10-KPeriod: FY2025

COLGATE PALMOLIVE CO Annual Report, Year Ended Dec 31, 2025

Filed February 23, 2026For Securities:CL

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
Beta

Revenue

$20.38B

60.1% Gross Margin

Net Income

$2.13B

10.5% Net Margin

EPS (Diluted)

$2.63

Total Assets

$16.33B

Cash & Equivalents

$1.29B

Free Cash Flow

$4.20B

Financial Statements
Beta
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.

Frequently Asked Questions

Sales growth in 2025 was primarily driven by net selling price increases of 2.1%, which helped to offset a slight decline in sales volume of 0.4%. This resulted in overall Net sales growth of 1.4% and organic sales growth of 1.4%.

The "Strategic Growth and Productivity Program" is a new three-year initiative approved in July 2025. Its goals are to better align the company's organizational structure with its strategic initiatives, optimize the global supply chain for agility and efficiency, and simplify the organizational structure to reduce overhead costs. It is expected to result in cumulative pre-tax charges between $200 and $300 million.

Inflationary pressures and higher raw and packaging material costs significantly impacted profitability, leading to a 50 basis point decrease in the non-GAAP Gross profit margin to 60.1%. The company is mitigating these impacts through cost savings initiatives, pricing actions, and its funding-the-growth programs.

A significant after-tax impairment charge of $794 million was recorded in the fourth quarter of 2025 primarily due to lower-than-expected category growth and weaker performance in the skin health business, particularly in China. This led to a reduction in the carrying values of goodwill, trademarks, and customer relationships related to the Filorga brand.