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Colgate-Palmolive Company is a global consumer products company that operates in the Oral, Personal and Home Care, and Pet Nutrition segments. The company sells a wide range of products, including oral care items like toothpaste and toothbrushes, personal care products such as shampoos and deodorants, and home care goods like dishwashing detergents and household cleaners . Additionally, Colgate-Palmolive offers specialty pet nutrition products for dogs and cats under the Hill's Science Diet and Hill's Prescription Diet brands . These products are marketed in over 200 countries and territories, with a significant portion of sales coming from outside the U.S., including emerging markets .
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Oral, Personal and Home Care - Offers a variety of products including toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants, antiperspirants, skin health products, dishwashing detergents, fabric conditioners, and household cleaners. These products are sold to traditional and eCommerce retailers, wholesalers, distributors, dentists, and skin health professionals .
- Oral Care - Includes products like toothpaste, toothbrushes, and mouthwash.
- Personal Care - Comprises items such as shampoos, conditioners, deodorants, and skin health products.
- Home Care - Encompasses products like dishwashing detergents, fabric conditioners, and household cleaners.
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Pet Nutrition - Provides specialty pet nutrition products for dogs and cats, marketed under brands like Hill's Science Diet and Hill's Prescription Diet. These products are sold through authorized pet supply retailers, veterinarians, and eCommerce retailers .
- In North America, you mentioned shipment timing issues and e-commerce pullbacks impacting the quarter; can you elaborate on the specific disruptions that caused shipments to be pushed from Q3 to Q4, and how confident are you that these issues are resolved and won't recur?
- Despite strong results in Europe this quarter, some of your peers suggest such performance may not be sustainable; given the challenges of pricing and historical softness in the European market, what strategies do you have in place to maintain momentum and address potential headwinds?
- The Skin Health business faced softness due to online retailers pulling back orders and sluggishness in key markets; how are you adjusting your approach to address these challenges, and what steps are you taking to drive sustainable growth in this segment?
- In U.S. Oral Care, market share has been roughly flat with some declines, and competitors seem to be gaining ground; can you provide more detail on what is contributing to this share loss, what competitors are doing differently, and how you plan to regain momentum in this critical market?
- With increased advertising and reinvestment spending, is there a point where returns begin to diminish, and how do you assess the optimal level of investment to ensure you're not overspending without sufficient return on investment?
Recent developments and announcements about CL.
Financial Reporting
- Net Sales: $4,944 million, a slight decrease of 0.1% compared to Q4 2023.
- Organic Sales Growth: Increased by 4.3%, driven by a 2.5% increase in volume and 1.8% pricing, offset by a 4.4% negative impact from foreign exchange.
- Earnings Per Share (EPS):
- GAAP EPS: $0.90, up 3% from Q4 2023.
- Base Business EPS (Non-GAAP): $0.91, up 5% from Q4 2023.
- Gross Profit Margin: Increased by 70 basis points to 60.3% (both GAAP and Base Business).
- Market Share:
- Maintained global leadership in toothpaste with a 41.4% market share.
- Continued leadership in manual toothbrushes with a 32.2% market share.
- Net Sales: Surpassed $20 billion for the first time, a 3.3% increase from 2023.
- Organic Sales Growth: Increased by 7.4%, with growth across all divisions and categories.
- Earnings Per Share (EPS):
- GAAP EPS: $3.51, a 27% increase from 2023.
- Base Business EPS (Non-GAAP): $3.60, an 11% increase from 2023.
- Net Cash Provided by Operations: $4,107 million, up 10% from 2023.
- Advertising Investment: Increased by 15% in 2024, following a 19% increase in 2023.
- North America: Net sales decreased by 1.0%, with organic sales down 0.7%.
- Latin America: Net sales declined by 7.2%, but organic sales grew by 9.2%.
- Europe: Net sales increased by 4.9%, with organic sales up 4.5%.
- Asia Pacific: Net sales grew by 3.7%, with organic sales up 3.8%.
- Africa/Eurasia: Net sales increased by 2.8%, with organic sales up 9.4%.
- Hill's Pet Nutrition: Net sales grew by 2.3%, with organic sales up 2.9%.
- Net Sales: Expected to remain flat, with a mid-single-digit negative impact from foreign exchange.
- Organic Sales Growth: Anticipated within the long-term target range of 3% to 5%.
- Earnings Growth:
- GAAP EPS: Mid-single-digit growth.
- Base Business EPS (Non-GAAP): Low to mid-single-digit growth.
Earnings Report
Colgate-Palmolive Company (CL) has released its earnings results for the fourth quarter and full year 2024. Below are the key highlights:
Fourth Quarter 2024 Results
Full Year 2024 Results
Divisional Performance (Q4 2024)
CEO Commentary
Noel Wallace, Chairman, President, and CEO, highlighted the company's strong performance in organic sales growth, gross profit margin expansion, and bottom-line growth. He emphasized the company's ability to invest in innovation and digital capabilities while achieving consistent earnings growth.
Outlook for 2025
For more details, visit Colgate-Palmolive's Investor Center.