Summary
Colgate-Palmolive Company (CL) reported a slight increase in net sales for the third quarter of 2025, reaching $5.131 billion, 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 $0.91 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 $200 and $300 million over the next three years. Management remains focused on driving organic sales growth and operational efficiencies despite challenging global macroeconomic conditions.
Financial Highlights
46 data points| Revenue | $5.13B |
| Cost of Revenue | $2.08B |
| Gross Profit | $3.05B |
| SG&A Expenses | $1.97B |
| Operating Income | $1.06B |
| Net Income | $735.00M |
| EPS (Basic) | $0.91 |
| EPS (Diluted) | $0.91 |
| Shares Outstanding (Basic) | 807.80M |
| Shares Outstanding (Diluted) | 810.20M |
Key Highlights
- 1Net sales increased by 2.0% to $5.131 billion in Q3 2025, driven by pricing and favorable foreign exchange, despite a volume decline.
- 2Diluted EPS grew to $0.91 from $0.90 in the same period last year.
- 3Gross 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.
- 4The company acquired Care TopCo Pty Ltd (Prime100 pet food business) for $301 million, expanding its Pet Nutrition segment.
- 5A 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.
- 6Operating profit for the quarter slightly decreased by 1% to $1.059 billion.
- 7The company continues to navigate challenging global conditions including inflation, geopolitical tensions, and supply chain disruptions.