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Colgate-Palmolive(CL) - 2025 Q1 - Quarterly Results
CLColgate-Palmolive(CL)2025-04-25 11:57

Financial Performance - Net sales decreased by 3.1% to 4,911million,whileorganicsalesgrewby1.44,911 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]−Grossprofitmarginimprovedby80basispointsto60.80.91[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 690millioninQ12025,comparedto690 million in Q1 2025, compared to 683 million in Q1 2024[25] - Net income (GAAP) for 2025 was reported at 953million,comparedto953 million, compared to 729 million in 2024[43] - Non-GAAP net income for 2025 was 1,018million,anincreasefrom1,018 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 4,911million,adecreaseof3.14,911 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 600millionforthefirstthreemonthsof2025[3]−Freecashflowbeforedividendswas600 million for the first three months of 2025[3] - Free cash flow before dividends was 476 million in Q1 2025, down from 555millioninQ12024[29]−Totaldebtroseto555 million in Q1 2024[29] - Total debt rose to 8,269 million as of March 31, 2025, compared to 7,949millionattheendof2024[27]ExpensesandProfitMargins−Selling,generalandadministrativeexpenses(GAAP)for2025were7,949 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 1,916millionin2024[40]−Operatingprofit(GAAP)increasedby31,916 million in 2024[40] - Operating profit (GAAP) increased by 3% to 1,076 million in 2025 from 1,047millionin2024[40]−Operatingprofitmargin(GAAP)improvedto21.91,047 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 16,046millionattheendof2024[27]−Non−servicerelatedpostretirementcosts(GAAP)rosesignificantlyto16,046 million at the end of 2024[27] - Non-service related postretirement costs (GAAP) rose significantly to 72 million in 2025 from 22millionin2024[40]−Other(income)expense,net(GAAP)decreasedto22 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]