10-QPeriod: Q3 FY2024

COLGATE PALMOLIVE CO Quarterly Report for Q3 Ended Sep 30, 2024

Filed October 25, 2024For Securities:CL

Summary

Colgate-Palmolive Company reported solid financial results for the nine months ended September 30, 2024, with net sales increasing by 4.5% to $15.2 billion and net income attributable to the company rising 36% to $2.15 billion. Diluted EPS also saw a significant increase to $2.61 from $1.90 in the prior year period. The company demonstrated strong organic sales growth of 8.5% for the nine-month period, driven by both volume and pricing strategies across its Oral, Personal and Home Care, and Pet Nutrition segments. Gross profit margin improved to 60.6% from 57.7% in the prior year, reflecting cost savings and pricing actions, though partially offset by higher raw material costs. The company continues to navigate a challenging macroeconomic environment characterized by inflation and foreign currency volatility, particularly in hyper-inflationary economies. Despite these headwinds, Colgate-Palmolive maintained its market share in global toothpaste and manual toothbrush categories. The company's strategic focus on innovation, efficiency through its "funding-the-growth" initiatives, and investment in brands positions it for continued resilience and growth, even amidst global economic uncertainties and increased competition.

Financial Highlights

47 data points
Beta

Revenue

$5.03B

61.1% Gross Margin

Net Income

$737.00M

14.6% Net Margin

EPS (Diluted)

$0.90

Total Assets

$16.77B

Cash & Equivalents

$1.23B

Free Cash Flow

$1.17B

Financial Statements
Beta
Revenue$5.03B
Cost of Revenue$1.96B
Gross Profit$3.07B
SG&A Expenses$1.98B
Operating Income$1.06B
Net Income$737.00M
EPS (Basic)$0.90
EPS (Diluted)$0.90
Shares Outstanding (Basic)817.70M
Shares Outstanding (Diluted)822.50M

Key Highlights

  • 1Net sales for the nine months ended September 30, 2024, grew 4.5% year-over-year to $15.16 billion.
  • 2Net income attributable to Colgate-Palmolive Company increased by 36% to $2.15 billion for the nine-month period.
  • 3Diluted Earnings Per Share (EPS) rose to $2.61 for the nine months ended September 30, 2024, up from $1.90 in the prior year.
  • 4Organic sales (excluding foreign exchange, acquisitions, and divestitures) increased by a strong 8.5% for the nine-month period.
  • 5Gross profit margin improved to 60.6% for the nine months ended September 30, 2024, up from 57.7% in the prior year, indicating effective cost management and pricing strategies.
  • 6The company maintained its global toothpaste market share at 41.6% and manual toothbrush market share at 32.3% on a year-to-date basis.
  • 7Cash provided by operations increased by 9% to $2.84 billion for the nine-month period, demonstrating robust cash generation.

Frequently Asked Questions

For the nine months ended September 30, 2024, Colgate-Palmolive reported net sales of $15.16 billion, a 4.5% increase compared to $14.51 billion in the same period last year. The third quarter of 2024 saw net sales of $5.03 billion, up 2.4% from $4.91 billion in the third quarter of 2023. Organic sales, which exclude foreign exchange, acquisitions, and divestitures, grew by 8.5% for the nine-month period and 6.8% for the third quarter.

Profitability showed significant improvement. Net income attributable to Colgate-Palmolive Company for the nine months ended September 30, 2024, increased 36% to $2.15 billion, resulting in diluted EPS of $2.61, up from $1.90 in the prior year. Gross profit margin expanded to 60.6% for the nine-month period, an increase from 57.7% last year, driven by cost savings initiatives and higher pricing. Operating profit for the nine months also rose 10% to $3.21 billion.

Sales growth is being driven by a combination of volume increases and net selling price adjustments. For the nine months, volume grew 3.3% and pricing increased 5.2%, partially offset by negative foreign exchange. The company's strategy of investing in innovation, focusing on core and premium products within its Oral, Personal and Home Care, and Pet Nutrition segments, along with expanding in faster-growing channels and markets, are key contributors to this growth.

Colgate-Palmolive operates in a dynamic global environment. Key challenges include persistent inflation and foreign currency volatility, particularly in hyper-inflationary economies. Increased competition, evolving retail landscapes with the growth of eCommerce, and geopolitical uncertainties (such as the wars in Ukraine and the Middle East) are also noted risks. The company continues to monitor these factors and implement mitigation strategies, including pricing actions and cost-saving initiatives like the "2022 Global Productivity Initiative."