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CL · Colgate-Palmolive

30 filings

10-K

CL 10-K Annual Reports

Colgate-Palmolive - 30 annual reports

Filing record · 2016–202610-K1210-Q338-K102

2025
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2025
Colgate-Palmolive's 2025 results show modest top-line growth masked by a large non-cash impairment. Net sales rose 1.4% to $20,382 million, driven by 2.1% net price increases, partially offset by 0.4% volume declines and a 0.3% FX headwind. Organic sales grew 1.4%, with Oral, Personal and Home Care up 1.5% and Hill's Pet Nutrition up 1.2% organically. Gross margin slipped to 60.1% (down 40 bps reported) as raw and packaging material inflation of roughly 420 bps was only partly offset by funding-the-growth savings of 260 bps. GAAP operating profit fell 23% to $3,306 million because of a $919 million goodwill and intangible impairment tied to the skin health business (primarily Filorga), along with a $99 million ERISA settlement charge. Excluding these and other items, operating profit was flat at $4,347 million and diluted EPS was $3.69 non-GAAP versus $2.63 GAAP. Management expects softness in its categories seen in 2025 to continue into 2026, citing macroeconomic pressure, high interest rates, FX volatility and tariff-related trade developments. It is also pursuing a three-year Strategic Growth and Productivity Program with estimated pre-tax charges of $200 to $300 million through 2028, and it is operating under its 2030 strategy. Cash generation remained solid, with operating cash flow up 2% to $4,198 million and capex of $564 million. Shareholder returns were significant: dividends paid totaled $1,823 million (quarterly dividend raised to $0.52 from $0.50) and buybacks totaled $1,210 million. Total debt was stable at about $7.99 billion. The company's shareholders' equity fell to a near-zero $54 million after the impairment, buybacks and dividends, so investors should focus on cash flow and leverage rather than book equity. For investors, the key takeaways are that underlying profitability held up despite input-cost inflation, that 2026 growth is expected to remain soft, and that the impairment reflects weakness in the skin health portfolio, particularly in China, rather than a broader franchise problem. Walmart represents about 11% of net sales, and the Venezuela and Russia exposures are noted but are not material to the consolidated statements.
Feb 23, 2026
2024
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2024
Colgate-Palmolive's FY2024 10-K shows a company that grew reported net sales 3.3% to $20.1 billion, with organic sales up 7.4% driven by 3.1% volume growth and 4.4% net price increases, partly offset by a 4.1% foreign exchange headwind. Gross margin expanded to 60.5% (60.6% non-GAAP) on funding-the-growth savings and pricing, while SG&A rose to 38.5% of sales as advertising spend increased 14.7% to $2.72 billion (13.5% of sales). GAAP operating profit rose 7% to $4.27 billion, and non-GAAP operating margin improved 100 bps to 21.7%. GAAP diluted EPS was $3.51 (non-GAAP $3.60, up 11%), versus $2.77 GAAP in 2023, which was depressed by the ERISA litigation charge and a foreign tax matter. Cash generation strengthened, with operating cash flow up 10% to $4.1 billion and capex falling to $561 million. The company returned about $3.5 billion to shareholders through $1.79 billion in dividends and $1.74 billion in buybacks, which pushed total equity down to $544 million and left the balance sheet heavily leveraged relative to book value. Total debt eased to about $7.9 billion. Hill's Pet Nutrition was the standout segment, with operating margin up 270 bps to 21.5%, while Latin America delivered strong organic growth of 16.8% despite severe currency headwinds. Key risks flagged for investors include ongoing geopolitical tensions (Ukraine, the Middle East, China-Taiwan), new U.S. tariffs announced in February 2025, rising advertising and input-cost pressure, retailer concentration (Walmart at roughly 11% of sales), hyperinflation in Argentina and Türkiye, and a pending ERISA judgment that may require a 2025 pension cash contribution. Management expects a challenging macro environment and volatile category growth in 2025.
Feb 13, 2025
2023
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2023
Colgate-Palmolive's 2023 results were driven by pricing rather than volume. Worldwide Net sales rose 8.5% to $19,457 million, built on net selling price increases of 10.0% that offset volume declines of 0.5% and a 1.0% foreign exchange headwind. Organic sales grew 8.5%. Gross margin expanded 120 basis points to 58.2%, supported by pricing and funding-the-growth savings, though raw and packaging material inflation of 480 bps was a significant drag. Reported operating profit rose 38% to $3,984 million, but that comparison is flattered by the 2022 Filorga impairment; excluding one-time items, operating profit grew 10% to $4,036 million and the margin reached 20.7%. Diluted EPS was $2.77 on a GAAP basis and $3.23 on a non-GAAP basis, up 9% from $2.97. The quality of earnings warrants attention. Oral, Personal and Home Care organic growth of 8.0% was strong, with toothpaste global share up 1.1 points to 41.1%. Hill's Pet Nutrition organic growth of 10.5% was offset by a 410 bps margin compression to 18.8%, driven by raw material costs and private label mix from recent acquisitions. Several discrete items affected 2023 GAAP results, including a $267 million ERISA pension charge, a $148 million foreign tax matter (partly offset by a $126 million net tax benefit in the reconciliation), and a $25 million Fabuloso recall. Cash generation improved, with operating cash flow of $3,745 million versus $2,556 million, helped by working capital, while capital expenditures were $705 million. Total debt fell to $8,549 million, and Colgate returned about $1.75 billion in dividends and $1.13 billion in buybacks. Looking ahead, management expects continued challenging macro conditions, elevated inflation and higher interest rates, along with category volatility that makes near-term growth difficult to forecast. Key risks include foreign currency exposure, given that about two-thirds of sales come from outside the U.S., heightened competition and retailer concentration (Walmart is roughly 11% of sales), geopolitical disruption from the Ukraine and Israel-Hamas wars, and continued litigation, including talc claims and a Brazilian tax dispute. The 2022 Global Productivity Initiative is expected to conclude by mid-2024 with annualized savings of $90 to $110 million pretax.
Feb 15, 2024
2022
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2022
Colgate-Palmolive's FY2022 10-K shows a company with solid underlying momentum but GAAP earnings pressured by a large non-cash impairment. Worldwide Net sales rose 3.0% to $17,967 million, driven by net selling price increases of 9.5%, partially offset by volume declines of 2.0% and a 4.5% foreign exchange headwind. Organic sales grew 7.0%. Hill's Pet Nutrition was the standout, with Net sales up 12.0% and organic growth of 13.0%, while Oral, Personal and Home Care sales grew only 1.0% on a reported basis (5.5% organic) and Europe was weak. Gross margin fell 260 bps to 57.0% as raw and packaging material inflation (810 bps) outran pricing (360 bps) and productivity savings (220 bps). GAAP operating profit fell 13% to $2,893 million, driven by a $721 million pretax goodwill and intangible impairment tied to the Filorga skin health business. Excluding that charge and other items, operating profit declined 5% to $3,681 million, and non-GAAP diluted EPS fell 7% to $2.97 from $3.21. GAAP diluted EPS was $2.13 versus $2.55 in 2021. Operating cash flow dropped to $2,556 million from $3,325 million, largely due to working capital build, and free cash flow after $696 million of capex was roughly $1.9 billion. The company paid $1,691 million in dividends (up to $1.86 per share) and repurchased $1,308 million of stock. Total debt rose to $8,766 million after acquisitions, including Red Collar Pet Foods for $719 million. Management expects a continued difficult cost environment in 2023 with additional pricing that may weigh on volumes, and it flagged ongoing risks from China, travel retail, Ukraine-related disruption, and a multi-year 2022 Global Productivity Initiative with $200-240 million of cumulative charges and $90-110 million of annualized savings.
Feb 16, 2023
2021
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2021
Colgate-Palmolive's 2021 10-K shows a year of solid top-line growth overshadowed by margin compression and a non-cash impairment. Worldwide Net sales rose 6.0% to $17,421 million, driven by 4.5% organic growth (1.0% volume, 3.5% net selling price) plus 1.5% favorable foreign exchange. Hill's Pet Nutrition was the standout, growing 15.0% with 13.5% organic growth, while Oral, Personal and Home Care grew 4.0% (2.5% organic), with Oral Care gaining and Personal Care softening. Profitability weakened. Gross margin fell 120 bps to 59.6% as raw and packaging material inflation (about 450 bps) outran pricing and funding-the-growth savings. GAAP operating profit declined 14% to $3,332 million, but this includes a $571 million pre-tax impairment of Filorga goodwill and trade name, which the company attributes to COVID-19 effects on duty-free, travel retail and pharmacy channels. Excluding special items, operating margin was 22.3%, down 120 bps, and non-GAAP diluted EPS rose 5% to $3.21. GAAP diluted EPS fell to $2.55 from $3.14. Cash generation and capital returns remained substantial but softer. Operating cash flow fell to $3,325 million from $3,719 million on working capital changes. Capex rose to $567 million, and the company paid $1,679 million in dividends (up to $1.79 per share) and repurchased $1,320 million of stock. Management plans a 2022 Global Productivity Initiative with pre-tax charges of $200 to $240 million and annualized savings of $90 to $110 million, and expects the cost environment to remain difficult in 2022.
Feb 17, 2022
2020
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2020
Colgate-Palmolive's 2020 10-K shows a company that grew through the COVID-19 pandemic. Worldwide Net sales rose 5.0% to $16,471 million, driven by 5.5% volume growth and 3.0% net selling price increases, partly offset by a 3.5% foreign exchange headwind. Organic sales grew 7.0%. Pantry-loading boosted categories like liquid hand soap, dish liquid, bar soap and cleaners, though management expects some of that demand to normalize and warns of heightened competition. Gross margin expanded 140 bps to 60.8% on GAAP, supported by funding-the-growth savings, while advertising spend rose 15% to $1,948 million, pressuring SG&A. GAAP diluted EPS was $3.14 versus $2.75 in 2019; excluding one-time items, non-GAAP diluted EPS rose 8% to $3.06. The GAAP results were lifted by a $71 million tax benefit and a $16 million restructuring reversal, partly offset by a $23 million debt extinguishment loss. Cash generation was strong, with operating cash flow up to $3,719 million from $3,133 million. Capital expenditures were $410 million, and dividends paid were $1,654 million. Management guided capex to 3.0% to 3.5% of sales for 2021. Share repurchases were moderated during the year because of the hello and Filorga acquisitions and the pandemic-driven pause. Total debt declined to $7,601 million. Management expects share repurchases to return to historical levels in 2021. Risks flagged in the filing include concentrated retailer power (Wal-Mart is about 12% of sales), exposure to emerging markets (about 45% of sales), commodity and logistics cost inflation, a Brazilian tax dispute totaling about $113 million, and a Hill's voluntary recall class action that was settled. Litigation exposure is disclosed as $0 to about $425 million in reasonably possible losses above accruals, though management does not expect a material impact.
Feb 18, 2021
2019
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2019
Colgate-Palmolive's 2019 Form 10-K shows a company with flat reported results but solid underlying momentum. Worldwide Net sales rose 1.0% to $15,693 million, driven by 4.0% organic sales growth (volume +2.5%, net price +2.0%) that was largely offset by a 3.5% foreign exchange headwind. Reported operating profit fell 4% to $3,554 million and diluted EPS was flat at $2.75, but excluding Global Growth and Efficiency Program charges and other one-time items, non-GAAP diluted EPS declined 5% to $2.83. Gross margin was stable at 59.4%, while raw and packaging material inflation (roughly 300 bps) was offset by funding-the-growth savings and pricing. Advertising investment rose to 10.8% of sales, pressuring SG&A and operating margin, which fell 120 bps to 22.6% on a GAAP basis. The balance sheet and capital allocation shifted notably in 2019. Colgate closed the Filorga skin health acquisition (about $1.7 billion) and the Nigeria joint venture, and in January 2020 agreed to buy Hello Products for $351 million. Total debt rose to $7.8 billion from $6.4 billion, and management moderated share repurchases in Q4 2019 to reduce leverage into 2021. Operating cash flow was $3.1 billion, capital spending fell to $335 million, and the dividend was raised to $0.43 per quarter. The Global Growth and Efficiency Program concluded in 2019 with cumulative pretax charges of $1.85 billion against targeted annual savings of $640 to $660 million. The key risks flagged for investors are the 2020 outlook (management expects category growth below historical levels and near-term COVID-19 impact), continued retailer and eCommerce pressure, and a set of legal matters, most notably Brazilian tax assessments totaling about $152 million plus other claims, a talc-related litigation docket, and a Hill's Pet Nutrition recall with 37 putative class actions. Management believes none of these will be material on its own, but the reasonably possible loss range in excess of accruals is up to about $225 million.
Feb 21, 2020
2018
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2018
Colgate-Palmolive's 2018 10-K shows a company with steady but modest top-line growth and margin pressure. Worldwide Net sales were $15,544 million, up 0.5% from 2017, driven by 1.0% volume growth and 0.5% net selling price increases, partly offset by 1.0% negative foreign exchange. Organic sales grew 0.5%, with Hill's Pet Nutrition (+3.5% organic) the strongest contributor and Oral, Personal and Home Care flat on an organic basis. Gross margin fell about 90 basis points on an adjusted basis to 59.6%, driven mainly by roughly 340 bps of higher raw and packaging material costs. Operating profit was essentially flat at $3,694 million on a GAAP basis, but non-GAAP operating profit declined 4% to $3,846 million. Latin America (operating profit down 15%) and Asia Pacific (down 8%) were the weakest segments. Bottom-line results were supported by a lower effective tax rate. Diluted EPS was $2.75 on a GAAP basis versus $2.28 in 2017, but the 2017 comparison was distorted by the $275 million U.S. tax reform charge. Excluding restructuring charges, the 2018 tax benefit and the 2018 U.S. tax reform adjustment, non-GAAP diluted EPS rose 3% to $2.97. Cash generation was steady, with operating cash flow of $3,056 million, but free cash flow was constrained by $1,170 million of investing outflows, including $730 million for the PCA Skin and Elta MD acquisitions. The company returned capital through $1,591 million in dividends and $1,238 million in share repurchases. The filing highlights ongoing headwinds: heightened competition, retailer concentration (Wal-Mart is about 11% of sales), e-commerce disruption, commodity inflation, and the Global Growth and Efficiency Program, which runs through 2019 with projected annual pretax savings of $590 to $635 million once fully implemented. Long-term debt is $6,354 million against equity that is slightly negative at about -$102 million, a function of heavy buybacks and accumulated pension and translation losses rather than balance sheet distress. The company also faces contingent exposure, including Brazilian tax matters and talc litigation, with reasonably possible losses in excess of accruals of $0 to about $225 million.
Feb 21, 2019
2017-A
Colgate-Palmolive Annual Report (Amendment), Year Ended Dec 31, 2017
Colgate-Palmolive's 2017 10-K shows a company with modest top-line growth but margin and earnings pressure. Worldwide Net sales rose 1.5% to $15,454 million, driven by 0.5% volume growth, 0.5% net price and 0.5% favorable FX, while organic sales grew 1.0%. GAAP operating profit fell 6% to $3,589 million, with the operating margin down 210 bps to 23.2%. The decline was driven by higher raw and packaging material costs, a 100 bp rise in SG&A (advertising up 10.2% to $1,573 million) and $333 million of Global Growth and Efficiency Program charges. Diluted EPS was $2.28 GAAP versus $2.72 in 2016, and $2.87 on a non-GAAP basis, which excludes the $275 million provisional U.S. tax reform charge and program costs. Non-GAAP EPS rose 2%, the main positive in an otherwise soft year. Balance sheet and cash flow remain solid but the mix shifted. Operating cash flow was $3,054 million, down from $3,141 million, mainly on the timing of tax payments. Capex was $553 million and dividends paid were $1,529 million ($1.59 per share, up from $1.55). The company repurchased $1,399 million of stock under its $5 billion 2015 program. Total debt was $6,577 million, and shareholders' equity remains near zero at $(60) million after buybacks and the accumulated OCI drag. The company guides to a 2018 effective tax rate of 26% to 27% and expects restructuring savings of $90 to $120 million in 2018. Management describes the environment as highly challenging, with slow category growth, heightened competition from local and multinational rivals, retailer de-stocking and e-commerce disruption. About 75% of sales come from outside the U.S., and about 50% from emerging markets, which adds currency and volatility risk. Key legal exposures include Brazilian tax assessments of roughly $165 million plus $74 million, competition fines in France and Greece, and talc-related asbestos suits that rose to 193 cases. Management does not believe these will have a material effect on financial position.
Feb 21, 2018
2017
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2017
Colgate-Palmolive's 2017 10-K shows a company with modest top-line growth but margin and earnings pressure. Worldwide Net sales rose 1.5% to $15,454 million, driven by volume (+0.5%), pricing (+0.5%) and favorable FX (+0.5%); organic sales grew 1.0%. Gross margin was flat at 60.0% on a GAAP basis (60.5% non-GAAP, up 20 bps), but GAAP operating profit fell 6% to $3,589 million, with the operating margin dropping to 23.2% from 25.3%. Management attributed the pressure mainly to advertising investment, which rose 10.2% to $1,573 million (10.2% of sales vs. 9.4%), plus higher raw and packaging material costs. Excluding Global Growth and Efficiency Program charges and other items, non-GAAP operating profit declined 2%. GAAP diluted EPS was $2.28, down from $2.72, reflecting $246 million of aftertax restructuring charges and a $275 million provisional charge from U.S. tax reform (TCJA). Excluding these items, non-GAAP diluted EPS rose 2% to $2.87. The GAAP effective tax rate was 37.7%, while the non-GAAP rate was 29.5%; management guides to a 26%-27% rate for 2018. Cash generation remained solid with operating cash flow of $3,054 million, though it declined from $3,141 million. Capital returns were significant: dividends paid totaled $1,529 million ($1.59 per share, up from $1.55) and share repurchases totaled $1,399 million, with the dividend raised to $0.40 quarterly. Leverage is moderate, with total debt of $6,577 million against cash of $1,535 million. Management describes the environment as highly challenging, citing slow category growth, heightened competition from local and multinational players, retailer de-stocking and e-commerce disruption. Roughly 75% of sales come from outside the U.S., exposing the company to FX and emerging-market volatility. Key watch items include the Global Growth and Efficiency Program (targeting $560-635 million of annual pretax savings through 2019, with cumulative charges of $1.73-1.89 billion), the finalization of the TCJA charge in 2018, the pending Brazilian tax disputes (about $165 million plus $74 million in assessments), and the French and Greek competition fines.
Feb 15, 2018
2016
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2016
Colgate-Palmolive's 2016 10-K shows a company whose reported results were distorted by large one-time items, but whose underlying business stabilized. Reported net sales fell 5.0% to $15,195 million, driven by a 4.5-point foreign exchange headwind, while organic sales grew 4.0% on 2.5% net price increases, with volume down 3.0% reported (up 1.5% excluding divestitures and Venezuela). GAAP operating profit rose 38% to $3,837 million, but this was flattered by lower 2015 charges (the $1,084 million Venezuela deconsolidation) and a $97 million gain on sale of Mexico land. On a non-GAAP basis, operating profit was essentially flat at $3,985 million versus $3,988 million, and non-GAAP diluted EPS was flat at $2.81. The GAAP operating margin of 25.3% compares with a non-GAAP margin of 26.2%, up 130 basis points, driven mainly by a 160 bps improvement in gross margin from funding-the-growth savings and pricing. The balance sheet and cash flow profile remained solid but with less financial flexibility than the earnings headline suggests. Operating cash flow rose to $3,141 million, capital expenditures fell to $593 million, and the company returned $1,508 million in dividends and $1,335 million in buybacks. Total shareholders' equity of Colgate-Palmolive was slightly negative at $(243) million, a consequence of years of buybacks and the Venezuela write-down rather than operating weakness. Long-term debt was $6,520 million. Key risks include roughly 75% of sales from outside the U.S., emerging-market volatility, Wal-Mart concentration at about 11% of sales, regulatory pressure on triclosan and other ingredients, a Brazilian tax dispute with roughly $143 million of assessments, and the 2012 Restructuring Program, which carries about $180 to $360 million of further 2017 charges.
Feb 23, 2017
2015
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2015
Colgate-Palmolive's 2015 10-K shows a year dominated by a non-cash accounting charge rather than weak operations. Worldwide Net sales fell 7.0% to $16,034 million, but organic sales (excluding foreign exchange, acquisitions and divestments) rose 5.0%, driven by 1.5% volume growth and 3.0% net selling price increases. Foreign exchange was the main drag, subtracting 11.5 points. Reported GAAP operating profit fell 22% to $2,789 million, largely because of a $1,084 million pretax charge from deconsolidating Venezuela (CP Venezuela), which is now carried at cost after the company concluded it can no longer control the operation or access U.S. dollars for imports and dividends. Excluding this and other special items, non-GAAP operating profit declined 5% to $3,988 million, and non-GAAP diluted EPS fell 4% to $2.81. GAAP diluted EPS was $1.52. Underlying performance was mixed by segment. Oral, Personal and Home Care organic sales grew 4.5%, led by Oral Care toothpaste and manual toothbrushes, and Hill's Pet Nutrition organic sales grew 6.0%, driven by Prescription Diet. Europe/South Pacific and Africa/Eurasia had weaker reported results, and Latin America's reported sales fell 9.5% even though organic sales rose 9.5%. Management reduced advertising spending 16.4% to $1,491 million, which helped margins, but it also flagged persistent cost pressure from raw and packaging materials, which were tied to foreign exchange transaction costs. Cash generation remained solid, with operating cash flow of $2,949 million, while dividends ($1,493 million) and buybacks ($1,551 million) were funded partly with new debt. Total debt rose to $6,571 million. The 2012 Restructuring Program was extended through 2017, with expected 2016 pretax charges of $285 to $435 million. For investors, the key questions are whether organic growth can persist as the restructuring savings build, how much further foreign exchange and Venezuela-related risk remains, and whether the company can keep its dividend growth and buyback pace while leverage increases. Litigation risk is also notable, including a Brazilian tax dispute, European competition fines, talc-related lawsuits and a pending $2.5 billion N8 damages claim, though management believes the claims lack merit and does not expect a material effect on financial position.
Feb 18, 2016
2014
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2014
Colgate-Palmolive's 2014 10-K shows a company with flat-to-slightly-down reported results but solid underlying performance. Worldwide Net sales fell 1.0% to $17,277 million, as 5.0% organic sales growth (volume +3.0%, net pricing +2.0%) was more than offset by a 6.0% foreign exchange headwind, driven largely by Latin America and Venezuela. GAAP operating profit was flat at $3,557 million, but excluding restructuring, Venezuela remeasurement losses, European competition fines and other items, non-GAAP operating profit rose 2% to $4,215 million, and non-GAAP diluted EPS grew 3% to $2.93. GAAP diluted EPS fell 1% to $2.36, weighed down by $327 million of Venezuela remeasurement losses and a $66 million foreign tax charge. The company's strategic focus is on Oral, Personal and Home Care (about 87% of sales) plus Hill's Pet Nutrition (about 13%), with Oral Care (toothpaste, toothbrushes) as the main growth engine. Management's 2012 Restructuring Program has been expanded, with cumulative pretax charges now estimated at $1,285 to $1,435 million and annual savings targeted at $405 to $475 million by 2016. Gross margin slipped to 58.5% as raw material inflation (about 290 bps) was only partly offset by funding-the-growth savings, while advertising spending was cut 5.7%, which lifted operating margins. Investors should weigh several risks: heavy exposure to emerging markets (over 50% of sales) and Venezuela, where price controls and currency controls limit earnings and about $955 million of investment is at risk; a growing list of competition-law fines and investigations in Europe; and talc and triclosan litigation and regulatory scrutiny. Cash generation remained solid, with operating cash flow of $3,298 million, and the board authorized a new $5 billion share repurchase program on February 19, 2015.
Feb 19, 2015
2013
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2013
Colgate-Palmolive's 2013 10-K shows a company with solid underlying momentum but a reported earnings decline driven by one-time items. Worldwide Net sales rose 2.0% to $17,420 million, with organic sales (excluding foreign exchange, acquisitions and divestments) up 6.0%, driven by volume growth of 5.0%. However, the 4.0% negative foreign exchange impact offset much of that growth. GAAP Operating profit fell 9% to $3,556 million, and GAAP diluted EPS dropped 7% to $2.38. Excluding restructuring, the Venezuela devaluation charge, and other special items, non-GAAP diluted EPS rose 6% to $2.84 and non-GAAP operating profit rose 3% to $4,140 million. The main GAAP drags were the 2012 Restructuring Program (a four-year Global Growth and Efficiency Program with $1.1-1.25 billion in expected cumulative pretax charges and $365-435 million in annual pretax savings by year four), and a one-time $172 million pretax charge from the February 2013 Venezuela bolivar devaluation. Gross margin expanded to 58.6% from 58.1%, and non-GAAP gross margin reached 58.8%, helped by funding-the-growth cost savings. Segment performance was strong in Asia (organic sales up 10.5%) and Latin America was mixed, with Venezuela creating significant margin pressure. Pet Nutrition (Hill's) grew 2.5% in sales but operating margin contracted 180 bps to 25.5% on higher raw material costs. Investors should monitor forward risks, particularly Venezuela. Management estimates a further one-time aftertax loss of $180-200 million (about $0.19-0.21 per diluted share) if the SICAD exchange rate stays at 11.70 bolivares per dollar in Q1 2014, plus ongoing 2014 impacts of $0.11-0.14 per share. Other watch items include a tax assessment and litigation exposure (reasonably possible losses up to about $250 million beyond accruals), a new Venezuelan 30% profit margin cap, and multiple European competition-law matters. Cash generation remained healthy, with operating cash flow of $3,204 million, dividends of $1,382 million, and share repurchases of $1,521 million.
Feb 20, 2014
2012
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2012
Colgate-Palmolive's 2012 10-K (filed February 21, 2013) shows a company growing steadily on a reported basis, with worldwide Net sales up 2.0% to $17,085 million. Organic sales grew 6.0%, but negative foreign exchange of 4.0% held reported growth down. Volume rose 3.0% and net selling prices rose 3.0%. GAAP diluted EPS was $5.15 versus $4.94 in 2011, and non-GAAP diluted EPS (excluding restructuring, Mexico land sale costs and business realignment charges) was $5.36, up 7%. Operating margin on a GAAP basis was 22.8%, and gross margin improved to 58.1%, aided by funding-the-growth savings and pricing, partly offset by commodity inflation. The key forward-looking issues are the new four-year 2012 Restructuring Program, with total pretax charges of $1,100 to $1,250 million and annual savings of $365 to $435 million by year four, and the Venezuela devaluation in February 2013. The devaluation will create an approximately $120 million aftertax loss in Q1 2013, about $0.25 per share, plus ongoing EPS drag of $0.05 to $0.07 per quarter. Management also flagged heightened competition, retailer concentration, and European competition-law fines and investigations. Balance sheet and cash generation remain solid, with operating cash flow of $3,196 million, $1,277 million in dividends and $1,943 million in buybacks. Total debt was $5,230 million at year-end. For investors, the 2012 results show resilient underlying growth, but reported results carry currency and Venezuela headwinds, and the restructuring is expected to pay back over time rather than immediately. Investors should weigh the near-term charges against the medium-term savings and monitor emerging-market exposure, since roughly 80% of sales come from outside the U.S.
Feb 21, 2013
2011
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2011
Colgate-Palmolive's 2011 10-K shows a year of top-line growth and higher margins, but with pressure on gross margin from commodity costs. Net sales rose 7.5% to $16,734 million, driven by 3.5% volume growth, 1.0% net pricing and a 3.0% favorable foreign exchange impact; organic sales grew 4.0%. GAAP operating profit rose 10% to $3,841 million, though this was flattered by a $207 million gain on the Colombia detergent divestment. Excluding one-time items, operating profit grew about 2% to $3,858 million. Diluted GAAP EPS was $4.94 (up from $4.31), and non-GAAP diluted EPS was $5.03 (up 4%). Profitability mix was mixed. Gross margin fell to 57.3% from 59.1% as global commodity inflation (about 390 bps) outweighed funding-the-growth savings (190 bps). Management offset some of this with advertising discipline, which fell as a share of sales to 10.4%. Cash generation weakened: operating cash flow fell to $2,896 million from $3,211 million, mainly due to higher voluntary pension contributions. Capex was $537 million and the company spent $966 million on the Sanex acquisition, with total debt rising to $4,810 million. Shareholder returns remained strong, with $1,203 million in dividends and $1,806 million in buybacks, and the quarterly dividend was raised to $0.58. Key risks remain concentrated in Venezuela (about 5% of sales, with new price controls and currency devaluations), in European competition-law fines and investigations, and in the Brazilian tax disputes (combined exposure cited at up to roughly $200 million in reasonably possible losses beyond accruals). About 80% of sales come from outside the U.S., so currency and emerging-market volatility remain central to the investment case.
Feb 23, 2012
2010
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2010
Colgate-Palmolive closed 2010 with net sales of $15,564 million, up 1.5% from 2009, driven by 3.0% volume growth and 3.0% organic sales growth, though a 1.5% negative foreign exchange impact offset part of the gain. Oral, Personal and Home Care sales rose 2.0% to $13,484 million, while Hill's Pet Nutrition declined 2.5% to $2,080 million amid heightened competition and volume declines. Reported operating profit fell 3% to $3,489 million and diluted EPS declined to $4.31 from $4.37, primarily due to a one-time $271 million charge from adopting hyperinflationary accounting for Venezuela, $86 million in termination benefits, and higher advertising. Excluding these items, non-GAAP operating profit rose 5% to $3,796 million. Cash generation remained solid, with operating cash flow of $3,211 million, though it declined from $3,277 million due to higher working capital. The company returned significant capital to shareholders, paying $1,142 million in dividends (common dividend raised to $0.53 quarterly) and repurchasing $2,020 million of stock under a new 40 million share program. Total debt rose modestly to $3,424 million, and management expects cash flow to fund operations, debt service, dividends, and capital expenditures. Key risks flagged in the filing include Venezuela's currency devaluations and exchange controls, intensifying competition from larger multinationals, retailer consolidation, commodity cost volatility, and European competition-law investigations with pending fines. Management maintains that the Brazilian tax disputes and European competition matters are not expected to have a material impact on financial position, though the company acknowledges outcomes could affect quarterly or annual results.
Feb 24, 2011
2009
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2009
Colgate-Palmolive's fiscal 2009 results show a company whose core businesses were healthy despite a difficult macro backdrop. Worldwide net sales were essentially flat at $15,327 million (vs. $15,330 million in 2008), as volume growth of 0.5% and net selling price increases of 6.0% were offset by a 6.5% negative foreign exchange impact. Organic sales grew 6.5%. Operating profit rose 17% to $3,615 million, helped by pricing, cost savings, lower commodity costs, and the absence of 2008 restructuring charges, and diluted EPS increased to $4.37 from $3.66. Net cash from operations rose to $3,277 million from $2,302 million, and the company paid $981 million in dividends and repurchased $1,063 million of stock. The key watch items for investors are Venezuela and Brazil. Venezuela was designated hyper-inflationary effective January 1, 2010, and the government devalued its currency on January 8, 2010. Management estimates the devaluation will reduce 2010 diluted EPS by $0.06 to $0.10, and a one-time charge of about $275 million was recorded through other comprehensive income. Venezuela represented 6% of 2009 consolidated sales. Separately, Colgate faces significant Brazilian tax assessments (roughly $115 million and $69 million at current exchange rates) that management is contesting, and several European competition investigations with fines that have in some cases reached hundreds of millions of dollars. The balance sheet strengthened, with long-term debt falling to $2,821 million and total debt to $3,182 million, and shareholder equity rising to $3,116 million from $1,923 million. The company signaled confidence through a 2010 dividend increase to $0.53 per quarter and a new 40 million share repurchase authorization, while also projecting 2010 capital expenditures of about 3.5% of sales.
Feb 25, 2010
2008
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2008
Colgate-Palmolive Company's 2008 10-K filing reflects a company demonstrating resilience and growth amidst a challenging global economic environment. The company reported a 11.0% increase in worldwide net sales to $15.3 billion, driven by a combination of volume growth, price increases, and positive foreign exchange impacts. This growth was observed across both its Oral, Personal and Home Care segment and its Pet Nutrition segment, with particularly strong performance in Latin America and Greater Asia/Africa. The company successfully finalized its significant 2004 Restructuring Program, which aimed to enhance global leadership positions and streamline operations. This program is expected to contribute to future cash flows and profitability. Despite facing risks from international operations, currency fluctuations, and the broader economic downturn, Colgate-Palmolive maintained robust operations and a strong focus on innovation and cost-saving initiatives. The company also continued its commitment to shareholder returns through consistent dividend payments and active share repurchase programs.
Feb 27, 2009
2007
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2007
Colgate-Palmolive Company's 2007 10-K filing reveals a company with strong global brand recognition and a diversified product portfolio across Oral, Personal, and Home Care, as well as Pet Nutrition segments. The company demonstrated robust sales growth driven by volume increases and positive foreign exchange impacts, despite divestitures of non-core businesses. Strategic initiatives, including a significant 2004 Restructuring Program aimed at operational efficiency and cost savings, are progressing, with projected annual savings of $425-475 million. Financially, Colgate-Palmolive reported increased net income and earnings per share in 2007. The company maintains a strong cash flow from operations, enabling consistent dividend payments and significant share repurchases, reflecting a commitment to shareholder returns. While facing competitive market conditions and raw material cost volatility, Colgate-Palmolive's management expressed confidence in its well-positioned global presence and brand strength to drive future growth and profitability.
Feb 28, 2008
2006
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2006
Colgate-Palmolive Company's 2006 10-K filing highlights strong global sales growth, driven by unit volume increases and strategic pricing. The company operates across two primary segments: Oral, Personal, and Home Care, and Pet Nutrition, with a dominant position in oral care globally. Significant investments in research and development and a focused strategy on higher-margin businesses, including the acquisition of Tom's of Maine, underscore their commitment to innovation and market leadership. The company is navigating a complex global market by focusing on operational efficiencies and cost-saving initiatives, exemplified by its ongoing 2004 Restructuring Program. This program aims to streamline manufacturing and supply chains to enhance long-term profitability. Despite facing competitive pressures and risks associated with international operations, Colgate-Palmolive demonstrates a robust financial position, evidenced by consistent cash flow generation and a commitment to returning value to shareholders through dividends and share repurchases.
Feb 23, 2007
2005
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2005
Colgate-Palmolive Company's 2005 10-K filing highlights a company focused on global leadership in oral, personal, and home care, alongside its Pet Nutrition segment. The company demonstrated solid sales growth, driven by both volume and strategic pricing, with notable performance in Latin America and Europe. A significant ongoing initiative is the 2004 Restructuring Program, aimed at streamlining operations, reducing manufacturing facilities, and optimizing the workforce. While this program incurred charges in 2005, it is expected to yield substantial cost savings and support increased profitability by 2008. Colgate-Palmolive continues to invest in innovation and new product development, particularly in its higher-margin oral care business, and is actively managing its international operations and associated currency risks.
Feb 24, 2006
2004
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2004
Colgate-Palmolive Company's 2004 10-K filing reveals a company focused on strengthening its core global brands in Oral, Personal, and Home Care, alongside its Pet Nutrition segment. The company experienced net sales growth of 7.0%, primarily driven by a 5.5% volume increase, indicating solid consumer demand. However, operating profit saw a 2% decline due to increased advertising and promotional spending and rising raw material costs, which more than offset cost-reduction initiatives. A significant development is the December 2004 launch of a four-year restructuring and business-building program aimed at optimizing the global supply chain and enhancing sales and marketing efforts in key developing markets. This program is expected to incur substantial charges but generate significant annual savings. The acquisition of GABA Holding AG in June 2004 also bolstered the Oral Care segment in Europe. Financially, the company maintained strong operating cash flow and continued to return value to shareholders through dividends and share repurchases. Despite the planned restructuring charges and competitive market pressures, management expressed confidence in its strategic positioning and ability to drive long-term shareholder value.
Feb 25, 2005
2003
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2003
Colgate-Palmolive Company's 2003 10-K filing highlights a strong financial year characterized by consistent growth across its core segments: Oral, Personal, Household Surface and Fabric Care, and Pet Nutrition. The company achieved a significant 6.5% increase in worldwide net sales, driven by a healthy 3.5% volume growth and a positive foreign exchange impact, underscoring its global brand strength and market penetration in over 200 countries. Profitability saw a notable increase, with operating profit rising 8% and net income growing to $1.42 billion. This performance was supported by strategic cost-reduction initiatives, improved supply chain efficiencies leading to a higher gross profit margin, and a strategic focus on higher-margin businesses like Oral Care and Pet Nutrition. The company also demonstrated strong cash flow generation, enabling increased dividend payments and share repurchases, while maintaining a robust credit rating. The planned acquisition of GABA Holding AG signaled a forward-looking strategy to further strengthen its leading position in the oral care market.
Mar 12, 2004
2002
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2002
Colgate-Palmolive Company (CL) demonstrated solid financial performance in 2002, with worldwide net sales increasing by 2.5% to $9.3 billion, driven by a 4.5% volume growth. The company's core Oral, Personal, Household Surface and Fabric Care segment saw a 2.0% net sales increase, while the Pet Nutrition segment experienced robust growth of 7.0%. Profitability improved, with gross profit margin rising to 54.6% due to global sourcing, manufacturing efficiencies, and a focus on higher-margin products. Operating profit increased by 10% to $2.01 billion, reflecting strong volume and cost-saving initiatives. Net income also saw a healthy rise of 12.4% to $1.29 billion, translating to diluted earnings per share of $2.19, up from $1.89 in the prior year. The company maintained a strong balance sheet and generated significant operating cash flow, which was used to fund capital expenditures, increase dividends, and repurchase shares. Geographically, North America and Europe showed strong net sales growth, while Latin America experienced a decline primarily due to foreign currency impacts. The company also highlighted its ongoing commitment to innovation with new product introductions contributing to volume gains across its segments. Colgate-Palmolive continues to manage its global operations effectively, navigating competitive landscapes and currency fluctuations, while prioritizing shareholder returns through dividends and share buybacks, positioning it for continued growth.
Mar 24, 2003
2001
Colgate-Palmolive Annual Report, Year Ended Dec 31, 2001
Colgate-Palmolive's fiscal 2001 10-K shows a company growing volume steadily while improving margins and returning substantial cash to shareholders. Net sales rose 0.7% to $9,427.8 million (1.5% excluding divestments, 5.5% excluding currency effects), driven by 5.0% volume growth. EBIT increased 5% to $1,834.8 million, and diluted EPS rose 11% to $1.89 from $1.70. Gross margin expanded to 55.1% from 54.4%, supported by global sourcing and cost-reduction programs. Operating cash flow rose 4% to $1,599.6 million, and free cash flow reached $862.7 million, which funded $1,230.2 million of share repurchases and $396.7 million of dividends. By segment, Oral, Personal and Household Care remains the core business at 88% of sales, with Latin America and North America the strongest performers. Pet Nutrition (Hill's) grew 5.5% to $1.18 billion with EBIT up 16%. Currency weakness, particularly in Latin America and Europe, remains the main drag on reported results. Management expects 2002 market conditions to be broadly similar to 2001. Investors should note several risks. Total debt rose to $3.24 billion as buybacks were debt-funded, and shareholders' equity fell to $846.4 million, largely because of treasury stock purchases and a $1.49 billion accumulated other comprehensive loss. Pending Brazilian tax and central bank matters total roughly $150 million, and 2002 accounting changes will reclassify about 4% of sales and stop goodwill amortization, which should add roughly $40 million to net income.
Mar 20, 2002
1996
Colgate-Palmolive Annual Report, Year Ended Dec 31, 1996
Colgate-Palmolive's 1996 10-K shows a company in recovery and expansion mode. Net sales rose 5% to $8,749.0 million on 5% volume growth, with gains in every geographic region. Earnings before interest and taxes (EBIT) grew 12% to $1,152.0 million versus $1,029.4 million in 1995 excluding the restructuring charge. Net income was $635.0 million, or $4.19 per share primary, compared with $172.0 million in 1995, which included a $369.2 million after-tax restructuring charge. Excluding that charge, 1995 earnings were $541.2 million, so 1996 income grew about 17%. Gross margin improved to 49.1% from 47.9%, and the effective tax rate fell to 33.5% from 52.7% in 1995, which was distorted by the restructuring. Balance sheet and cash flow improved meaningfully. Operating cash flow rose 13% to $917.4 million, funding $459.0 million of capital expenditures and $296.2 million of dividends while reducing total debt, with long-term debt falling from $3,029.0 million to $2,897.2 million. The net debt-to-total-capitalization ratio dropped to 58% from 64%. Shareholders' equity rose to $2,034.1 million from $1,679.8 million. Management also announced a two-for-one stock split approved March 6, 1997, payable to holders as of April 25, 1997, though the financial statements in this filing are not restated for it. Key risks flagged by management include economic uncertainty in Venezuela, a slow Mexican recovery, competitive pressure and slow growth in Western Europe, and conditions attached by Brazilian antitrust authorities to the 1995 Kolynos acquisition, which require suspending the Kolynos toothpaste brand in Brazil for four years. The restructuring program, with savings expected to reach $100.0 million annually by 1998, is largely complete, with substantial completion expected in 1997.
Mar 18, 1997
1995
Colgate-Palmolive Annual Report, Year Ended Dec 31, 1995
Colgate-Palmolive's 1995 results were dominated by two forces: the January 1995 acquisition of Kolynos (about $1.04 billion) and a $460.5 million pretax restructuring charge taken in Q3 1995. Reported net sales rose 10% to $8,358.2 million, or 8% excluding Kolynos and 1994 divestitures, led by Asia/Africa (+17%), Latin America (+14%), and Europe (+10% on flat volumes). Reported net income fell to $172.0 million ($1.04 per share, $1.02 fully diluted) from $580.2 million, but excluding the restructuring charge, earnings were $541.2 million ($3.58 per share), down from $3.82 per share in 1994. The core oral, personal and household care segment remained the growth engine, with segment EBIT excluding the charge up 13%, while Pet Nutrition (Hill's) was a drag, with EBIT down 27%. The balance sheet and cash flow picture weakened. Long-term debt more than doubled to $2,992.0 million, net interest expense rose to $205.4 million from $86.7 million, and the net debt-to-capitalization ratio climbed to 64% from 49%. Operating cash flow declined 2% to $810.2 million, and capital expenditures were $431.8 million (about 5.2% of sales). The effective tax rate jumped to 52.7%, largely because the restructuring charge carried a tax benefit of only 20%. Dividends were raised 15% to $1.76 per share, but total dividend payments of $276.5 million were covered by operating cash flow only with less headroom than before. Looking ahead, management expects restructuring savings of about $100 million annually by 1998, beginning in the second half of 1996, as 24 of 112 factories are closed or reconfigured and roughly 3,000 jobs are eliminated. Key risks include the Brazilian antitrust review of Kolynos, economic instability in Mexico and Venezuela, and competitive pressure in Western Europe. Investors will need to judge whether the margin recovery and deleveraging can keep pace with the higher debt load from the acquisition-driven growth.
Mar 25, 1996
1994
Colgate-Palmolive Annual Report, Year Ended Dec 31, 1994
Colgate-Palmolive's 1994 results show a company growing top-line and profit at a steady clip, with the strongest momentum in developing markets. Net sales rose 6% to $7,587.9 million (8% excluding divested non-core businesses), and EBIT grew 9% to $966.6 million. Gross margin improved to 48.4% from 47.8%, driven by a mix shift toward oral care, personal care and pet nutrition. Net income reached $580.2 million, or $3.82 per primary share, versus $189.9 million in 1993, which was depressed by a one-time accounting-change charge. Excluding that charge and a one-time loss on the Princess House sale, income rose 7% to $585.4 million. North America was the weak spot, with sales down 8% and segment EBIT down 21% due to trade destocking and disinflationary pricing, while Asia/Africa and Latin America grew sales 20% and 14%. The central investor issue is the balance sheet. On January 10, 1995, Colgate bought the Kolynos oral care business from American Home Products for $1,040.0 million in cash, financed with bank borrowings of roughly $1,100 million. Pro forma debt-to-total-capitalization rises to 63% from 52% at year-end 1994, and shareholders' equity is only $1,822.9 million. Management expects the deal to be less than 5% dilutive to first-year earnings, with the South American business expected to be accretive over time. The acquisition still faces antitrust review in Brazil and Colombia. Cash generation supports the story. Operating cash flow rose 17% to $829.4 million, and capital spending was $400.8 million (5.3% of sales). Dividends were raised 14% to $1.54 per common share, and about 6.9 million shares were repurchased for $411.1 million. Management guides to continued growth in developing markets, with some near-term caution about Mexico's peso crisis. Investors should weigh the strong operating momentum against the higher leverage the Kolynos deal creates.
Mar 23, 1995
1993
Colgate-Palmolive Annual Report, Year Ended Dec 31, 1993
Colgate-Palmolive's 1993 10-K shows a company whose underlying operating performance improved sharply while reported net income fell, mainly because of a one-time accounting charge. Worldwide net sales rose 2% to $7,141.3 million, or 7% excluding unfavorable currency effects, with volume up 5%. Gross margin widened to 47.8% from 47.1%, SG&A fell to 34% of sales from 36%, and EBIT rose 14% to $883.0 million. Net income dropped to $189.9 million ($1.08 per share) from $477.0 million, but that figure includes a $358.2 million cumulative after-tax charge from adopting new accounting standards for income taxes, postretirement benefits and postemployment benefits. Before that charge, income rose 15% to $548.1 million, or $3.38 per share. The balance sheet and capital structure changed materially during the year. The company spent $673.0 million to repurchase about 12 million shares and acquired businesses for $222.5 million, including S.C. Johnson's liquid hand and body soap brands in Europe. Debt rose to $1.55 billion in total and the debt-to-capitalization ratio climbed to 48% from 30%. Shareholders' equity fell to $1,875.0 million from $2,619.8 million, largely because of the buybacks and the accounting charges. Operating cash flow improved to $710.4 million, or 9.9% of sales, and capital expenditures were $364.3 million. Management's outlook is cautious but constructive. It expects continued recessionary conditions in parts of its developed markets and flags uncertainty in 1994, while pointing to growth in developing markets. The company also authorized an additional five million share repurchase in early 1994. Regional performance was uneven: Latin America grew strongly, Asia/Africa rose, and Europe and the US/Canada declined.
Mar 25, 1994