The dramatic jump in **operating cash flow** in Q1 2023 was primarily driven by an **improvement in working capital**, although this gain was partially offset by lower net income (excluding non-cash items) during the period.  **[0000021665-23-000016_cl-20230331.htm:41]** 

What drove the dramatic jump in operating cash flow in Q1 2023?

Operating cash flow in Q4 2023 nearly doubled because the company experienced **higher net income**, **improved working capital** (including a smaller negative impact from receivables, a positive change in inventories, and better performance in payables and other accruals), a **one-time ERISA litigation adjustment**, and the elimination of **goodwill and intangible assets impairment charges** that had negatively impacted cash flow in the prior period.  **[0000021665-24-000003_cl-20231231.htm:105]** 

Why did operating cash flow nearly double in Q4 2023?

What factors contributed to the substantial improvement in free cash flow in Q4 2023?

Colgate-Palmolive achieved strong year-over-year growth in operating cash flow primarily by realizing a **significant increase in net income** (from **$1,967 million in FY 2022** to **$2,455 million in FY 2023**), coupled with **improvements in working capital management**—notably a reduced negative impact from receivables, a shift from negative to positive in inventories, and better performance in accounts payable and other accruals—and the inclusion of a **non-recurring $267 million ERISA litigation item** that further boosted operating cash flow.  **[0000021665-24-000003_cl-20231231.htm:105]** 

How did the company achieve strong year-over-year growth in operating cash flow?

What explains the significant increase in free cash flow for FY 2023?

593d3dbbce82d9b410f17c43ebf77afd9f5778440ae2b04cbcd83dc86959a652

The **Non-Service Related Postretirement Costs** in Q1 2023 were significantly elevated primarily because of a **$267 million charge** from an **ERISA Litigation Matter** related to a court decision on recalculating benefits under the Colgate-Palmolive Company Employees’ Retirement Income Plan. In addition, there was a minor contribution from the **2022 Global Productivity Initiative**, which charged **$1 million** in Q1 2023 compared to **$19 million** in Q1 2022. This combination of factors drove the costs up substantially in Q1 2023.  **[0000021665-23-000016_cl-20230331.htm:28]** **[0000021665-23-000016_cl-20230331.htm:10]** **[0000021665-23-000016_cl-20230331.htm:37]** 

Why were Non-Service Related Postretirement Costs so high in Q1 2023?

The jump in Provision for Income Taxes in Q2 2023 was driven by a reassessment of prior years’ tax deductions by one of the subsidiaries—a situation referred to as the **foreign tax matter**. This resulted in a **discrete charge of $148 million**, partially offset by the reversal of **$22 million** in previous withholding tax reserves. Additionally, the effective income tax rate increased substantially from **24.0%** in Q2 2022 to **39.8%** in Q2 2023, further contributing to the overall rise in the provision.  **[0000021665-23-000031_cl-20230630.htm:41]** **[0000021665-23-000031_cl-20230630.htm:22]** **[0000021665-23-000031_cl-20230630.htm:43]** 

What drove the jump in Provision for Income Taxes in Q2 2023?

The **Provision for Income Taxes** spiked in **Q4 2023** primarily because the company experienced a much higher **Income Before Income Taxes** of **$988 million** compared to **Q4 2022** and did not incur the **$721 million** in goodwill and intangible asset impairment charges seen in **Q4 2022**. These impairment charges in the previous period had significantly reduced taxable income, and without them in **Q4 2023**, the higher pre-tax income naturally led to an increase in the tax provision. Additionally, differences in the effective tax rates between the two periods also contributed to the change.  **[0001157523-24-000119_a53887925ex99.htm:10]** **[0001157523-24-000119_a53887925ex99.htm:8]** 

Why did Provision for Income Taxes spike in Q4 2023?

The **lower EPS in Q1 2023** was largely driven by one-time charges, including an **ERISA litigation charge of $0.25 per share**, **product recall costs of $0.02 per share**, and **charges of $0.01 per share** related to the 2022 Global Productivity Initiative.  **[0000021665-23-000016_cl-20230331.htm:31]**  In addition, the company faced **higher raw and packaging material costs** and **adverse foreign exchange headwinds**.  **[0001157523-23-000642_a53388924ex99.htm:0]** **[0000021665-23-000016_cl-20230331.htm:34]** **[0000021665-23-000016_cl-20230331.htm:32]**  Notably, when excluding these adjustments, the **Base Business EPS declined by only about 1%** from **$0.74 in Q1 2022** to **$0.73 in Q1 2023**.  **[0001157523-23-000642_a53388924ex99.htm:0]** **[0000021665-23-000016_cl-20230331.htm:31]** 

Why was EPS so low in Q1 2023?

bdd3d636e6153b8d511da9f3decc3d85e745425c4bfdc3fc1bd56faf607c014b

The jump to **1,234 million USD** in Q3 2024 was primarily driven by an increase in operating cash flow—where **2,838 million USD** was generated (up from **2,609 million USD** in the same period in 2023)—along with lower cash used in investing activities (decreasing to **454 million USD** from **599 million USD**) and higher cash usage in financing activities (of **2,110 million USD**). These factors, combined with a minor negative exchange rate impact of **6 million USD**, resulted in an overall increase of **268 million USD** in cash for the period.  **[0000021665-24-000042_q32024pressreleasetables.htm:0]** **[0000021665-24-000044_cl-20240930.htm:53]** **[0000021665-24-000044_cl-20240930.htm:3]** 

Why did Cash and cash equivalents jump to 1,234 in Q3 2024?

The doubling of Debt payable within one-year in Q4 2024 was primarily driven by a significant increase in the current portion of long-term debt. Specifically, the current portion rose from **$20 million** in Q4 2023 to **$652 million** in Q4 2024, reflecting the scheduled maturities of long-term debt due in 2025, where the company had **$652 million** maturing.  **[0000021665-25-000008_cl-20241231.htm:110]** **[0000021665-25-000008_cl-20241231.htm:97]** 

What drove the doubling of Debt payable within one-year in Q4 2024?

The spike in Q1 2024 was mainly due to the redemption of **$500 million in ten-year Medium-Term Notes** that had reached maturity. This redemption was financed through **commercial paper borrowings**, which significantly increased the overall Notes and Loans Payable to **approximately $509–$518 million** in Q1 2024.  **[0000021665-24-000015_cl-20240331.htm:40]** **[0000021665-24-000015_cl-20240331.htm:1]** 

Why did Notes and loans payable spike to 518 in Q1 2024?

The drop in long-term debt in Q4 2024 resulted from several strategic debt management actions. The company reduced its balance from **$8,219 million** at the end of 2023 to **$7,289 million** at the end of 2024 by redeeming **$500 million** of ten-year Medium-Term Notes at maturity (financed through commercial paper borrowings)  **[0000021665-25-000008_cl-20241231.htm:61]** **[0000021665-25-000008_cl-20241231.htm:110]** , making **$503 million** in principal payments  **[0000021665-25-000005_a4q2024pressreleasetables.htm:10]** , and reclassifying its commercial paper—which increased from **$906 million** in 2023 to **$936 million** in 2024—thus impacting the overall debt structure.  **[0000021665-25-000008_cl-20241231.htm:61]** **[0000021665-25-000008_cl-20241231.htm:62]** **[0000021665-25-000008_cl-20241231.htm:97]** 

What caused the significant drop in Long-term debt in Q4 2024?

In Q3 2024, the increase in **total assets** was primarily driven by higher levels of **cash and cash equivalents** (up from **$966 million** to **$1,234 million**), **receivables, net** (up from **$1,586 million** to **$1,712 million**), **inventories** (up from **$1,934 million** to **$2,041 million**), **other current assets** (up from **$793 million** to **$819 million**), and **other assets** (up from **$1,021 million** to **$1,105 million**). These increases, which largely reflected operational activities and strategic financial management during the period, were partially offset by a decline in **property, plant, and equipment, net** (from **$4,582 million** to **$4,421 million**).  **[0000021665-24-000044_cl-20240930.htm:2]** **[0000021665-24-000042_q32024pressreleasetables.htm:8]** 

What factors contributed to the higher Total assets in Q3 2024?

6ee0f895e2563dd85fb551cdf79723db4643af03c97bb69044f0380d722ae3b2

Net Sales (USD, millions)

Cost of Sales (USD, millions)

Gross Profit (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Other (Income) Expense, Net (USD, millions)

Operating Profit (USD, millions)

Non-Service Related Postretirement Costs (USD, millions)

Income Before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net Income Including Noncontrolling Interests (USD, millions)

Less: Net Income Attributable to Noncontrolling Interests (USD, millions)

Net Income Attributable to Colgate-Palmolive Company (USD, millions)

Earnings per Common Share, Basic (USD)

Earnings per Common Share, Diluted (USD)

48121a222e3cd3b81d38b4ee5ff68493a112c505f2a584fa6c4e9c18febff1dd

Net income including noncontrolling interests (USD, millions)

Depreciation and amortization (USD, millions)

Restructuring and termination benefits, net of cash (USD, millions)

Stock-based compensation expense (USD, millions)

Net cash provided by operations (USD, millions)

Capital expenditures (USD, millions)

Purchases of marketable securities and investments (USD, millions)

Proceeds from sale of marketable securities and investments (USD, millions)

Other investing activities (USD, millions)

Net cash used in investing activities (USD, millions)

Short-term borrowing (repayment) less than 90 days, net (USD, millions)

Principal payments on debt (USD, millions)

Proceeds from issuance of debt (USD, millions)

Dividends paid (USD, millions)

Purchases of treasury shares (USD, millions)

Proceeds from exercise of stock options (USD, millions)

Other financing activities (USD, millions)

Net cash used in financing activities (USD, millions)

Effect of exchange rate changes on Cash and cash equivalents (USD, millions)

Net increase (decrease) in Cash and cash equivalents (USD, millions)

Income taxes paid (USD, millions)

Interest paid (USD, millions)

ERISA litigation matter (USD, millions)

Deferred income taxes (USD, millions)

Cash and cash equivalents at beginning of year/period (USD, millions)

Cash and cash equivalents at end of year/period (USD, millions)

428ccab555da79b476e8c05d465d83942205bb5d17828d42fa3b23b0f85779c9

Cash and cash equivalents (USD, millions)

Receivables (net) (USD, millions)

Inventories (USD, millions)

Other current assets (USD, millions)

Property, plant and equipment, net (USD, millions)

Goodwill (USD, millions)

Other intangible assets, net (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Total Colgate-Palmolive Company shareholders’ equity (USD, millions)

Noncontrolling interests (USD, millions)

Total liabilities and equity (USD, millions)

0d4edcc4ca44fc88887b72c9655bb34f1f8357a9b4046d8d7d0c2935a4c44792

2a9b045b3d561a9309457fe6202d5ebe104d090c42799f3e60446c9b630afbe8

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

6f1639af6c7912922760bed00998e3c1196ca19b783606a3d1dc80c9da99c7a7

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

c6fd264dade5cb20a1abc3bc31fddc7159ed02b10dad87ca0d7064e7395a939a

6945b011549ba74793ca40d7ade9250191be9c858a82a734e5fc11306647454a

North America

Latin America

Europe

Europe/South Pacific

Asia

Asia Pacific

Africa/Eurasia

Total Oral, Personal and Home Care

Hill's Pet Nutrition

Total Revenue

f3bd0884d4f18d29e057af19649a6336694aec4d86742e182690826ef8f02e7e

Oral, Personal and Home Care

- Oral Care

- Personal Care

- Home Care

Pet Nutrition

4dd622abebe195ac5d44f1b537e6ffcf907ba4300b7cb66598e36a73be2b9377

COLGATE PALMOLIVE (CL)

Financials