10-KPeriod: FY2024

COLGATE PALMOLIVE CO Annual Report, Year Ended Dec 31, 2024

Filed February 13, 2025For Securities:CL

Summary

Colgate-Palmolive Company's 2024 10-K filing highlights a year of solid growth driven by both volume and pricing strategies across its Oral, Personal, and Home Care, and Pet Nutrition segments. The company achieved net sales growth of 3.3% and an impressive organic sales increase of 7.4%, demonstrating resilience in a challenging global economic environment marked by inflation and geopolitical uncertainties. Key to this performance was the strategic focus on innovation, higher-growth segments, and expanding into faster-growing channels and markets. Gross profit margin saw a notable improvement due to cost savings initiatives and higher pricing, though partially offset by increased raw material costs. The company also emphasized its commitment to sustainability, making progress on its 2025 targets, including the transition to recyclable toothpaste tubes and investments in renewable energy. Despite ongoing global economic headwinds and competitive pressures, Colgate-Palmolive maintains a strong financial position, a clear business strategy focused on compounding earnings per share growth, and a commitment to returning value to shareholders through dividends and share repurchases.

Financial Highlights

52 data points
Beta

Revenue

$20.10B

60.5% Gross Margin

Net Income

$2.89B

14.4% Net Margin

EPS (Diluted)

$3.51

Total Assets

$16.05B

Cash & Equivalents

$1.10B

Free Cash Flow

$4.11B

Financial Statements
Beta
Revenue$20.10B
Cost of Revenue$7.94B
Gross Profit$12.16B
R&D Expenses$355.00M
SG&A Expenses$7.73B
Operating Income$4.27B
Net Income$2.89B
EPS (Basic)$3.53
EPS (Diluted)$3.51
Shares Outstanding (Basic)819.10M
Shares Outstanding (Diluted)823.20M

Key Highlights

  • 1Colgate-Palmolive reported a 3.3% increase in Net Sales to $20,101 million and a robust 7.4% organic sales growth for 2024, indicating strong underlying business performance.
  • 2The Oral, Personal, and Home Care segment saw a 3.0% increase in Net Sales and 8.1% organic sales growth, driven by Oral Care, Home Care, and Personal Care categories.
  • 3Hill's Pet Nutrition segment delivered a 4.5% increase in Net Sales and 4.9% organic sales growth, showing continued strength in the pet care market.
  • 4Worldwide Gross profit margin improved to 60.5% in 2024, up from 58.2% in 2023, driven by cost savings and higher pricing, despite rising raw and packaging material costs.
  • 5The company is actively progressing on its Sustainability & Social Impact Strategy, with approximately 75% of toothpaste SKUs globally now using recyclable tubes and a commitment to 100% renewable electricity by 2030.
  • 6Operating profit increased by 7% to $4,268 million, with operating profit margin expanding by 70 basis points to 21.2%.
  • 7Colgate-Palmolive returned significant capital to shareholders through $1,789 million in dividend payments and $1,739 million in share repurchases during 2024.

Frequently Asked Questions

Colgate-Palmolive's net sales growth in 2024 was driven by a combination of volume growth (3.1%) and net selling price increases (4.4%). This was partially offset by negative foreign exchange impacts (-4.1%), resulting in an overall increase in Net Sales of 3.3% and organic sales growth of 7.4%.

Profitability improved in 2024. Worldwide Gross profit margin increased to 60.5% from 58.2% in the prior year. This improvement was primarily attributed to cost savings from the company's 'funding-the-growth' initiatives (280 basis points) and higher pricing (170 basis points). These gains were partially offset by increased raw and packaging material costs (230 basis points).

Colgate-Palmolive's strategy involves driving organic sales growth through science-led innovation, expanding into higher-growth adjacent categories and faster-growing channels, and leveraging operational efficiencies. The company is also implementing pricing actions to offset rising costs and focusing on 'funding-the-growth' initiatives to lower costs and improve asset utilization. They are actively monitoring geopolitical events and trade relation developments for potential impacts.

The company is making good progress on its 2025 Sustainability & Social Impact Strategy. Notably, approximately 75% of its toothpaste SKUs globally now use recyclable tubes, and they are working towards 100% renewable electricity for their operations by 2030. They also continue efforts to reduce new plastic usage.