4Q 2023 Net sales and Organic sales both
increased 7.0%
Full Year 2023 Net sales and Organic sales both
increased 8.5%
Colgate-Palmolive Company (NYSE:CL) today reported results for
fourth quarter and full year 2023. Noel Wallace, Chairman,
President and Chief Executive Officer, commented on the Base
Business fourth quarter and full year results, “We are pleased to
have finished the year with another quarter of strong top and
bottom line results including 7.0% net and organic sales growth,
improved organic volume performance, gross and operating profit
margin expansion and double-digit earnings per share growth.
“For the full year, we grew both net and organic sales 8.5%,
with organic sales growth in every division and in all four of our
categories. This was our fifth consecutive year with organic sales
growth at or above our 3% to 5% targeted range.
“The strong sales growth combined with our commitment to
productivity and efficiency drove strong bottom line performance as
well, with gross profit, gross profit margin, operating profit,
operating profit margin, net income, earnings per share and free
cash flow all increasing versus 2022 for both the quarter and the
year.
“We continued to invest in the capabilities required to deliver
robust growth going forward, building strength in areas like
innovation, digital, data and analytics, revenue growth management
and advertising. We leveraged our strong margin performance to
invest behind building our brands, with a 19% increase in
advertising spending in 2023, and we expect higher levels of brand
investment in 2024.
“The quality of our results this year and our strong growth
momentum, including improved organic volume performance, add to our
confidence that we are well positioned to deliver consistent,
compounded earnings per share growth in 2024 and beyond.”
Full Year
- Net sales and Organic sales* both increased 8.5%
- GAAP EPS increased 30% to $2.77 as we lapped goodwill and
intangible assets impairment charges in fourth quarter 2022
- Base Business EPS* increased 9% to $3.23
Full Year Total Company Results
(GAAP)
($ in millions except per share
amounts)
2023
2022
Change
Net Sales
$19,457
$17,967
+8.5%
EPS (diluted)
$2.77
$2.13
+30%
Full Year Total Company Results (Base
Business - Non-GAAP)*
($ in millions except per share
amounts)
2023
2022
Change
Organic Sales Growth
+8.5%
Base Business EPS (diluted)
$3.23
$2.97
+9%
*Indicates a non-GAAP financial measure.
Please refer to “Non-GAAP Financial Measures” later in this release
for definitions of non-GAAP financial measures and to “Table 7 -
Geographic Sales Analysis Percentage Changes” and “Table 9 -
Non-GAAP Reconciliations” included with this release for a
reconciliation of these non-GAAP financial measures to the related
GAAP measures.
Fourth Quarter
- Net sales and Organic sales* both increased 7.0%
- GAAP EPS increased to $0.87 as we lapped goodwill and
intangible assets impairment charges in fourth quarter 2022
- Base Business EPS* increased 13% to $0.87
- GAAP Gross profit margin and Base Business Gross profit margin*
both increased 400 basis points to 59.6%
- Net cash provided by operations was $3,745 for the full year,
up 47% versus 2022
- Colgate’s leadership in toothpaste continued with its global
market share at 41.1% year to date
- Colgate’s leadership in manual toothbrushes continued with its
global market share at 31.5% year to date
Fourth Quarter Total Company Results
(GAAP)
($ in millions except per share
amounts)
2023
2022
Change
Net Sales
$4,950
$4,629
+7.0%
EPS (diluted)
$0.87
$0.01
NM
Fourth Quarter Total Company Results
(Base Business - Non-GAAP)*
($ in millions except per share
amounts)
2023
2022
Change
Organic Sales Growth
+7.0%
Base Business EPS (diluted)
$0.87
$0.77
+13%
NM - Not Meaningful
*Indicates a non-GAAP financial measure.
Please refer to “Non-GAAP Financial Measures” later in this release
for definitions of non-GAAP financial measures and to “Table 6 -
Geographic Sales Analysis Percentage Changes” and “Table 8 -
Non-GAAP Reconciliations” included with this release for a
reconciliation of these non-GAAP financial measures to the related
GAAP measures.
Full Year 2024 Guidance
Based on current spot rates:
- The Company expects net sales growth to be 1% to 4% including a
low-single-digit negative impact from foreign exchange.
- The Company expects organic sales growth to be within its
long-term targeted range of 3% to 5%.
- On a GAAP basis, the Company expects gross profit margin
expansion, increased advertising investment and double-digit
earnings-per-share growth.
- On a non-GAAP (Base Business) basis, the Company expects gross
profit margin expansion, increased advertising investment and mid
to high-single-digit earnings-per-share growth.
Divisional Performance
The following are comments about divisional performance for
fourth quarter 2023 versus the year ago period. See attached "Table
6 - Geographic Sales Analysis Percentage Changes" and "Table 5 -
Segment Information" for additional information on net sales and
operating profit by division.
Fourth Quarter Sales Growth By
Division
(% change 4Q 2023 vs. 4Q 2022)
Net Sales
Organic Sales*
As Reported Volume
Organic Volume
Pricing
FX
North America
+3.5%
+3.5%
+0.5%
+0.5%
+3.0%
—%
Latin America
+18.0%
+16.5%
+8.0%
+8.0%
+8.5%
+1.5%
Europe
+10.0%
+3.5%
-4.0%
-4.0%
+7.5%
+6.5%
Asia Pacific
+0.5%
+1.0%
-4.5%
-4.5%
+5.5%
-0.5%
Africa/Eurasia
-4.0%
+17.0%
+7.5%
+7.5%
+9.5%
-21.0%
Hill's
+5.0%
+4.5%
-4.0%
-4.0%
+8.5%
+0.5%
Total Company
+7.0%
+7.0%
—%
—%
+7.0%
—%
*Indicates a non-GAAP financial measure.
Please refer to “Non-GAAP Financial Measures” later in this release
for definitions of non-GAAP financial measures and to “Table 6 -
Geographic Sales Analysis Percentage Changes” included with this
release for a reconciliation of these non-GAAP financial measures
to the related GAAP measures.
Fourth Quarter Operating Profit By
Division
($ in millions)
4Q 2023
% Change vs 4Q 2022
% to Net Sales
Change in basis points vs 4Q 2022
% to Net Sales
North America
$242
19%
24.2%
+310
Latin America
$366
26%
30.7%
+200
Europe
$140
35%
20.5%
+380
Asia Pacific
$203
12%
29.0%
+300
Africa/Eurasia
$59
-15%
22.3%
-300
Hill's
$231
-1%
20.7%
-130
Total Company, As Reported
$1,072
431%
21.7%
+1,730
Total Company, Base Business*
$1,074
14%
21.7%
+140
*Indicates a non-GAAP financial measure.
Please refer to “Non-GAAP Financial Measures” later in this release
for definitions of non-GAAP financial measures and to “Table 8 -
Non-GAAP Reconciliations” included with this release for a
reconciliation of these non-GAAP financial measures to the related
GAAP measures.
North America (20% of Company
Sales)
- Organic sales growth was led by oral care and personal
care.
- In the United States, Colgate's share of the toothpaste market
is 33.7% year to date and its share of the manual toothbrush market
is 41.1% year to date.
- The increase in Operating profit as a percentage of Net sales
was primarily due to cost savings from the Company’s
funding-the-growth initiatives, lower overhead expenses and higher
pricing, partially offset by increased advertising investment.
Latin America (24% of Company
Sales)
- Organic sales growth was led by Argentina, Mexico, Brazil and
Colombia.
- The increase in Operating profit as a percentage of Net sales
was primarily due to higher pricing, savings from the Company’s
funding-the-growth initiatives and lower raw and packaging material
costs, despite higher foreign exchange transaction costs, partially
offset by losses on marketable securities and a gain on the sale of
other assets and a value-added tax refund in fourth quarter
2022.
Europe (14% of Company
Sales)
- Organic sales growth in the United Kingdom, the Nordic region
and Poland was partially offset by organic sales declines in the
Filorga business and Italy.
- The increase in Operating profit as a percentage of Net sales
was primarily due to cost savings from the Company’s
funding-the-growth initiatives and higher pricing, partially offset
by significantly higher raw and packaging material costs.
Asia Pacific (14% of Company
Sales)
- Organic sales growth in India and Australia was partially
offset by organic sales declines in the Greater China region and
Thailand.
- The increase in Operating profit as a percentage of Net sales
was primarily due to cost savings from the Company's
funding-the-growth initiatives and higher pricing, partially offset
by higher overhead expenses.
Africa/Eurasia (5% of Company
Sales)
- Organic sales growth was led by Turkiye, the Eurasia region,
Nigeria and South Africa.
- The decrease in Operating profit as a percentage of Net sales
was primarily due to higher raw and packaging material costs
predominantly driven by significant foreign exchange transaction
costs, higher overhead expenses and increased advertising
investment, partially offset by higher pricing and cost savings
from the Company’s funding-the-growth initiatives.
Hill's Pet Nutrition (23% of Company
Sales)
- Organic sales growth was led by the United States and
Europe.
- The decrease in Operating profit as a percentage of Net sales
was primarily due to significantly higher raw and packaging
material costs, increased advertising investment and start-up costs
associated with a new manufacturing plant, partially offset by
higher pricing and cost savings from the Company’s
funding-the-growth initiatives.
Prepared Materials and Webcast
Information
At approximately 7:00 a.m. ET today, Colgate will post its
prepared materials (in PDF format) regarding fourth quarter and
full year 2023 results to the Investor Center section of its
website at
https://investor.colgatepalmolive.com/events-and-presentations.
At 8:30 a.m. ET today, Colgate will host a conference call
regarding fourth quarter and full year 2023 results. To access this
call as a webcast, please go to Colgate’s website at
www.colgatepalmolive.com.
About Colgate-Palmolive
Colgate-Palmolive Company is a caring, innovative growth company
that is reimagining a healthier future for all people, their pets
and our planet. Focused on Oral Care, Personal Care, Home Care and
Pet Nutrition, we sell our products in more than 200 countries and
territories under brands such as Colgate, Palmolive, elmex, hello,
meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring,
PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion,
Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and
Hill’s Prescription Diet. We are recognized for our leadership and
innovation in promoting sustainability and community wellbeing,
including our achievements in decreasing plastic waste and
promoting recyclability, saving water, conserving natural resources
and improving children’s oral health through the Colgate Bright
Smiles, Bright Futures program, which has reached approximately 1.7
billion children and families since 1991. For more information
about Colgate’s global business and how we are building a future to
smile about, visit www.colgatepalmolive.com. CL-E
The Company's annual meeting of stockholders is currently
scheduled for Friday, May 10, 2024.
Market Share Information
Management uses market share information as a key indicator to
monitor business health and performance. References to market share
in this press release are based on a combination of consumption and
market share data provided by third-party vendors, primarily
Nielsen, and internal estimates. All market share references
represent the percentage of the dollar value of sales of our
products, relative to all product sales in the category in the
countries in which the Company competes and purchases data
(excluding Venezuela from all periods).
Market share data is subject to limitations on the availability
of up-to-date information. In particular, market share data is
currently not generally available for certain retail channels, such
as eCommerce and certain club retailers and discounters. The
Company measures year-to-date market shares from January 1 of the
relevant year through the most recent period for which market share
data is available, which typically reflects a lag time of one or
two months. The Company believes that the third-party vendors it
uses to provide data are reliable, but it has not verified the
accuracy or completeness of the data or any assumptions underlying
the data. In addition, market share information reported by the
Company may be different from market share information reported by
other companies due to differences in category definitions, the use
of data from different countries, internal estimates and other
factors.
Cautionary Statement on Forward-Looking
Statements
This press release and the related webcast may contain
forward-looking statements (as that term is defined in the U.S.
Private Securities Litigation Reform Act of 1995 or by the
Securities and Exchange Commission (SEC) in its rules, regulations
and releases) that set forth anticipated results based on
management’s current plans and assumptions. Such statements may
relate, for example, to sales or volume growth, net selling price
increases, organic sales growth, profit or profit margin levels,
earnings per share levels, financial goals, the impact of foreign
exchange, the impact of the war in Ukraine, the impact of the
Israel-Hamas war, cost-reduction plans (including the 2022 Global
Productivity Initiative), tax rates, interest rates, new product
introductions, digital capabilities, commercial investment levels,
acquisitions, divestitures, share repurchases or legal or tax
proceedings, among other matters. These statements are made on the
basis of the Company’s views and assumptions as of this time and
the Company undertakes no obligation to update these statements
whether as a result of new information, future events or otherwise,
except as required by law or by the rules and regulations of the
SEC. Moreover, the Company does not, nor does any other person,
assume responsibility for the accuracy and completeness of these
statements. The Company cautions investors that any such
forward-looking statements are not guarantees of future performance
and that actual events or results may differ materially from those
statements. For more information about factors that could impact
the Company’s business and cause actual results to differ
materially from forward-looking statements, investors should refer
to the Company’s filings with the SEC (including, but not limited
to, the information set forth under the captions “Risk Factors” and
“Cautionary Statement on Forward-Looking Statements” in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2022 and subsequent filings with the SEC). Copies of these
filings may be obtained upon request from the Company’s Investor
Relations Department or on the Company’s website at
www.colgatepalmolive.com.
Non-GAAP Financial
Measures
The following provides definitions and other information
regarding the non-GAAP financial measures used in this press
release and the related prepared materials and webcast, which may
not be the same as or comparable to similar measures presented by
other companies:
- Base Business: Base Business refers to non-GAAP measures of
operating results that exclude certain items. Base Business
operating results exclude, as applicable, charges related to an
ERISA litigation matter, a foreign tax matter and the 2022 Global
Productivity Initiative, product recall costs, goodwill and
intangible assets impairment charges, a gain on the sale of land in
Asia Pacific and acquisition-related costs.
- Organic sales growth: Net sales growth excluding the impact of
foreign exchange, acquisitions and divestments.
- Free cash flow before dividends: Net cash provided by
operations less Capital expenditures.
This press release discusses Net sales growth (GAAP) and Organic
sales growth (non-GAAP). Management believes the organic sales
growth measure provides investors and analysts with useful
supplemental information regarding the Company’s underlying sales
trends by presenting sales growth excluding the external factor of
foreign exchange as well as the impact from acquisitions and
divestments. See “Geographic Sales Analysis Percentage Changes” for
the three and twelve months ended December 31, 2023 versus 2022
included with this release for a comparison of Organic sales growth
to Net sales growth in accordance with GAAP.
Gross profit, Gross profit margin, Selling, general and
administrative expenses, Selling, general and administrative
expenses as a percentage of Net sales, Other (income) expense, net,
Operating profit, Operating profit margin, Non-service related
postretirement costs, Effective income tax rate, Net income
attributable to Colgate-Palmolive Company and Diluted earnings per
common share are disclosed on both an as reported (GAAP) and Base
Business (non-GAAP) basis. These non-GAAP financial measures
exclude items that, either by their nature or amount, management
would not expect to occur as part of the Company’s normal business
on a regular basis, such as restructuring charges, charges for
certain litigation and tax matters, acquisition-related costs,
gains and losses from certain divestitures and certain other
unusual, non-recurring items. Investors and analysts use these
financial measures in assessing the Company’s business performance,
and management believes that presenting these financial measures on
a non-GAAP basis provides them with useful supplemental information
to enhance their understanding of the Company’s underlying business
performance and trends. These non-GAAP financial measures also
enhance the ability to compare period-to-period financial results.
See “Non-GAAP Reconciliations” for the three and twelve months
ended December 31, 2023 and 2022 included with this release for a
reconciliation of these financial measures to the related GAAP
measures.
The Company uses these financial measures internally in its
budgeting process, to evaluate segment and overall operating
performance and as factors in determining compensation. While the
Company believes that these financial measures are useful in
evaluating the Company’s underlying business performance and
trends, this information should be considered as supplemental in
nature and is not meant to be considered in isolation or as a
substitute for the related financial information prepared in
accordance with GAAP.
As management uses free cash flow before dividends to evaluate
the Company’s ability to satisfy current and future obligations,
pay dividends, fund future business opportunities and repurchase
stock, the Company believes that it provides useful information to
investors. Free cash flow before dividends is not a measure of cash
available for discretionary expenditures since the Company has
certain non-discretionary obligations such as debt service that are
not deducted from the measure. See “Condensed Consolidated
Statements of Cash Flows” for the twelve months ended December 31,
2023 and 2022 for a comparison of free cash flow before dividends
to Net cash provided by operations as reported in accordance with
GAAP.
(See attached tables for fourth quarter and
full year results.)
Table 1
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Income
For the Three Months Ended
December 31, 2023 and 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2023
2022
Net sales
$
4,950
$
4,629
Cost of sales
2,000
2,055
Gross profit
2,950
2,574
Gross profit margin
59.6
%
55.6
%
Selling, general and administrative
expenses
1,803
1,633
Other (income) expense, net
75
18
Goodwill and intangible assets impairment
charges
—
721
Operating profit
1,072
202
Operating profit margin
21.7
%
4.4
%
Non-service related postretirement
costs
22
15
Interest (income) expense, net
62
55
Income before income taxes
988
132
Provision for income taxes
228
89
Effective tax rate
23.1
%
67.4
%
Net income including noncontrolling
interests
760
43
Less: Net income attributable to
noncontrolling interests
42
38
Net income attributable to
Colgate-Palmolive Company
$
718
$
5
Earnings per common share
Basic
$
0.87
$
0.01
Diluted
$
0.87
$
0.01
Supplemental Income Statement
Information
Average common shares outstanding
Basic
823.4
832.6
Diluted
825.1
834.4
Advertising
$
593
$
504
Table 2
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Income
For the Twelve Months Ended
December 31, 2023 and 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2023
2022
Net sales
$
19,457
$
17,967
Cost of sales
8,131
7,719
Gross profit
11,326
10,248
Gross profit margin
58.2
%
57.0
%
Selling, general and administrative
expenses
7,151
6,565
Other (income) expense, net
191
69
Goodwill and intangible assets impairment
charges
—
721
Operating profit
3,984
2,893
Operating profit margin
20.5
%
16.1
%
Non-service related postretirement
costs
360
80
Interest (income) expense, net
232
153
Income before income taxes
3,392
2,660
Provision for income taxes
937
693
Effective tax rate
27.6
%
26.1
%
Net income including noncontrolling
interests
2,455
1,967
Less: Net income attributable to
noncontrolling interests
155
182
Net income attributable to
Colgate-Palmolive Company
$
2,300
$
1,785
Earnings per common share
Basic(1)
$
2.78
$
2.13
Diluted(1)
$
2.77
$
2.13
Supplemental Income Statement
Information
Average common shares outstanding
Basic
827.4
836.4
Diluted
829.2
838.8
Advertising
$
2,371
$
1,997
Note:
(1) Basic and diluted earnings per share
are computed independently for each quarter and any year-to-date
period presented. As a result of changes in shares outstanding
during the year and rounding, the sum of the quarters' earnings per
share may not equal the earnings per share for any year-to-date
period.
Table 3
Colgate-Palmolive
Company
Condensed Consolidated Balance
Sheets
As of December 31, 2023 and
December 31, 2022
(Dollars in Millions)
(Unaudited)
2023
2022
Cash and cash equivalents
$
966
$
775
Receivables, net
1,586
1,504
Inventories
1,934
2,074
Other current assets
793
760
Property, plant and equipment, net
4,582
4,307
Goodwill
3,410
3,352
Other intangible assets, net
1,887
1,920
Other assets
1,235
1,039
Total assets
$
16,393
$
15,731
Total debt
8,549
8,766
Other current liabilities
4,411
3,979
Other non-current liabilities
2,476
2,180
Total liabilities
15,436
14,925
Total Colgate-Palmolive Company
shareholders’ equity
609
401
Noncontrolling interests
348
405
Total liabilities and equity
$
16,393
$
15,731
Supplemental Balance Sheet
Information
Debt less cash, cash equivalents and
marketable securities(1)
$
7,404
$
7,816
Working capital % of sales
(1.4
)%
1.0
%
Note:
(1) Marketable securities of $179 and $175
as of December 31, 2023 and 2022, respectively, are included in
Other current assets.
Table 4
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Cash Flows
For the Twelve Months Ended
December 31, 2023 and 2022
(Dollars in Millions)
(Unaudited)
2023
2022
Operating Activities
Net income including noncontrolling
interests
$
2,455
$
1,967
Adjustments to reconcile Net income
including noncontrolling interests to Net cash provided by
operations:
Depreciation and amortization
567
545
ERISA litigation matter
267
—
Restructuring and termination benefits,
net of cash
(23
)
49
Stock-based compensation expense
122
125
Gain on the sale of land
—
(47
)
Goodwill and intangible assets impairment
charges
—
721
Deferred income taxes
(98
)
(78
)
Cash effects of changes in:
Receivables
(37
)
(227
)
Inventories
194
(333
)
Accounts payable and other accruals
309
(115
)
Other non-current assets and
liabilities
(11
)
(51
)
Net cash provided by operations
3,745
2,556
Investing Activities
Capital expenditures
(705
)
(696
)
Purchases of marketable securities and
investments
(506
)
(470
)
Proceeds from sale of marketable
securities and investments
502
322
Payment for acquisitions, net of cash
acquired
—
(809
)
Proceeds from the sale of land
—
47
Other investing activities
(33
)
5
Net cash used in investing activities
(742
)
(1,601
)
Financing Activities
Short-term borrowing (repayment) less than
90 days, net
(906
)
540
Principal payments on debt
(903
)
(406
)
Proceeds from issuance of debt
1,495
1,513
Dividends paid
(1,749
)
(1,691
)
Purchases of treasury shares
(1,128
)
(1,308
)
Proceeds from exercise of stock
options
380
418
Other financing activities
18
(18
)
Net cash used in financing activities
(2,793
)
(952
)
Effect of exchange rate changes on Cash
and cash equivalents
(19
)
(60
)
Net increase (decrease) in Cash and cash
equivalents
191
(57
)
Cash and cash equivalents at beginning of
the period
775
832
Cash and cash equivalents at end of the
period
$
966
$
775
Supplemental Cash Flow
Information
Free cash flow before dividends (Net cash
provided by operations less Capital expenditures)
Net cash provided by operations
3,745
2,556
Less: Capital expenditures
(705
)
(696
)
Free cash flow before dividends
$
3,040
$
1,860
Income taxes paid
$
937
$
945
Interest paid
$
280
$
151
Table 5
Colgate-Palmolive
Company
Segment Information
For the Three and Twelve
Months Ended December 31, 2023 and 2022
(Dollars in Millions)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Net Sales
Oral, Personal and Home Care
North America
$
999
$
966
$
3,925
$
3,816
Latin America
1,192
1,011
4,640
3,982
Europe
685
623
2,737
2,548
Asia Pacific
698
696
2,782
2,826
Africa/Eurasia
262
273
1,083
1,082
Total Oral, Personal and Home Care
3,836
3,569
15,167
14,254
Pet Nutrition
1,114
1,060
4,290
3,713
Total Net Sales
$
4,950
$
4,629
$
19,457
$
17,967
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Operating Profit
Oral, Personal and Home Care
North America
$
242
$
204
$
892
$
761
Latin America
366
290
1,417
1,108
Europe
140
104
552
514
Asia Pacific
203
181
767
737
Africa/Eurasia
59
69
254
228
Total Oral, Personal and Home Care
1,010
848
3,882
3,348
Pet Nutrition
231
233
806
850
Corporate(1)
(169
)
(879
)
(704
)
(1,305
)
Total Operating Profit
$
1,072
$
202
$
3,984
$
2,893
Note:
(1) Corporate operations include costs
related to stock options and restricted stock units, research and
development costs, Corporate overhead costs, restructuring and
related implementation charges and gains and losses on sales of
non-core product lines and assets.
Corporate Operating profit (loss) for the
three months ended December 31, 2023 included charges resulting
from the 2022 Global Productivity Initiative of $2.
Corporate Operating profit (loss) for the
twelve months ended December 31, 2023 included charges resulting
from the 2022 Global Productivity Initiative of $27 and product
recall costs of $25.
Corporate Operating profit (loss) for the
three months ended December 31, 2022 included goodwill and
intangible assets impairment charges of $721, charges resulting
from the 2022 Global Productivity Initiative of $15 and
acquisition-related costs of $3.
Corporate Operating profit (loss) for the
twelve months ended December 31, 2022 included goodwill and
intangible assets impairment charges of $721, charges resulting
from the 2022 Global Productivity Initiative of $95, a gain on the
sale of land in Asia Pacific of $47 and acquisition-related costs
of $19.
Table 6
Colgate-Palmolive
Company
Geographic Sales Analysis
Percentage Changes
For the Three Months Ended
December 31, 2023 vs. 2022
(Unaudited)
COMPONENTS OF SALES
CHANGE
Pricing
Coupons
Sales
Consumer &
Change
Organic
As Reported
Organic
Trade
Foreign
Region
As
Reported
Sales
Change
Volume
Volume
Incentives
Exchange
Total Company
7.0
%
7.0
%
—
%
—
%
7.0
%
—
%
North America
3.5
%
3.5
%
0.5
%
0.5
%
3.0
%
—
%
Latin America
18.0
%
16.5
%
8.0
%
8.0
%
8.5
%
1.5
%
Europe
10.0
%
3.5
%
(4.0
)%
(4.0
)%
7.5
%
6.5
%
Asia Pacific
0.5
%
1.0
%
(4.5
)%
(4.5
)%
5.5
%
(0.5
)%
Africa/Eurasia
(4.0
)%
17.0
%
7.5
%
7.5
%
9.5
%
(21.0
)%
Total CP Products
7.5
%
7.5
%
1.0
%
1.0
%
6.5
%
—
%
Hill’s
5.0
%
4.5
%
(4.0
)%
(4.0
)%
8.5
%
0.5
%
Emerging Markets(1)
9.0
%
10.5
%
2.5
%
2.5
%
8.0
%
(1.5
)%
Developed Markets
5.5
%
4.0
%
(2.0
)%
(2.0
)%
6.0
%
1.5
%
Note:
(1) Emerging Markets include Latin
America, Asia (excluding Japan), Africa/Eurasia and Central
Europe.
Table 7
Colgate-Palmolive
Company
Geographic Sales Analysis
Percentage Changes
For the Twelve Months Ended
December 31, 2023 vs. 2022
(Unaudited)
COMPONENTS OF SALES
CHANGE
Pricing
Coupons
Sales
Consumer &
Change
Organic
As Reported
Organic
Trade
Foreign
Region
As
Reported
Sales
Change
Volume(1)
Volume
Incentives
Exchange
Total Company
8.5
%
8.5
%
(0.5
)%
(1.5
)%
10.0
%
(1.0
)%
North America
3.0
%
3.0
%
(4.5
)%
(4.5
)%
7.5
%
—
%
Latin America
16.5
%
15.5
%
2.5
%
2.5
%
13.0
%
1.0
%
Europe
7.5
%
5.0
%
(4.5
)%
(4.5
)%
9.5
%
2.5
%
Asia Pacific
(1.5
)%
2.5
%
(3.5
)%
(3.5
)%
6.0
%
(4.0
)%
Africa/Eurasia
—
%
17.5
%
4.5
%
4.5
%
13.0
%
(17.5
)%
Total CP Products
6.5
%
8.0
%
(1.5
)%
(1.5
)%
9.5
%
(1.5
)%
Hill’s
15.5
%
10.5
%
5.0
%
(0.5
)%
11.0
%
(0.5
)%
Emerging Markets(2)
8.0
%
11.0
%
—
%
—
%
11.0
%
(3.0
)%
Developed Markets
8.5
%
6.5
%
(0.5
)%
(2.5
)%
9.0
%
—
%
Notes:
(1) The impact of the previously disclosed
acquisitions of pet food businesses on as reported volume was 1.0%,
5.5% and 2.0% for Total Company, Hill's and Developed Markets,
respectively.
(2) Emerging Markets include Latin
America, Asia (excluding Japan), Africa/Eurasia and Central
Europe.
Table 8
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Three Months Ended
December 31, 2023 and 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
Selling, General and Administrative
Expenses
2023
2022
Selling, general and administrative
expenses, GAAP
$
1,803
$
1,633
2022 Global Productivity Initiative
—
(1
)
Selling, general and administrative
expenses, non-GAAP
$
1,803
$
1,632
Other (Income) Expense, Net
2023
2022
Other (income) expense, net, GAAP
$
75
$
18
2022 Global Productivity Initiative
(2
)
(14
)
Acquisition-related costs
—
(3
)
Other (income) expense, net, non-GAAP
$
73
$
1
Operating Profit
2023
2022
% Change
Operating profit, GAAP
$
1,072
$
202
431
%
2022 Global Productivity Initiative
2
15
Goodwill and intangible assets impairment
charges
—
721
Acquisition-related costs
—
3
Operating profit, non-GAAP
$
1,074
$
941
14
%
Basis Point
Operating Profit Margin
2023
2022
Change
Operating profit margin, GAAP
21.7
%
4.4
%
1,730
2022 Global Productivity Initiative
—
%
0.3
%
Goodwill and intangible assets impairment
charges
—
%
15.5
%
Acquisition-related costs
—
%
0.1
%
Operating profit margin, non-GAAP
21.7
%
20.3
%
140
Non-service related post retirement
cost
2023
2022
Non-service related post retirement cost,
GAAP
$
22
$
15
2022 Global Productivity Initiative
(1
)
(2
)
Non-service post retirement cost,
non-GAAP
$
21
$
13
Table 8
Continued
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Three Months Ended
December 31, 2023 vs. 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2023
Income Before Income
Taxes
Provision For Income
Taxes(1)
Net Income
Including Noncontrolling Interests
Net Income Attributable
To Colgate- Palmolive Company
Effective Income Tax
Rate(2)
Diluted Earnings Per
Share
As Reported GAAP
$
988
$
228
$
760
$
718
23.1
%
$
0.87
2022 Global Productivity Initiative
3
1
2
2
—
%
—
Non-GAAP
$
991
$
229
$
762
$
720
23.1
%
$
0.87
2022
Income Before Income
Taxes
Provision For Income
Taxes(1)
Net Income
Including Noncontrolling Interests
Net Income Attributable
To Colgate- Palmolive Company
Effective Income Tax
Rate(2)
Diluted Earnings Per
Share
As Reported GAAP
$
132
$
89
$
43
$
5
67.4
%
$
0.01
Goodwill and intangible assets impairment
charges
721
101
620
620
(45.1
)%
0.74
2022 Global Productivity Initiative
17
3
14
14
(0.1
)%
0.02
Acquisition-related costs
3
1
2
2
—
%
—
Non-GAAP
$
873
$
194
$
679
$
641
22.2
%
$
0.77
The impact of non-GAAP adjustments may not
necessarily equal the difference between “GAAP” and “non-GAAP” as a
result of rounding.
Notes:
(1) The income tax effect on non-GAAP
items is calculated based upon the tax laws and statutory income
tax rates applicable in the tax jurisdiction(s) of the underlying
non-GAAP adjustment.
(2) The impact of non-GAAP items on the
Company’s effective tax rate represents the difference in the
effective tax rate calculated with and without the non-GAAP
adjustment on Income before income taxes and Provision for income
taxes.
Table 9
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Twelve Months Ended
December 31, 2023 vs. 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
Gross Profit
2023
2022
Gross profit, GAAP
$
11,326
$
10,248
2022 Global Productivity Initiative
1
—
Gross profit, non-GAAP
$
11,327
$
10,248
Selling, General and Administrative
Expenses
2023
2022
Selling, general and administrative
expenses, GAAP
$
7,151
$
6,565
2022 Global Productivity Initiative
(2
)
(5
)
Selling, general and administrative
expenses, non-GAAP
$
7,149
$
6,560
Basis Point
Selling, General and Administrative
Expenses as a Percentage of Net Sales
2023
2022
Change
Selling, general and administrative
expenses as a percentage of Net sales, GAAP
36.8
%
36.5
%
30
2022 Global Productive Initiative
(0.1
)%
—
%
Selling, general and administrative
expenses as a percentage of Net sales, non-GAAP
36.7
%
36.5
%
20
Other (Income) Expense, Net
2023
2022
Other (income) expense, net, GAAP
$
191
$
69
Product recall costs
(25
)
—
2022 Global Productivity Initiative
(24
)
(90
)
Gain on the sale of land in Asia
Pacific
—
47
Acquisition-related costs
—
(19
)
Other (income) expense, net, non-GAAP
$
142
$
7
Operating Profit
2023
2022
% Change
Operating profit, GAAP
$
3,984
$
2,893
38
%
2022 Global Productivity Initiative
27
95
Product recall costs
25
—
Goodwill and intangible assets impairment
charges
—
721
Gain on the sale of land in Asia
Pacific
—
(47
)
Acquisition-related costs
—
19
Operating profit, non-GAAP
$
4,036
$
3,681
10
%
Basis Point
Operating Profit Margin
2023
2022
Change
Operating profit margin, GAAP
20.5
%
16.1
%
440
2022 Global Productivity Initiative
0.1
%
0.5
%
Product recall costs
0.1
%
—
%
Goodwill and intangible assets impairment
charges
—
%
4.0
%
Gain on the sale of land in Asia
Pacific
—
%
(0.2
)%
Acquisition-related costs
—
%
0.1
%
Operating profit margin, non-GAAP
20.7
%
20.5
%
20
Non-service related post retirement
cost
2023
2022
Non-service related post retirement cost,
GAAP
$
360
$
80
ERISA litigation matter
(267
)
—
2022 Global Productivity Initiative
(5
)
(15
)
Non-service post retirement cost,
non-GAAP
$
88
$
65
Table 9
Continued
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Twelve Months Ended
December 31, 2023 vs. 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2023
Income Before Income
Taxes
Provision For Income
Taxes(1)
Net Income
Including Noncontrolling Interests
Less: Income Attributable to
Noncontrolling Interests
Net Income Attributable
To Colgate- Palmolive Company
Effective Income Tax
Rate(2)
Diluted Earnings Per
Share
As Reported GAAP
$
3,392
$
937
$
2,455
$
155
$
2,300
27.6
%
$
2.77
ERISA litigation matter
267
55
212
—
212
(0.5
)%
0.26
Foreign tax matter
—
(126
)
126
—
126
(3.4
)%
0.15
2022 Global Productivity Initiative
32
6
26
1
25
(0.1
)%
0.03
Product recall costs
25
6
19
—
19
—
%
0.02
Non-GAAP
$
3,716
$
878
$
2,838
$
156
$
2,682
23.6
%
$
3.23
2022
Income Before Income
Taxes
Provision For Income
Taxes(1)
Net Income
Including Noncontrolling Interests
Less: Income Attributable to
Noncontrolling Interests
Net Income Attributable
To Colgate- Palmolive Company
Effective Income Tax
Rate(2)
Diluted Earnings Per
Share
As Reported GAAP
$
2,660
$
693
$
1,967
$
182
$
1,785
26.1
%
$
2.13
Goodwill and intangible assets impairment
charges
721
101
620
—
620
(2.6
)%
0.74
2022 Global Productivity Initiative
110
22
88
1
87
(0.1
)%
0.10
Gain on the sale of land in Asia
Pacific
(47
)
(11
)
(36
)
(21
)
(15
)
—
%
(0.02
)
Acquisition-related costs
19
3
16
—
16
(0.1
)%
0.02
Non-GAAP
$
3,463
$
808
$
2,655
$
162
$
2,493
23.3
%
$
2.97
The impact of non-GAAP adjustments may not
necessarily equal the difference between “GAAP” and “non-GAAP” as a
result of rounding.
Notes:
(1) The income tax effect on non-GAAP
items is calculated based upon the tax laws and statutory income
tax rates applicable in the tax jurisdiction(s) of the underlying
non-GAAP adjustment.
(2) The impact of non-GAAP items on the
Company’s effective tax rate represents the difference in the
effective tax rate calculated with and without the non-GAAP
adjustment on Income before income taxes and Provision for income
taxes.
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Investor Relations: investor_relations@colpal.com
Communications: colgate_palmolive_media_inquiry@colpal.com
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