| Colgate-Palmolive Company (NYSE: CL): |
- Net sales increased 2.4%; Organic sales* increased 6.8%
|
- GAAP EPS increased 5% to $0.90; Base Business EPS* increased 6% to $0.91
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- GAAP Gross profit margin increased 260 basis points to 61.1%; Base Business Gross profit margin* increased 270 basis points to 61.3%
|
- Net cash provided by operations was $2,838 million for the first nine months of 2024
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- Colgate’s leadership in toothpaste continued with its global market share at 41.6% year-to-date
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- Colgate’s leadership in manual toothbrushes continued with its global market share at 32.3% year-to-date
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- The Company updated its financial guidance for full-year 2024
|
| Third Quarter Total Company Results (GAAP) |
| ($ in millions except per share amounts) |
2024 |
2023 |
Change |
| Net Sales |
$5,033 |
$4,915 |
+2.4% |
| EPS (diluted) |
$0.90 |
$0.86 |
+5% |
| |
|
|
|
| |
|
|
|
| Third Quarter Total Company Results (Base Business - Non-GAAP)* |
| |
2024 |
2023 |
Change |
| Organic Sales Growth |
+6.8% |
| Base Business EPS (diluted) |
$0.91 |
$0.86 |
+6% |
| *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 the third quarter of 2024. Noel Wallace, Chairman, President and Chief Executive Officer, commented on the Base Business third quarter results, “We are very pleased to have delivered another quarter of strong top and bottom line results with earnings exceeding our expectations. Net sales increased 2.4% and organic sales grew 6.8% (on top of 8.8% organic sales growth in the year-ago quarter) driven by a healthy balance of volume growth and higher pricing. Every operating division delivered positive volume growth for the second consecutive quarter as we focused on increasing household penetration to drive category growth and market shares. |
| “We are particularly pleased with the quality of our results this quarter on top of our strong first-half results. This is our sixth consecutive quarter delivering gross margin expansion along with growth in operating profit, net income and earnings per share. Advertising increased 16% in the quarter behind science-led, core and premium innovation across price tiers. We expect continued strong advertising investment through the remainder of the year as we focus on building brand health and scaling the capabilities needed to drive growth. |
| “Our strong results this quarter and year to date add to our confidence that we are executing the right strategies to deliver on our updated 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 now expects net sales growth of 3% to 5% (versus 2% to 5% previously) including a mid-single-digit negative impact from foreign exchange.
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- The Company now expects organic sales growth of 7% to 8% (versus 6% to 8% previously).
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- On a GAAP basis, the Company still expects gross profit margin expansion, increased advertising investment and double-digit earnings per share growth.
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- On a non-GAAP (Base Business) basis, the Company still expects gross profit margin expansion and increased advertising investment and now expects earnings per share growth of 10% to 11% (versus 8% to 11% 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. |
| Third Quarter Sales Growth By Division
(% change 3Q 2024 vs. 3Q 2023 except % of Total Company Sales) |
|
|
|
| |
% of Total
Company
Sales |
Net
Sales |
Organic
Sales* |
As
Reported
Volume |
Organic
Volume |
Pricing |
FX |
| North America(1) |
20% |
-2.1% |
-1.9% |
+1.2% |
+1.2% |
-3.2% |
-0.2% |
| Latin America |
23% |
-3.2% |
+14.2% |
+3.3% |
+3.3% |
+10.9% |
-17.4% |
| Europe(1) |
15% |
+8.0% |
+6.3% |
+4.1% |
+4.1% |
+2.2% |
+1.6% |
| Asia Pacific |
14% |
+6.3% |
+6.1% |
+6.5% |
+6.5% |
-0.3% |
+0.2% |
| Africa/Eurasia |
6% |
+4.8% |
+10.8% |
+6.9% |
+6.9% |
+3.9% |
-6.0% |
| Hill’s |
22% |
+6.3% |
+6.5% |
+3.6% |
+3.6% |
+2.8% |
-0.1% |
| |
|
|
|
|
|
|
|
| Total Company |
100% |
+2.4% |
+6.8% |
+3.7% |
+3.7% |
+3.1% |
-4.4% |
| Note: The table may not sum due to rounding. |
| |
| (1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of July 1, 2024. The results of the skin health business previously reported within the Europe reportable operating segment are reported with the other skin health businesses in the North America reportable operating segment. Recast historical geographic segment information can be found on the Company's website. |
| Third Quarter Operating Profit By Division
($ in millions) |
|
| |
3Q 2024 |
% Change vs
3Q 2023 |
% to Net
Sales |
Change in basis
points vs 3Q 2023
% to Net Sales |
| North America(1) |
$206 |
-9% |
20.5% |
-170 |
| Latin America |
$365 |
-2% |
31.6% |
+40 |
| Europe(1) |
$181 |
10% |
24.3% |
+30 |
| Asia Pacific |
$199 |
3% |
27.4% |
-90 |
| Africa/Eurasia |
$65 |
-1% |
23.4% |
-140 |
| Hill’s |
$258 |
28% |
22.9% |
+390 |
| |
|
|
|
|
| Total Company, As Reported |
$1,065 |
4% |
21.2% |
+30 |
| Total Company, Base Business* |
$1,080 |
5% |
21.5% |
+50 |
| (1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of July 1, 2024. |
|
| *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. |
|
| *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. |
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| 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 |
| For the full document click the link below: |
| Colgate-Palmolive Company |
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