Summary
Colgate-Palmolive Company's 2025 Annual Report (10-K) highlights a year of resilience amidst challenging macroeconomic and geopolitical conditions. The company achieved a 1.4% increase in Net sales, driven primarily by a 2.1% increase in net selling prices, which helped offset a slight decline in volume. Organic sales growth was also 1.4%. The Oral, Personal, and Home Care segment saw modest growth, while the Pet Nutrition segment, bolstered by the acquisition of Prime100, also reported sales increases. Despite inflationary pressures and higher raw material costs impacting gross margins, Colgate-Palmolive demonstrated effective cost management through its funding-the-growth initiatives and implemented a new Strategic Growth and Productivity Program aimed at optimizing operations and reducing overhead. The company continues to focus on its 2030 strategy, emphasizing innovation, digital capabilities, and omnichannel demand generation. While net income and diluted EPS saw declines year-over-year due to significant impairment charges related to the skin health business and other one-time items, the underlying operational performance, excluding these items, showed modest growth.
Financial Highlights
52 data points| Revenue | $20.38B |
| Cost of Revenue | $8.13B |
| Gross Profit | $12.25B |
| R&D Expenses | $366.00M |
| SG&A Expenses | $7.90B |
| Operating Income | $3.31B |
| Net Income | $2.13B |
| EPS (Basic) | $2.64 |
| EPS (Diluted) | $2.63 |
| Shares Outstanding (Basic) | 808.70M |
| Shares Outstanding (Diluted) | 811.10M |
Key Highlights
- 1Achieved 1.4% Net sales growth in 2025, reaching $20,382 million, driven by a 2.1% increase in selling prices, partially offsetting a 0.4% volume decline.
- 2Organic sales grew by 1.4% in 2025, reflecting the company's ability to drive underlying business growth despite external challenges.
- 3The Oral, Personal, and Home Care segment reported a 1.0% increase in Net sales, with Oral Care showing growth in toothpaste and manual toothbrush categories.
- 4The Pet Nutrition segment, including the acquisition of Prime100, saw a 2.9% increase in Net sales, demonstrating continued strength in this division.
- 5Experienced a 50 basis point decrease in non-GAAP Gross profit margin to 60.1% due to significantly higher raw and packaging material costs, partly mitigated by cost savings and pricing actions.
- 6Recorded a significant $794 million after-tax goodwill and intangible asset impairment charge related to the skin health business, primarily Filorga, impacting reported net income.
- 7Launched a new three-year "Strategic Growth and Productivity Program" aimed at optimizing the supply chain, aligning organizational structure, and reducing overhead costs.