Colgate Announces 2nd Quarter 2024 Results
NEW YORK, July 26, 2024--(BUSINESS WIRE)--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 | Net | Organic | As | Organic | 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 | % to Net | Change in basis | |
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 | Provision | Net Income | Less: Income | Net Income | Effective | Diluted | |||||||||||||||
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 | Provision | Net Income | Less: Income | Net Income | Effective | Diluted | |||||||||||||||
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 | Provision | Net Income | Less: Income | Net Income Colgate- | Effective | Diluted | |||||||||||||||
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 | Provision | Net Income | Less: Income | Net Income | Effective | Diluted | |||||||||||||||
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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