01—Abstract
Summary
Summary of the 10-Q filed October 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Colgate-Palmolive Company (CL) reported a slight increase in net sales for the third quarter of 2025, reaching $5.131 billiona, a 2.0% rise compared to the prior year's period.
This growth was primarily driven by net selling price increases and a positive foreign exchange impact, though it was partially offset by a decline in sales volume. Diluted Earnings Per Share (EPS) saw a modest increase to $0.91b from $0.90 year-over-year. The company experienced higher raw and packaging material costs, which led to a decrease in gross profit margin.
Despite this pressure, Colgate-Palmolive implemented cost-saving initiatives and pricing strategies to mitigate the impact. The company also announced a new "Strategic Growth and Productivity Program" aimed at driving future growth and efficiencies, which is expected to incur pre-tax charges between $200c and $300 million over the next three years. Management remains focused on driving organic sales growth and operational efficiencies despite challenging global macroeconomic conditions.
02—Key points
Key Highlights
- Net sales increased by 2.0% to $5.131 billion in Q3 2025, driven by pricing and favorable foreign exchange, despite a volume decline.
- Diluted EPS grew to $0.91 from $0.90 in the same period last year.
- Gross profit margin declined to 59.4% from 61.1% due to significantly higher raw and packaging material costs, partially offset by cost savings and pricing.
- The company acquired Care TopCo Pty Ltd (Prime100 pet food business) for $301 million, expanding its Pet Nutrition segment.
- A new "Strategic Growth and Productivity Program" was approved, estimated to result in $200-$300 million in pre-tax charges to drive future growth and efficiencies.
- Operating profit for the quarter slightly decreased by 1% to $1.059 billion.
- The company continues to navigate challenging global conditions including inflation, geopolitical tensions, and supply chain disruptions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Colgate-Palmolive kept $0.14.
- Revenue$5.13B100.0%
- Cost of revenue−$2.08B40.6%
- Gross profit$3.05B59.4%
- Operating costs−$1.99B38.8%
- Operating income$1.06B20.6%
- Interest, other & tax−$324.0M6.3%
- Net income$735.0M14.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 31, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $5.13B$5.03B | +1.9% |
| Cost of Revenue | $2.08B$1.96B | +6.3% |
| Gross Profit | $3.05B$3.07B | −0.8% |
| SG&A Expenses | $1.97B$1.98B | −0.4% |
| Operating Income | $1.06B$1.06B | −0.6% |
| Net Income | $735.00M$737.00M | −0.3% |
| EPS (Basic) | $0.91$0.90 | +1.1% |
| EPS (Diluted) | $0.91$0.90 | +1.1% |
| Shares Outstanding (Basic) | 807.80M817.70M | −1.2% |
| Shares Outstanding (Diluted) | 810.20M822.50M | −1.5% |
05—Questions
Frequently Asked Questions
What was the primary driver of net sales growth in the third quarter of 2025?
Net sales growth was primarily driven by net selling price increases of 2.3% and a positive foreign exchange impact of 1.2%. This was partially offset by a volume decline of 1.5%.
What is the "Strategic Growth and Productivity Program" and what is its estimated financial impact?
The "Strategic Growth and Productivity Program" is a new three-year initiative approved to optimize the global supply chain, align organizational structure, and streamline operations. It is estimated to result in cumulative pre-tax charges totaling between $200 million and $300 million.
How did rising material costs affect the company's profitability?
Significantly higher raw and packaging material costs led to a decrease in the worldwide Gross profit margin to 59.4% in Q3 2025 from 61.1% in Q3 2024. This was mitigated by cost savings from funding-the-growth initiatives, higher pricing, and a favorable mix.
What was the impact of the acquisition of Prime100?
The acquisition of Care TopCo Pty Ltd (Prime100 pet food business) for $301 million on April 30, 2025, expanded the Hill's Pet Nutrition segment, particularly into the fresh pet food category in Australia. It contributed 0.4% to overall volume growth and 1.6% to volume growth within the Pet Nutrition segment for the quarter.
06—Continue