Early Access

10-QPeriod: Q3 FY2022

COLGATE PALMOLIVE CO Quarterly Report for Q3 Ended Sep 30, 2022

Filed October 28, 2022For Securities:CL

Summary

Colgate-Palmolive Company reported mixed financial results for the third quarter ended September 30, 2022. While net sales saw a slight increase of 1.0% to $4,455 million, this was primarily driven by price increases (11.5%) rather than volume growth, which declined by 4.5%. Organic sales, excluding foreign exchange, acquisitions, and divestitures, grew by a more robust 7.0%. However, profitability faced pressure, with Gross Profit declining due to significant increases in raw and packaging material costs (920 bps), partially offset by pricing and cost savings initiatives. Diluted Earnings Per Share (EPS) decreased to $0.74 from $0.75 in the prior year's quarter. The company also completed a significant acquisition in its Pet Nutrition segment, acquiring Red Collar Pet Foods for $727 million to support the growth of its Hill's Pet Nutrition business. Management highlighted ongoing challenges from global macroeconomic conditions, inflation, rising interest rates, and supply chain disruptions, while also noting efforts to mitigate these through pricing and productivity initiatives.

Financial Highlights

48 data points
Beta

Revenue

$4.46B

0.6% Gross Margin

Net Income

$618.00M

0.1% Net Margin

EPS (Diluted)

$0.74

Total Assets

$16.29B

Cash & Equivalents

$938.00M

Free Cash Flow

$969.00M

Financial Statements
Beta
Revenue$4.46B
Cost of Revenue$1.91B
Gross Profit$2.55B
SG&A Expenses$1.63B
Operating Income$947.00M
Net Income$618.00M
EPS (Basic)$0.74
EPS (Diluted)$0.74
Shares Outstanding (Basic)835.70M
Shares Outstanding (Diluted)838.50M

Key Highlights

  • 1Net sales increased 1.0% to $4,455 million, driven by an 11.5% increase in selling prices, while volume declined by 4.5%.
  • 2Organic sales (excluding FX, acquisitions, divestitures) grew by 7.0%, indicating underlying business strength.
  • 3Gross profit margin decreased by 220 basis points to 57.2%, primarily due to a 920 basis point increase in raw and packaging material costs.
  • 4Diluted Earnings Per Share (EPS) decreased slightly to $0.74 from $0.75 in the prior year quarter.
  • 5The company acquired Red Collar Pet Foods for $727 million, bolstering its Pet Nutrition segment.
  • 6Selling, general and administrative expenses as a percentage of net sales decreased to 36.7% from 37.1%, driven by reduced advertising investment.
  • 7Operating profit decreased 2% to $947 million, with operating profit margin declining by 60 basis points to 21.3%.

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