01—Abstract
Summary
Summary of the 10-Q filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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.
02—Key points
Key Highlights
- Net 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.
- Hill's Pet Nutrition segment demonstrated robust growth, with net sales up 3.8% for the quarter, boosted by the acquisition of Prime100.
- Diluted Earnings Per Share (EPS) rose to $0.91 for the second quarter of 2025, up from $0.89 in the prior year quarter.
- Gross 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.
- The 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.
- Cash flow from operations decreased by 11% to $1.48 billion for the first six months of 2025, mainly due to working capital changes.
- The company repurchased approximately $2.56 billion in shares during the quarter ended June 30, 2025, under its new share repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Colgate-Palmolive kept $0.15.
- Revenue$5.11B100.0%
- Cost of revenue−$2.04B39.9%
- Gross profit$3.07B60.1%
- Operating costs−$1.99B38.9%
- Operating income$1.08B21.1%
- Interest, other & tax−$337.0M6.6%
- Net income$743.0M14.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 1, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $5.11B$5.06B | +1.0% |
| Cost of Revenue | $2.04B$1.99B | +2.5% |
| Gross Profit | $3.07B$3.07B | +0.1% |
| SG&A Expenses | $1.96B$1.94B | +1.2% |
| Operating Income | $1.08B$1.09B | −1.1% |
| Net Income | $743.00M$731.00M | +1.6% |
| EPS (Basic) | $0.92$0.89 | +3.4% |
| EPS (Diluted) | $0.91$0.89 | +2.2% |
| Shares Outstanding (Basic) | 810.20M819.70M | −1.2% |
| Shares Outstanding (Diluted) | 813.30M823.70M | −1.3% |
05—Questions
Frequently Asked Questions
What was the overall sales performance for the second quarter of 2025?
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%.
How did the Pet Nutrition segment perform compared to the Oral, Personal and Home Care segment?
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.
What is the outlook for profitability given rising costs?
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.
What is the company's strategy for shareholder returns?
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.
06—Continue