10-QPeriod: Q3 FY2025

COLGATE PALMOLIVE CO Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 31, 2025For Securities:CL

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
Beta

Revenue

$5.13B

59.4% Gross Margin

Net Income

$735.00M

14.3% Net Margin

EPS (Diluted)

$0.91

Total Assets

$17.51B

Cash & Equivalents

$1.28B

Free Cash Flow

$1.26B

Financial Statements
Beta
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.

Frequently Asked Questions

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%.

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.

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.

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.