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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240726925697/en/
Investor Relations: investor_relations@colpal.com
Communications: colgate_palmolive_media_inquiry@colpal.com
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