/Eurasia

$64

4%

23.4%

+30

Hill’s

$235

23%

21.1%

+300

 

 

 

 

 

Total Company, As Reported

$1,092

12%

21.6%

+140

Total Company, Base Business*

$1,118

13%

22.1%

+150

*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 8 - Non-GAAP Reconciliations” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Prepared Materials and Webcast Information

At approximately 7:00 a.m. ET today, Colgate will post its prepared materials (in PDF format) regarding second quarter results to the Investor Center section of its website at https://investor.colgatepalmolive.com/events-and-presentations.

At 8:30 a.m. ET today, Colgate will host a conference call regarding second quarter results. To access this call as a webcast, please go to Colgate’s website at www.colgatepalmolive.com.

About Colgate-Palmolive

Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, we sell our products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. The Company is recognized for its leadership and innovation in promoting sustainability and community wellbeing, including its achievements in decreasing plastic waste and promoting recyclability, saving water, conserving natural resources and improving children’s oral health through the Colgate Bright Smiles, Bright Futures program, which has reached approximately 1.7 billion children and their families since 1991. For more information about Colgate’s global business and how the Company is building a future to smile about, visit www.colgatepalmolive.com. CL-E

Market Share Information

Management uses market share information as a key indicator to monitor business health and performance. References to market share in this press release are based on a combination of consumption and market share data provided by third-party vendors, primarily Nielsen, and internal estimates. All market share references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company competes and purchases data (excluding Venezuela from all periods).

Market share data is subject to limitations on the availability of up-to-date information. In particular, market share data is currently not generally available for certain retail channels, such as eCommerce and certain club retailers and discounters. The Company measures year-to-date market shares from January 1 of the relevant year through the most recent period for which market share data is available, which typically reflects a lag time of one or two months. The Company believes that the third-party vendors it uses to provide data are reliable, but it has not verified the accuracy or completeness of the data or any assumptions underlying the data. In addition, market share information reported by the Company may be different from market share information reported by other companies due to differences in category definitions, the use of data from different countries, internal estimates and other factors.

Cautionary Statement on Forward-Looking Statements

This press release and the related webcast may contain forward-looking statements (as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission (SEC) in its rules, regulations and releases) that set forth anticipated results based on management’s current plans and assumptions. Such statements may relate, for example, to sales or volume growth, net selling price increases, organic sales growth, profit or profit margin levels, earnings per share levels, financial goals, the impact of foreign exchange, the impact of the war in Ukraine, the impact of the Israel-Hamas war, cost-reduction plans (including the 2022 Global Productivity Initiative), tax rates, interest rates, new product introductions, digital capabilities, commercial investment levels, acquisitions, divestitures, share repurchases or legal or tax proceedings, among other matters. These statements are made on the basis of the Company’s views and assumptions as of this time and the Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, except as required by law or by the rules and regulations of the SEC. Moreover, the Company does not, nor does any other person, assume responsibility for the accuracy and completeness of these statements. The Company cautions investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. For more information about factors that could impact the Company’s business and cause actual results to differ materially from forward-looking statements, investors should refer to the Company’s filings with the SEC (including, but not limited to, the information set forth under the captions “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent filings with the SEC). Copies of these filings may be obtained upon request from the Company’s Investor Relations Department or on the Company’s website at www.colgatepalmolive.com.

Non-GAAP Financial Measures

The following provides definitions and other information regarding the non-GAAP financial measures used in this press release and the related prepared materials and webcast, which may not be the same as or comparable to similar measures presented by other companies:

  • Base Business: Base Business refers to non-GAAP measures of operating results that exclude certain items. Base Business operating results exclude, as applicable, charges related to an ERISA litigation matter, a foreign tax matter, the 2022 Global Productivity Initiative and product recall costs.
  • Organic sales growth: Net sales growth excluding the impact of foreign exchange, acquisitions and divestments.
  • Free cash flow before dividends: Net cash provided by operations less Capital expenditures.

This press release discusses Net sales growth (GAAP) and Organic sales growth (non-GAAP). Management believes the organic sales growth measure provides investors and analysts with useful supplemental information regarding the Company’s underlying sales trends by presenting sales growth excluding the external factor of foreign exchange as well as the impact from acquisitions and divestments. See “Geographic Sales Analysis Percentage Changes” for the three and six months ended June 30, 2024 versus 2023 included with this release for a comparison of Organic sales growth to Net sales growth in accordance with GAAP.

Gross Profit, Gross Profit margin, Selling, general and administrative expenses, Selling, general and administrative expenses as a percentage of Net sales, Other (income) expense, net, Operating profit, Operating profit margin, Non-service related postretirement costs, Effective income tax rate, Net income attributable to Colgate-Palmolive Company and Diluted earnings per common share are disclosed on both an as reported (GAAP) and Base Business (non-GAAP) basis. These non-GAAP financial measures exclude items that, either by their nature or amount, management would not expect to occur as part of the Company’s normal business on a regular basis, such as restructuring charges, charges for certain litigation and tax matters, acquisition-related costs, gains and losses from certain divestitures and certain other unusual, non-recurring items. Investors and analysts use these financial measures in assessing the Company’s business performance, and management believes that presenting these financial measures on a non-GAAP basis provides them with useful supplemental information to enhance their understanding of the Company’s underlying business performance and trends. These non-GAAP financial measures also enhance the ability to compare period-to-period financial results. See “Non-GAAP Reconciliations” for the three and six months ended June 30, 2024 and 2023 included with this release for a reconciliation of these financial measures to the related GAAP measures.

The Company uses these financial measures internally in its budgeting process, to evaluate segment and overall operating performance and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company’s underlying business performance and trends, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.

As management uses free cash flow before dividends to evaluate the Company’s ability to satisfy current and future obligations, pay dividends, fund future business opportunities and repurchase stock, the Company believes that it provides useful information to investors. Free cash flow before dividends is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. See “Condensed Consolidated Statements of Cash Flows” for the six months ended June 30, 2024 and 2023 for a comparison of free cash flow before dividends to Net cash provided by operations as reported in accordance with GAAP.

(See attached tables for second quarter results.)

 

 

 

 

Table 1

Colgate-Palmolive Company

 

Condensed Consolidated Statements of Income

 

For the Three Months Ended June 30, 2024 and 2023

 

(Dollars in Millions Except Per Share Amounts) (Unaudited)

 

 

 

2024

 

2023

 

 

 

 

 

Net sales

 

$

5,058

 

 

$

4,822

 

 

 

 

 

 

Cost of sales

 

 

1,992

 

 

 

2,035

 

 

 

 

 

 

Gross profit

 

 

3,066

 

 

 

2,787

 

 

 

 

 

 

Gross profit margin

 

 

60.6

%

 

 

57.8

%

 

 

 

 

 

Selling, general and administrative expenses

 

 

1,939

 

 

 

1,768

 

 

 

 

 

 

Other (income) expense, net

 

 

35

 

 

 

45

 

 

 

 

 

 

Operating profit

 

 

1,092

 

 

 

974

 

 

 

 

 

 

Operating profit margin

 

 

21.6

%

 

 

20.2

%

 

 

 

 

 

Non-service related postretirement costs

 

 

22

 

 

 

29

 

 

 

 

 

 

Interest (income) expense, net

 

 

60

 

 

 

58

 

 

 

 

 

 

Income before income taxes

 

 

1,010

 

 

 

887

 

 

 

 

 

 

Provision for income taxes

 

 

243

 

 

 

353

 

 

 

 

 

 

Effective tax rate

 

 

24.1

%

 

 

39.8

%

 

 

 

 

 

Net income including noncontrolling interests

 

 

767

 

 

 

534

 

 

 

 

 

 

Less: Net income attributable to noncontrolling interests

 

 

36

 

 

 

32

 

 

 

 

 

 

Net income attributable to Colgate-Palmolive Company

 

$

731

 

 

$

502

 

 

 

 

 

 

Earnings per common share

 

 

 

 

Basic

 

$

0.89

 

 

$

0.61

 

Diluted

 

$

0.89

 

 

$

0.60

 

 

 

 

 

 

Supplemental Income Statement Information

 

 

 

 

Average common shares outstanding

 

 

 

 

Basic

 

 

819.7

 

 

 

829.4

 

Diluted

 

 

823.7

 

 

 

831.3

 

 

 

 

 

 

Advertising

 

$

706

 

 

$

601

 

 

 

 

 

Table 2

 

Colgate-Palmolive Company

 

 

 

Condensed Consolidated Statements of Income

 

 

 

For the Six Months Ended June 30, 2024 and 2023

 

 

 

(Dollars in Millions Except Per Share Amounts) (Unaudited)

 

 

 

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

Net sales

 

$

10,124

 

 

$

9,592

 

 

 

 

 

 

 

 

Cost of sales

 

 

4,019

 

 

 

4,093

 

 

 

 

 

 

 

 

Gross profit

 

 

6,105

 

 

 

5,499

 

 

 

 

 

 

 

 

Gross profit margin

 

 

60.3

%

 

 

57.3

%

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

3,855

 

 

 

3,526

 

 

 

 

 

 

 

 

Other (income) expense, net

 

 

111

 

 

 

90

 

 

 

 

 

 

 

 

Operating profit

 

 

2,139

 

 

 

1,883

 

 

 

 

 

 

 

 

Operating profit margin

 

 

21.1

%

 

 

19.6

%

 

 

 

 

 

 

 

Non-service related postretirement costs

 

 

44

 

 

 

323

 

 

 

 

 

 

 

 

Interest (income) expense, net

 

 

118

 

 

 

112

 

 

 

 

 

 

 

 

Income before income taxes

 

 

1,977

 

 

 

1,448

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

482

 

 

 

500

 

 

 

 

 

 

 

 

Effective tax rate

 

 

24.4

%

 

 

34.5

%

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

 

1,495

 

 

 

948

 

 

 

 

 

 

 

 

Less: Net income attributable to noncontrolling interests

 

 

81

 

 

 

74

 

 

 

 

 

 

 

 

Net income attributable to Colgate-Palmolive Company

 

$

1,414

 

 

$

874

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

Basic(1)

 

$

1.72

 

 

$

1.05

 

 

Diluted(1)

 

$

1.71

 

 

$

1.05

 

 

 

 

 

 

 

 

Supplemental Income Statement Information

 

 

 

 

 

Average common shares outstanding

 

 

 

 

 

Basic

 

 

821.3

 

 

 

830.4

 

 

Diluted

 

 

824.9

 

 

 

832.1

 

 

 

 

 

 

 

 

Advertising

 

$

1,378

 

 

$

1,180

 

 

Note:

(1) Basic and diluted earnings per share are computed independently for each quarter and any year-to-date period presented. As a result of changes in shares outstanding during the year and rounding, the sum of the quarters' earnings per share may not equal the earnings per share for any year-to-date period.

 

 

 

 

 

 

Table 3

Colgate-Palmolive Company

 

Condensed Consolidated Balance Sheets

 

As of June 30, 2024, December 31, 2023 and June 30, 2023

 

(Dollars in Millions) (Unaudited)

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

June 30,

 

 

2024

 

2023

 

2023

Cash and cash equivalents

 

$

1,110

 

 

$

966

 

 

$

819

 

Receivables, net

 

 

1,825

 

 

 

1,586

 

 

 

1,656

 

Inventories

 

 

1,922

 

 

 

1,934

 

 

 

2,039

 

Other current assets

 

 

789

 

 

 

793

 

 

 

923

 

Property, plant and equipment, net

 

 

4,392

 

 

 

4,582

 

 

 

4,431

 

Goodwill

 

 

3,320

 

 

 

3,410

 

 

 

3,373

 

Other intangible assets, net

 

 

1,814

 

 

 

1,887

 

 

 

1,901

 

Other assets

 

 

1,308

 

 

 

1,235

 

 

 

1,085

 

Total assets

 

$

16,480

 

 

$

16,393

 

 

$

16,227

 

 

 

 

 

 

 

 

Total debt

 

$

8,676

 

 

$

8,549

 

 

$

8,989

 

Other current liabilities

 

 

4,820

 

 

 

4,411

 

 

 

4,597

 

Other non-current liabilities

 

 

2,502

 

 

 

2,476

 

 

 

2,326

 

Total liabilities

 

 

15,998

 

 

 

15,436

 

 

 

15,912

 

Total Colgate-Palmolive Company shareholders’ equity

 

 

123

 

 

 

609

 

 

 

(64

)

Noncontrolling interests

 

 

359

 

 

 

348

 

 

 

379

 

Total liabilities and equity

 

$

16,480

 

 

$

16,393

 

 

$

16,227

 

 

 

 

 

 

 

 

Supplemental Balance Sheet Information

 

 

 

 

 

 

Debt less cash, cash equivalents and marketable securities(1)

 

$

7,341

 

 

$

7,404

 

 

$

7,903

 

Working capital % of sales

 

 

(2.5

)%

 

 

(1.4

)%

 

 

(1.3

)%

Note:

(1) Marketable securities of $225, $179 and $267 as of June 30, 2024, December 31, 2023 and June 30, 2023, respectively, are included in Other current assets.

Table 4

Colgate-Palmolive Company

 

Condensed Consolidated Statements of Cash Flows

 

For the Six Months Ended June 30, 2024 and 2023

 

(Dollars in Millions) (Unaudited)

 

 

 

 

 

 

 

2024

 

2023

Operating Activities

 

 

 

 

Net income including noncontrolling interests

 

$

1,495

 

 

$

948

 

Adjustments to reconcile Net income including noncontrolling interests to Net cash provided by operations:

 

 

Depreciation and amortization

 

 

307

 

 

 

273

 

ERISA litigation matter

 

 

 

 

 

267

 

Restructuring and termination benefits, net of cash

 

 

48

 

 

 

(8

)

Stock-based compensation expense

 

 

43

 

 

 

37

 

Deferred income taxes

 

 

(92

)

 

 

(156

)

Cash effects of changes in:

 

 

 

 

Receivables

 

 

(309

)

 

 

(112

)

Inventories

 

 

(17

)

 

 

54

 

Accounts payable and other accruals

 

 

194

 

 

 

153

 

Other non-current assets and liabilities

 

 

2

 

 

 

1

 

Net cash provided by (used in) operations

 

 

1,671

 

 

 

1,457

 

 

 

 

 

 

Investing Activities

 

 

 

 

Capital expenditures

 

 

(243

)

 

 

(347

)

Purchases of marketable securities and investments

 

 

(243

)

 

 

(225

)

Proceeds from sale of marketable securities and investments

 

 

178

 

 

 

146

 

Other investing activities

 

 

4

 

 

 

(12

)

Net cash provided by (used in) investing activities

 

 

(304

)

 

 

(438

)

 

 

 

 

 

Financing Activities

 

 

 

 

Short-term borrowing (repayment) less than 90 days, net

 

 

736

 

 

 

(415

)

Principal payments on debt

 

 

(500

)

 

 

(903

)

Proceeds from issuance of debt

 

 

2

 

 

 

1,497

 

Dividends paid

 

 

(867

)

 

 

(847

)

Purchases of treasury shares

 

 

(989

)

 

 

(551

)

Proceeds from exercise of stock options

 

 

455

 

 

 

259

 

Other financing activities

 

 

(43

)

 

 

5

 

Net cash provided by (used in) financing activities

 

 

(1,206

)

 

 

(955

)

 

 

 

 

 

Effect of exchange rate changes on Cash and cash equivalents

 

 

(17

)

 

 

(20

)

Net increase (decrease) in Cash and cash equivalents

 

 

144

 

 

 

44

 

Cash and cash equivalents at beginning of the period

 

 

966

 

 

 

775

 

Cash and cash equivalents at end of the period

 

$

1,110

 

 

$

819

 

 

 

 

 

 

Supplemental Cash Flow Information

 

 

 

 

Free cash flow before dividends (Net cash provided by operations less Capital expenditures)

 

 

 

 

Net cash provided by operations

 

$

1,671

 

 

$

1,457

 

Less: Capital expenditures

 

 

(243

)

 

 

(347

)

Free cash flow before dividends

 

$

1,428

 

 

$

1,110

 

 

 

 

 

 

 

 

 

 

 

Income taxes paid

 

$

505

 

 

$

450

 

Interest paid

 

$

161

 

 

$

129

 

 

 

 

 

 

 

 

 

Table 5

Colgate-Palmolive Company

 

 

 

 

 

Segment Information

 

 

 

 

 

For the Three and Six Months Ended June 30, 2024 and 2023

 

 

 

 

 

(Dollars in Millions) (Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

Net Sales

 

 

 

 

 

 

 

 

Oral, Personal and Home Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1,002

 

 

$

978

 

 

$

1,999

 

 

$

1,936

 

Latin America

 

 

1,267

 

 

 

1,178

 

 

 

2,520

 

 

 

2,253

 

Europe

 

 

720

 

 

 

678

 

 

 

1,432

 

 

 

1,328

 

Asia Pacific

 

 

682

 

 

 

664

 

 

 

1,408

 

 

 

1,402

 

Africa/Eurasia

 

 

273

 

 

 

268

 

 

 

549

 

 

 

556

 

 

 

 

 

 

 

 

 

 

Total Oral, Personal and Home Care

 

 

3,944

 

 

 

3,766

 

 

 

7,908

 

 

 

7,475

 

 

 

 

 

 

 

 

 

 

Pet Nutrition

 

 

1,114

 

 

 

1,056

 

 

 

2,216

 

 

 

2,117

 

 

 

 

 

 

 

 

 

 

Total Net Sales

 

$

5,058

 

 

$

4,822

 

 

$

10,124

 

 

$

9,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

Operating Profit

 

 

 

 

 

 

 

 

Oral, Personal and Home Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

223

 

 

$

227

 

 

$

445

 

 

$

420

 

Latin America

 

 

417

 

 

 

363

 

 

 

822

 

 

 

678

 

Europe

 

 

159

 

 

 

134

 

 

 

303

 

 

 

250

 

Asia Pacific

 

 

195

 

 

 

169

 

 

 

402

 

 

 

371

 

Africa/Eurasia

 

 

64

 

 

 

62

 

 

 

130

 

 

 

130

 

 

 

 

 

 

 

 

 

 

Total Oral, Personal and Home Care

 

 

1,058

 

 

 

955

 

 

 

2,102

 

 

 

1,849

 

 

 

 

 

 

 

 

 

 

Pet Nutrition

 

 

235

 

 

 

191

 

 

 

433

 

 

 

374

 

Corporate(1)

 

 

(201

)

 

 

(172

)

 

 

(397

)

 

 

(340

)

 

 

 

 

 

 

 

 

 

Total Operating Profit

 

$

1,092

 

 

$

974

 

 

$

2,139

 

 

$

1,883

 

Note: Table may not sum due to rounding.

 

(1) Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation charges and gains and losses on sales of non-core product lines and assets.

 

Corporate Operating profit (loss) for the three months ended June 30, 2024 and June 30, 2023 included charges resulting from the 2022 Global Productivity Initiative of $27 and $18, respectively.

 

Corporate Operating profit (loss) for the six months ended June 30, 2024 included charges resulting from the 2022 Global Productivity Initiative of $63.

 

Corporate Operating profit (loss) for the six months ended June 30, 2023 included product recall costs of $25 and charges resulting from the 2022 Global Productivity Initiative of $23.

Table 6

Colgate-Palmolive Company

 

Geographic Sales Analysis Percentage Changes

 

For the Three Months Ended June 30, 2024 vs. 2023

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPONENTS OF SALES CHANGE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pricing

 

 

 

 

 

 

 

 

 

 

 

 

Coupons

 

 

 

 

Sales

 

 

 

 

 

 

 

Consumer &

 

 

 

 

Change

 

Organic

 

As Reported

 

Organic

 

Trade

 

Foreign

Region

 

As Reported

 

Sales Change

 

Volume

 

Volume

 

Incentives

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

4.9

%

 

9.0

%

 

4.7

%

 

4.7

%

 

4.2

%

 

(4.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2.5

%

 

2.5

%

 

5.9

%

 

5.9

%

 

(3.3

)%

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

7.6

%

 

18.8

%

 

5.5

%

 

5.5

%

 

13.3

%

 

(11.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

6.2

%

 

6.5

%

 

5.2

%

 

5.2

%

 

1.3

%

 

(0.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

2.6

%

 

5.1

%

 

3.4

%

 

3.4

%

 

1.7

%

 

(2.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Africa/Eurasia

 

2.2

%

 

16.4

%

 

8.4

%

 

8.4

%

 

8.0

%

 

(14.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total CP Products

 

4.7

%

 

9.8

%

 

5.4

%

 

5.4

%

 

4.4

%

 

(5.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Hill’s

 

5.5

%

 

6.1

%

 

2.5

%

 

2.5

%

 

3.7

%

 

(0.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emerging Markets(1)

 

5.9

%

 

14.6

%

 

5.6

%

 

5.6

%

 

9.0

%

 

(8.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Developed Markets

 

4.0

%

 

4.5

%

 

4.0

%

 

4.0

%

 

0.4

%

 

(0.4

)%

Note: Table may not sum due to rounding.

 

(1) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.

Table 7

Colgate-Palmolive Company

 

Geographic Sales Analysis Percentage Changes

 

For the Six Months Ended June 30, 2024 vs. 2023

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPONENTS OF SALES CHANGE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pricing

 

 

 

 

 

 

 

 

 

 

 

 

Coupons

 

 

 

 

Sales

 

 

 

 

 

 

 

Consumer &

 

 

 

 

Change

 

Organic

 

As Reported

 

Organic

 

Trade

 

Foreign

Region

 

As Reported

 

Sales Change

 

Volume

 

Volume

 

Incentives

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

5.5

%

 

9.4

%

 

3.0

%

 

3.0

%

 

6.3

%

 

(3.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3.2

%

 

3.3

%

 

4.4

%

 

4.4

%

 

(1.1

)%

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

11.8

%

 

22.2

%

 

5.8

%

 

5.8

%

 

16.4

%

 

(10.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

7.8

%

 

6.8

%

 

4.2

%

 

4.2

%

 

2.7

%

 

1.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

0.4

%

 

3.2

%

 

0.1

%

 

0.1

%

 

3.1

%

 

(2.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Africa/Eurasia

 

(1.3

)%

 

16.3

%

 

6.1

%

 

6.1

%

 

10.2

%

 

(17.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total CP Products

 

5.8

%

 

10.6

%

 

4.1

%

 

4.1

%

 

6.5

%

 

(4.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Hill’s

 

4.7

%

 

5.2

%

 

(0.7

)%

 

(0.7

)%

 

5.9

%

 

(0.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emerging Markets(1)

 

6.7

%

 

15.1

%

 

3.9

%

 

3.9

%

 

11.3

%

 

(8.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Developed Markets

 

4.6

%

 

4.7

%

 

2.3

%

 

2.3

%

 

2.3

%

 

(0.1

)%

Note: Table may not sum due to rounding.

 

(1) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.

Table 8

Colgate-Palmolive Company

 

Non-GAAP Reconciliations

 

For the Three Months Ended June 30, 2024 and 2023

 

(Dollars in Millions Except Per Share Amounts) (Unaudited)

 

 

 

 

 

 

 

Gross Profit

 

2024

 

2023

 

 

Gross profit, GAAP

$

3,066

 

 

$

2,787

 

 

 

2022 Global Productivity Initiative

 

9

 

 

 

 

 

 

Gross profit, non-GAAP

$

3,075

 

 

$

2,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis Point

Gross Profit Margin

2024

 

2023

 

Change

Gross profit margin, GAAP

 

60.6

%

 

 

57.8

%

 

280

 

2022 Global Productivity Initiative

 

0.2

%

 

 

%

 

 

Gross profit margin, non-GAAP

 

60.8

%

 

 

57.8

%

 

300

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

2024

 

2023

 

 

Selling, general and administrative expenses, GAAP

$

1,939

 

 

$

1,768

 

 

 

2022 Global Productivity Initiative

 

(2

)

 

 

(2

)

 

 

Selling, general and administrative expenses, non-GAAP

$

1,937

 

 

$

1,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis Point

Selling, General and Administrative Expenses as a Percentage of Net Sales

2024

 

2023

 

Change

Selling, general and administrative expenses as a percentage of Net sales, GAAP

 

38.3

%

 

 

36.7

%

 

160

 

2022 Global Productivity Initiative

 

%

 

 

(0.1

)%

 

 

Selling, general and administrative expenses as a percentage of Net sales, non-GAAP

 

38.3

%

 

 

36.6

%

 

170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (Income) Expense, Net

2024

 

2023

 

 

Other (income) expense, net, GAAP

$

35

 

 

$

45

 

 

 

2022 Global Productivity Initiative

 

(16

)

 

 

(16

)

 

 

Other (income) expense, net, non-GAAP

$

20

 

 

$

29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

2024

 

2023

 

% Change

Operating profit, GAAP

$

1,092

 

 

$

974

 

 

12

%

2022 Global Productivity Initiative

 

27

 

 

 

18

 

 

 

Operating profit, non-GAAP

$

1,118

 

 

$

992

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis Point

Operating Profit Margin

2024

 

2023

 

Change

Operating profit margin, GAAP

 

21.6

%

 

 

20.2

%

 

140

 

2022 Global Productivity Initiative

 

0.5

%

 

 

0.4

%

 

 

Operating profit margin, non-GAAP

 

22.1

%

 

 

20.6

%

 

150

 

 

 

 

 

 

 

 

 

Non-Service Related Postretirement Costs

2024

 

2023

 

 

Non-service related postretirement costs, GAAP

$

22

 

 

$

29

 

 

 

2022 Global Productivity Initiative

 

 

 

 

(3

)

 

 

Non-service related postretirement costs, non-GAAP

$

22

 

 

$

26

 

 

 

Note: Tables may not sum due to rounding.

Table 8

Continued

Colgate-Palmolive Company

 

Non-GAAP Reconciliations

 

For the Three Months Ended June 30, 2024 and 2023

 

(Dollars in Millions Except Per Share Amounts) (Unaudited)

 

 

2024

 

Income

Before

Income

Taxes

 

Provision

For

Income

Taxes(1)

 

Net Income

Including

Noncontrolling

Interests

 

Less: Income

Attributable to

Noncontrolling

Interests

 

Net Income

Attributable To

Colgate-

Palmolive

Company

 

Effective

Income

Tax Rate(2)

 

Diluted

Earnings

Per Share

As Reported GAAP

$

1,010

 

$

243

 

 

$

767

 

$

36

 

$

731

 

24.1

%

 

$

0.89

2022 Global Productivity Initiative

 

27

 

 

4

 

 

 

23

 

 

 

 

23

 

(0.3

)%

 

 

0.02

Non-GAAP

$

1,036

 

$

247

 

 

$

789

 

$

36

 

$

753

 

23.8

%

 

$

0.91

 

 

 

2023

 

Income

Before

Income

Taxes

 

Provision

For

Income

Taxes(1)

 

Net Income

Including

Noncontrolling

Interests

 

Less: Income

Attributable to

Noncontrolling

Interests

 

Net Income

Attributable To

Colgate-

Palmolive

Company

 

Effective

Income

Tax Rate(2)

 

Diluted

Earnings

Per Share

As Reported GAAP

$

887

 

$

353

 

 

$

534

 

$

32

 

$

502

 

39.8

%

 

$

0.60

Foreign tax matter

 

 

 

(126

)

 

 

126

 

 

 

 

126

 

(14.2

)%

 

 

0.15

2022 Global Productivity Initiative

 

21

 

 

4

 

 

 

17

 

 

1

 

 

16

 

(0.2

)%

 

 

0.02

Non-GAAP

$

908

 

$

231

 

 

$

677

 

$

33

 

$

644

 

25.4

%

 

$

0.77

Note: Tables may not sum due to rounding. The impact of non-GAAP adjustments may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

 

(1) The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

 

(2) The impact of non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income before income taxes and Provision for income taxes.

Table 9

Colgate-Palmolive Company

 

Non-GAAP Reconciliations

 

For the Six Months Ended June 30, 2024 and 2023

 

(Dollars in Millions Except Per Share Amounts) (Unaudited)

 

 

 

 

 

 

 

Gross Profit

 

2024

 

2023

 

 

Gross profit, GAAP

$

6,105

 

 

$

5,499

 

 

 

2022 Global Productivity Initiative

 

9

 

 

 

 

 

 

Gross profit, non-GAAP

$

6,114

 

 

$

5,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit Margin

2024

 

2023

 

Change

Gross profit margin, GAAP

 

60.3

%

 

 

57.3

%

 

300

 

2022 Global Productivity Initiative

 

0.1

%

 

 

%

 

 

Gross profit margin, non-GAAP

 

60.4

%

 

 

57.3

%

 

310

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

2024

 

2023

 

 

Selling, general and administrative expenses, GAAP

$

3,855

 

 

$

3,526

 

 

 

2022 Global Productivity Initiative

 

(3

)

 

 

(2

)

 

 

Selling, general and administrative expenses, non-GAAP

$

3,852

 

 

$

3,524

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis Point

Selling, General and Administrative Expenses as a Percentage of Net Sales

2024

 

2023

 

Change

Selling, general and administrative expenses as a percentage of Net sales, GAAP

 

38.1

%

 

 

36.8

%

 

130

 

2022 Global Productivity Initiative

 

(0.1

)%

 

 

(0.1

)%

 

 

Selling, general and administrative expenses as a percentage of Net sales, non-GAAP

 

38.0

%

 

 

36.7

%

 

130

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (Income) Expense, Net

2024

 

2023

 

 

Other (income) expense, net, GAAP

$

111

 

 

$

90

 

 

 

2022 Global Productivity Initiative

 

(51

)

 

 

(21

)

 

 

Product recall costs

 

 

 

 

 

(25

)

 

 

Other (income) expense, net, non-GAAP

$

60

 

 

$

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

2024

 

2023

 

% Change

Operating profit, GAAP

$

2,139

 

 

$

1,883

 

 

14

%

2022 Global Productivity Initiative

 

63

 

 

 

23

 

 

 

Product recall costs

 

 

 

 

 

25

 

 

 

Operating profit, non-GAAP

$

2,202

 

 

$

1,931

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis Point

Operating Profit Margin

2024

 

2023

 

Change

Operating profit margin, GAAP

 

21.1

%

 

 

19.6

%

 

150

 

2022 Global Productivity Initiative

 

0.7

%

 

 

0.2

%

 

 

Product recall costs

 

 

%

 

 

0.3

%

 

 

Operating profit margin, non-GAAP

 

21.8

%

 

 

20.1

%

 

170

 

 

 

 

 

 

 

 

 

Non-Service Related Postretirement Costs

2024

 

2023

 

 

Non-service related postretirement costs, GAAP

$

44

 

 

$

323

 

 

 

ERISA litigation matter

 

 

 

 

 

(267

)

 

 

2022 Global Productivity Initiative

 

 

 

 

(4

)

 

 

Non-service related postretirement costs, non-GAAP

$

44

 

 

$

52

 

 

 

 

 

 

 

 

 

 

Table 9

Continued

Colgate-Palmolive Company

 

Non-GAAP Reconciliations

 

For the Six Months Ended June 30, 2024 and 2023

 

(Dollars in Millions Except Per Share Amounts) (Unaudited)

 

 

2024

 

Income

Before

Income

Taxes

 

Provision

For

Income

Taxes(1)

 

Net Income

Including

Noncontrolling

Interests

 

Less: Income

Attributable to

Noncontrolling

Interests

 

Net Income

Attributable

To

Colgate-

Palmolive

Company

 

Effective

Income

Tax Rate(2)

 

Diluted

Earnings

Per Share

As Reported GAAP

$

1,977

 

$

482

 

 

$

1,495

 

$

81

 

$

1,414

 

24.4

%

 

$

1.71

2022 Global Productivity Initiative

 

63

 

 

10

 

 

 

53

 

 

 

 

53

 

(0.3

)%

 

 

0.07

Non-GAAP

$

2,040

 

$

492

 

 

$

1,548

 

$

81

 

$

1,467

 

24.1

%

 

$

1.78

 

 

 

2023

 

Income

Before

Income

Taxes

 

Provision

For

Income

Taxes(1)

 

Net Income

Including

Noncontrolling

Interests

 

Less: Income

Attributable to

Noncontrolling

Interests

 

Net Income

Attributable

To

Colgate-

Palmolive

Company

 

Effective

Income

Tax Rate(2)

 

Diluted

Earnings

Per Share

As Reported GAAP

$

1,448

 

$

500

 

 

$

948

 

$

74

 

$

874

 

34.5

%

 

$

1.05

ERISA litigation matter

 

267

 

 

55

 

 

 

212

 

 

 

 

212

 

(2.2

)%

 

 

0.25

Foreign tax matter

 

 

 

(126

)

 

 

126

 

 

 

 

126

 

(7.3

)%

 

 

0.15

2022 Global Productivity Initiative

 

27

 

 

5

 

 

 

22

 

 

1

 

 

21

 

(0.1

)%

 

 

0.03

Product recall costs

 

25

 

 

6

 

 

 

19

 

 

 

 

19

 

%

 

 

0.02

Non-GAAP

$

1,767

 

$

440

 

 

$

1,327

 

$

75

 

$

1,252

 

24.9

%

 

$

1.50

Note: The impact of non-GAAP adjustments may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

 

(1) The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

 

(2) The impact of non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustments on Income before income taxes and Provision for income taxes.

 

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