10-QPeriod: Q2 FY2025

COLGATE PALMOLIVE CO Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 1, 2025For Securities:CL

Summary

Colgate-Palmolive Company (CL) reported its financial results for the second quarter and first half of 2025. For the quarter, net sales increased by 1.0% to $5.11 billion, driven by net selling price increases, while volume remained flat. The Hill’s Pet Nutrition segment showed stronger growth at 3.8%, aided by the recent acquisition of Prime100. Diluted Earnings Per Share (EPS) saw an increase to $0.91 for the quarter. For the first six months, net sales saw a slight decrease of 1.0% to $10.02 billion, with organic sales growing 1.6% driven by price increases and a slight volume contribution from the Pet Nutrition segment. The company continues to manage through inflationary pressures and global economic uncertainties, implementing cost-saving initiatives and revenue growth management strategies.

Financial Highlights

48 data points
Beta

Revenue

$5.11B

60.1% Gross Margin

Net Income

$743.00M

14.5% Net Margin

EPS (Diluted)

$0.91

Total Assets

$17.47B

Cash & Equivalents

$1.22B

Free Cash Flow

$884.00M

Financial Statements
Beta
Revenue$5.11B
Cost of Revenue$2.04B
Gross Profit$3.07B
SG&A Expenses$1.96B
Operating Income$1.08B
Net Income$743.00M
EPS (Basic)$0.92
EPS (Diluted)$0.91
Shares Outstanding (Basic)810.20M
Shares Outstanding (Diluted)813.30M

Key Highlights

  • 1Net sales for the second quarter of 2025 increased 1.0% to $5.11 billion, with organic sales growing 1.8%, primarily driven by net selling price increases.
  • 2Hill's Pet Nutrition segment demonstrated robust growth, with net sales up 3.8% for the quarter, boosted by the acquisition of Prime100.
  • 3Diluted Earnings Per Share (EPS) rose to $0.91 for the second quarter of 2025, up from $0.89 in the prior year quarter.
  • 4Gross profit margin for the second quarter decreased slightly to 60.1% compared to 60.6% in the prior year, impacted by higher raw and packaging material costs.
  • 5The company initiated a new three-year productivity program aimed at driving future growth and optimizing supply chain and organizational structures, projected to incur charges between $200-$300 million.
  • 6Cash flow from operations decreased by 11% to $1.48 billion for the first six months of 2025, mainly due to working capital changes.
  • 7The company repurchased approximately $2.56 billion in shares during the quarter ended June 30, 2025, under its new share repurchase program.

Frequently Asked Questions

Colgate-Palmolive reported a 1.0% increase in net sales for the second quarter of 2025, reaching $5.11 billion. This growth was primarily driven by net selling price increases of 2.0%, while volume remained flat. Organic sales, which exclude foreign exchange and acquisition impacts, grew by 1.8%.

The Hill's Pet Nutrition segment showed stronger performance with net sales increasing by 3.8% in the second quarter, partly due to the acquisition of Prime100, which contributed 1.0% to volume. The Oral, Personal and Home Care segment saw a modest increase of 0.2% in net sales for the quarter.

While the company is experiencing higher raw and packaging material costs, which impacted gross profit margin by 50 basis points in the second quarter, they are implementing cost-saving measures through their funding-the-growth initiatives and a new productivity program. These efforts, along with strategic pricing, aim to mitigate cost pressures.

Colgate-Palmolive continues to prioritize shareholder returns through dividends and share repurchases. The company increased its quarterly common stock dividend to $0.52 per share and repurchased approximately $2.56 billion of its common stock during the quarter ended June 30, 2025, under a new $5 billion share repurchase program.