Colgate-Palmolive Company’s (CL) shares have gained 7.1% in the past three months, outperforming the Zacks Consumer Products - Staples industry’s growth of 1% and the broader Consumer Staples sector’s rally of 6.6%. CL stock has outpaced the S&P 500’s 8.3% decline.Colgate is a renowned player in the consumer products space. The company has created a niche in consumers’ everyday essentials with its oral care, household, healthcare and personal care products. In the most recent earnings release, management hi ...

Colgate-Palmolive Co CL posted better-than-expected first-quarter FY25 earnings on Friday.The company’s first-quarter FY25 sales declined 3% year over year to $4.91 billion, beating the analyst consensus estimate of $4.86 billion. Non-GAAP EPS of $0.91 beat the consensus estimate of $0.86.“As we look ahead, uncertainty and volatility in global markets, including the impact of tariffs, remain challenging. We are confident in our strategy and will continue to execute with focus and agility to mitigate these f ...

COLGATE-PALMOLIVE COMPANY 1Q 2025 EARNINGS PRESENTATION APRIL 25, 2025 April 2025 Notice for Investor Presentation Please review the following first quarter 2025 earnings presentation in conjunction with our first quarter 2025 earnings press release, our first quarter 2025 prepared management remarks and additional information regarding our non-GAAP financial measures, including GAAP to non-GAAP reconciliations, which are available in the Investor Center section of our website at www.colgatepalmolive.com/in ...

Core Viewpoint - Colgate-Palmolive Company reported first-quarter 2025 results with earnings and sales exceeding expectations, driven by organic sales growth, strong volume and pricing performance, and gross profit margin expansion [1][2][3] Financial Performance - Earnings on a Base Business basis were 91 cents per share, a 6% increase year over year, surpassing the Zacks Consensus Estimate of 86 cents [2] - Net sales totaled $4,911 million, a 3.1% decline from the previous year but above the Zacks Consensus Estimate of $4,855 million; organic sales grew by 1.4% despite a 4.4% negative impact from foreign exchange [3][4] - Gross profit was $2,987 million, down from $3,039 million year over year, but gross profit margin expanded by 80 basis points to 60.8% [6] - Operating profit increased to $1,076 million from $1,047 million year over year, with an operating profit margin expansion of 120 basis points to 21.9% [7] Segment Performance - North America's net sales, accounting for 20% of total sales, decreased by 3.6% year over year; Latin America's net sales fell by 8.7% due to currency impacts, although organic sales rose by 4% [8] - Europe's net sales increased by 2.5% year over year, driven by volume and pricing gains, while the Asia Pacific segment saw a 5% decline in net sales [9] - Africa/Eurasia's net sales dipped by 1.5% year over year, but organic sales advanced by 1.8% [10] - Hill's Pet Nutrition's net sales improved by 1.5% year over year, with a 3.2% rise in pricing [11] Cash Flow and Debt - The company ended the first quarter with cash and cash equivalents of $1,112 million and total debt of $8,269 million; net cash provided by operating activities was $600 million [12] 2025 Outlook - Colgate projects low single-digit growth in net sales, with an anticipated adverse impact from foreign exchange; organic sales growth is now expected to be between 2-4% [13][15] - The company anticipates earnings per share to increase in low single digits, with gross profit margin and advertising investment remaining stable as a percentage of sales [15][16] Stock Performance - Colgate's shares have risen by 2.1% over the past three months, contrasting with a 1.9% decline in the industry [17]

Financial Data and Key Metrics Changes - The company anticipates a $200 million incremental impact from tariffs in 2025 compared to initial guidance [11] - Advertising spending is at an all-time high, reflecting a strong focus on driving ROI [16] - The company delivered strong profit growth in Q1 despite market volatility [17] Business Line Data and Key Metrics Changes - The Hill's business saw a 5% organic growth, indicating strong performance across all price tiers [69] - The company is focused on core innovation, including the relaunch of Colgate Total and Hill's Science Diet with ActiveBiome technology [10][62] - The company experienced a negative 3% organic sales growth in Q1 [30] Market Data and Key Metrics Changes - In North America, there was a notable softness in volume due to lower store traffic and consumer uncertainty [129] - Latin America continues to show strong market share performance, with expectations of recovery as the macro environment stabilizes [56][132] - The Chinese market remains challenging, particularly for the Hawley and Hazel business, while Colgate continues to perform well [57] Company Strategy and Development Direction - The company is focused on selling daily use products and enhancing brand health to drive long-term sustainable growth [9][22] - There is a commitment to innovation and premiumization, with plans to accelerate innovation in the second half of the year [62][119] - The company aims to leverage its global portfolio and geographic breadth to mitigate risks associated with market volatility [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a weaker consumer environment and expects continued volatility in 2025 [8][17] - There are early signs of category improvement in April, providing some confidence for the future [10][28] - The company anticipates that consumer confidence will return, leading to improved consumption in the medium term [80] Other Important Information - The company has invested approximately $2 billion in its U.S. supply chain over the past five years to enhance flexibility [12][104] - The company is focused on maintaining a strong balance sheet with low levels of net debt [16] Q&A Session Summary Question: Consumer pressures and category growth outlook - Management noted that while there was a slowdown in volume growth, early signs in April indicate potential stabilization and recovery in categories [28][30] Question: North America shipment and consumption trends - Management confirmed that shipments are pacing well with category improvements, although more work is needed in North America [35][36] Question: Pricing approach and tariff impacts - Management indicated that pricing improved sequentially and that they are taking a market-specific approach to offset tariff impacts [41][44] Question: Emerging markets performance - Management reported strong market share in Latin America and ongoing challenges in China, with expectations for gradual improvement [55][57] Question: Advertising spend and innovation plans - Management clarified that advertising spending remains strong and that innovation plans are on track, with a focus on stimulating consumption [60][62] Question: Hill's brand performance amid trading down - Management stated that there has been no trade down in the Hill's brand, which continues to perform well across all price tiers [69][70] Question: Tariff exposure and mitigation strategies - Management outlined strategies to mitigate tariff impacts through productivity, revenue growth management, and alternative sourcing [100][104] Question: Back half of the year expectations - Management expressed confidence in improved category growth rates and market share performance in the back half of the year [121][125]

Core Insights - Colgate-Palmolive reported revenue of $4.91 billion for Q1 2025, a year-over-year decline of 3%, but exceeded Zacks Consensus Estimate by 1.15% [1] - The company's EPS for the quarter was $0.91, up from $0.86 a year ago, representing a surprise of 5.81% over the consensus estimate [1] Revenue Performance by Region - North America: Net sales of $998 million, slightly below the estimated $1 billion, with a year-over-year change of +0.1% [4] - Latin America: Net sales of $1.14 billion, exceeding the $1.09 billion estimate, but down 8.8% year-over-year [4] - Africa/Eurasia: Net sales of $271 million, slightly below the $273.66 million estimate, with a year-over-year decline of 1.8% [4] - Europe: Net sales of $690 million, above the $674.15 million estimate, reflecting a year-over-year decline of 3% [4] - Asia Pacific: Net sales of $690 million, below the $727.36 million estimate, with a year-over-year decline of 5.1% [4] - Pet Nutrition: Net sales of $1.12 billion, exceeding the $1.09 billion estimate, with a year-over-year increase of 1.5% [4] - Total Oral, Personal and Home Care: Net sales of $3.79 billion, slightly above the $3.77 billion estimate, with a year-over-year decline of 4.3% [4] Operating Profit Analysis - Total Oral, Personal and Home Care: Operating profit of $971 million, below the estimated $1.01 billion [4] - Corporate: Operating profit of -$153 million, better than the estimated -$182.49 million [4] - Pet Nutrition: Operating profit of $258 million, exceeding the $239.30 million estimate [4] Stock Performance - Colgate-Palmolive shares returned -0.5% over the past month, compared to the Zacks S&P 500 composite's -4.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Insights - Colgate-Palmolive surpassed earnings expectations in Q1 2025 despite a decline in overall sales, with GAAP revenue of $4.9 billion, down 3.1% from Q1 2024, but exceeding estimates by $45 million [1] Financial Performance - Non-GAAP EPS increased by 5.8% to $0.91, surpassing the estimate of $0.86 [2] - GAAP revenue decreased to $4.91 billion from $5.07 billion in Q1 2024, reflecting a 3.1% year-over-year decline [2] - Gross profit margin improved by 0.8 percentage points to 60.8% [2] - Operating profit margin increased by 1.2 percentage points to 21.9% [2][8] Business Overview - Colgate-Palmolive holds a 40.9% global market share in toothpaste and 31.9% in manual toothbrushes, with products marketed in over 200 countries [3] - The company emphasizes sustainability initiatives, including a commitment to recyclable toothpaste tubes [4] Geographic Performance - Europe saw a 5.4% organic sales increase due to balanced pricing and volume strategies [7] - Hill's Pet Nutrition achieved a 1.5% rise in net sales and a 2.9% boost in organic sales [7] - Latin America faced a 12.7% decline in net sales due to foreign exchange headwinds but managed a positive organic growth of 4% [7][6] Strategic Challenges - The company faces heightened global market competition, particularly from private labels, and ongoing raw material cost volatility [8] Future Outlook - Colgate-Palmolive projects low single-digit net sales growth for FY2025, with organic sales growth anticipated between 2% and 4% [9]

Core Viewpoint - Colgate-Palmolive reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, marking a year-over-year increase from $0.86 per share [1] Financial Performance - The company achieved revenues of $4.91 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.15%, although this represents a decline from $5.07 billion in the same quarter last year [2] - Over the last four quarters, Colgate-Palmolive has exceeded consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - Colgate-Palmolive shares have increased approximately 2% since the beginning of the year, contrasting with a decline of 6.8% in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.94, with projected revenues of $5.01 billion, and for the current fiscal year, the EPS estimate is $3.67 on revenues of $20.03 billion [7] - The trend of earnings estimate revisions is mixed, which could change following the recent earnings report [6] Industry Context - The Consumer Products - Staples industry is currently ranked in the top 37% of over 250 Zacks industries, suggesting that companies in the top half tend to outperform those in the bottom half by more than 2 to 1 [8]

Sales Performance - Approximately two-thirds of Colgate-Palmolive's net sales are generated from markets outside the U.S., with about 45% coming from emerging markets[90]. - Worldwide net sales were $4,911 million in Q1 2025, down 3.1% from Q1 2024, with organic sales increasing by 1.4%[112]. - Net sales in the Oral, Personal and Home Care segment were $3,792 million, down 4.3% from Q1 2024, while organic sales increased by 1.0%[113]. - Net sales in North America decreased 3.6% to $998 million, driven by volume declines of 2.3% and net selling price decreases of 0.7%[145]. - Net sales in Latin America decreased 8.7% to $1,143 million, impacted by negative foreign exchange of 12.7%[148]. - Net sales in Europe increased 2.5% to $690 million, with organic sales growth of 5.4% driven by the United Kingdom, Germany, and France[152]. - Net sales in Asia Pacific decreased 5.0% to $690 million, with organic sales declining 3.1% primarily due to the Greater China region[155]. - Net sales in the Hill's Pet Nutrition segment were $1,118 million, up 1.5% from Q1 2024, with organic sales increasing by 2.9%[115]. Profitability and Expenses - Gross profit decreased to $2,987 million in Q1 2025 from $3,039 million in Q1 2024, while gross profit margin increased to 60.8% from 60.0%[117][118]. - Selling, general and administrative expenses decreased by 1% to $1,898 million, with a percentage of net sales increasing to 38.6% from 37.8%[120][121]. - Operating profit increased by 3% to $1,076 million, with an operating profit margin of 21.9%, up 120 basis points from the previous year[126][127]. - Operating profit in North America decreased 8% to $196 million, with a margin of 19.6%, down 100 basis points from the previous year[147]. - Operating profit in Europe increased 12% to $172 million, with a margin of 24.9%, up 220 basis points[154]. - Operating profit for Hill's Pet Nutrition rose 30% to $258 million, with an operating profit margin of 23.1%, an increase of 510 basis points compared to the previous year[163]. Income and Earnings Per Share - Net income attributable to Colgate-Palmolive Company in Q1 2025 increased to $690 million, up from $683 million in Q1 2024, with diluted earnings per share rising to $0.85 from $0.83[141]. - Excluding certain charges, net income in Q1 2025 increased 4% to $743 million, and diluted earnings per share increased 6% to $0.91[142]. Costs and Charges - The company expects incremental gross costs of approximately $200 million in 2025 due to tariffs imposed by the United States and other countries[104]. - The company recorded a charge of $65 million related to a lawsuit under the Employee Retirement Income Security Act (ERISA) during the quarter ended March 31, 2025[101]. - Non-service related postretirement costs were $72 million in Q1 2025 compared to $22 million in Q1 2024[129]. - Colgate-Palmolive continues to experience higher raw and packaging material costs, which may adversely affect future results[107]. Strategic Initiatives - Colgate-Palmolive announced the acquisition of Care TopCo Pty Ltd, owner of the Prime100 pet food brand, which is expected to close in Q2 2025[93]. - The 2022 Global Productivity Initiative resulted in pretax costs of $36 million, aimed at reallocating resources towards strategic priorities and efficiencies[102]. - The company is focused on delivering consistent compounded earnings per share growth through organic sales growth and operational efficiencies[111]. - Colgate-Palmolive's business strategy includes prioritizing investments in high growth and high margin segments within Oral Care, Personal Care, and Pet Nutrition[99]. Market Conditions - The company faces heightened competitive activity in certain markets, impacting pricing pressures and relationships with key retailers[108]. - The global toothpaste market share was 40.9%, a decrease of 0.5 share points year-over-year, while the manual toothbrush market share increased to 31.9%, up 0.3 share points[114]. Cash Flow and Debt - Net cash provided by operations decreased by 12% to $600 million in Q1 2025, compared to $681 million in Q1 2024, mainly due to changes in working capital[173]. - Total debt increased to $8,269 million as of March 31, 2025, up from $7,949 million at the end of 2024[176]. Dividends and Capital Expenditures - The company announced an increase in the quarterly common stock dividend to $0.52 per share from $0.50, effective in Q2 2025[179]. - Capital expenditures for Q1 2025 were $124 million, with expectations for capital expenditures to be approximately 3.0% of net sales for the year[174]. IT and Internal Controls - The company is in the process of upgrading its enterprise IT system to SAP S/4 HANA, which is not expected to materially impact internal controls over financial reporting[189]. - As of March 31, 2025, the company's disclosure controls and procedures were evaluated and deemed effective by the management team[188]. - There were no material changes in the company's internal control over financial reporting during the most recent fiscal quarter[190]. - There is no material change in the information regarding market risk exposure as reported in the Annual Report for the year ended December 31, 2024[186].

Financial Performance - Net sales decreased by 3.1% to $4,911 million, while organic sales grew by 1.4%[3] - GAAP EPS increased by 2% to $0.85, and Base Business EPS rose by 6% to $0.91[3] - Gross profit margin improved by 80 basis points to 60.8%[3] - Total company operating profit increased by 3% to $1,076 million, with a margin of 21.9%[11] - Net income attributable to Colgate-Palmolive Company was $690 million in Q1 2025, compared to $683 million in Q1 2024[25] - Net income (GAAP) for 2025 was reported at $953 million, compared to $729 million in 2024[43] - Non-GAAP net income for 2025 was $1,018 million, an increase from $779 million in 2024[43] Sales and Market Share - Colgate maintained a global market share of 40.9% in toothpaste and 31.9% in manual toothbrushes year to date[3] - North America reported a 3.6% decline in net sales, while Latin America saw an 8.7% decrease[8] - Net sales for Q1 2025 were $4,911 million, a decrease of 3.1% compared to $5,065 million in Q1 2024[25] - North America net sales decreased by 3.6% in Q1 2025, while Europe saw an increase of 2.5%[36] Cash Flow and Debt - Net cash provided by operations was $600 million for the first three months of 2025[3] - Free cash flow before dividends was $476 million in Q1 2025, down from $555 million in Q1 2024[29] - Total debt rose to $8,269 million as of March 31, 2025, compared to $7,949 million at the end of 2024[27] Expenses and Profit Margins - Selling, general and administrative expenses (GAAP) for 2025 were $1,898 million, a decrease from $1,916 million in 2024[40] - Operating profit (GAAP) increased by 3% to $1,076 million in 2025 from $1,047 million in 2024[40] - Operating profit margin (GAAP) improved to 21.9% in 2025, up from 20.7% in 2024, reflecting a 120 basis point increase[40] - Selling, general and administrative expenses as a percentage of net sales (non-GAAP) was 38.3% in 2025, up from 37.8% in 2024[40] Tax and Working Capital - The effective tax rate improved to 23.7% in Q1 2025 from 24.6% in Q1 2024[25] - The effective tax rate for diluted earnings per share was 23.7% in 2025, slightly down from 24.6% in 2024[43] - The company reported a working capital as a percentage of sales of (3.3)% in Q1 2025, an improvement from (5.2)% in Q4 2024[27] Other Financial Metrics - Total assets increased to $16,647 million as of March 31, 2025, up from $16,046 million at the end of 2024[27] - Non-service related postretirement costs (GAAP) rose significantly to $72 million in 2025 from $22 million in 2024[40] - Other (income) expense, net (GAAP) decreased to $13 million in 2025 from $76 million in 2024[40] - Hill's division experienced a 1.5% increase in net sales, with a 30% rise in operating profit[11] Future Outlook - The company expects full-year 2025 net sales to increase by low single digits, with organic sales growth projected at 2% to 4%[6] - Advertising investment as a percentage of net sales increased by 30 basis points to 13.6%[5]