Colgate-Palmolive Company (NYSE:CL):
- Net sales increased 9.5%, Organic sales* increased 5.0%
- On a GAAP basis, EPS grew 12% to $0.83; On a Base Business
basis, EPS* grew 8% to $0.80
- GAAP Gross profit margin and Base Business Gross profit margin*
decreased 80 basis points to 60.0%
- Net cash provided by operations was $1,225 million for the
first six months of 2021
- Colgate’s leadership in toothpaste continued with its global
market share at 39.3% year to date
- Colgate’s leadership in manual toothbrushes continued with its
global market share at 30.8% year to date
- The Company updated its financial guidance for full year
2021
Second Quarter Total Company Results
(GAAP)
($ in millions except per share
amounts)
2021
2020
Change
Net Sales
$4,260
$3,897
+9.5%
EPS (diluted)
$0.83
$0.74
+12%
Second Quarter Total Company Results
(Base Business - Non-GAAP)*
($ in millions except per share
amounts)
2021
2020
Change
Organic Sales Growth
+5.0%
Base Business EPS (diluted)
$0.80
$0.74
+8%
*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.
Colgate-Palmolive Company (NYSE:CL) today reported results for
second quarter 2021. Noel Wallace, Chairman, President and Chief
Executive Officer, commented on the second quarter results, “We are
pleased that our strong growth momentum continued in the second
quarter, even as we operated in an environment marked by
significant volatility. Net sales increased 9.5% and organic sales
grew 5.0% driven by both volume growth and higher pricing. This is
our tenth consecutive quarter delivering organic sales growth
either in or above our targeted range of 3% to 5%.
“Despite significant raw material and logistics cost headwinds,
we delivered another quarter of increased operating profit, net
income and earnings per share on a Base Business basis. We expect
the difficult cost environment to continue in the back half of the
year and we remain sharply focused on our funding the growth and
revenue growth management initiatives.
“As we look around the world, there is still much uncertainty
stemming from the COVID-19 pandemic, including volatility in
consumer demand and currencies and supply chain disruptions. In the
face of these challenges, Colgate people everywhere remain
committed to achieving our business goals by driving premium
innovation, executing with agility and leveraging digital in all
areas of our business. I am confident that our investment choices
and growth strategies will help us manage through this difficult
time.”
Full Year 2021 Guidance
Based on current spot rates:
- The Company still expects net sales to be up 4% to 7% including
a low-single-digit benefit from foreign exchange.
- The Company still expects organic sales to be up within its
long-term targeted range of 3% to 5%.
- On a GAAP basis, the Company now expects a decline in gross
profit margin, increased advertising investment and
earnings-per-share growth at the lower end of its low to
mid-single-digit range.
- On a non-GAAP (Base Business) basis, the Company now expects a
decline in gross profit margin, increased advertising investment
and earnings-per-share growth at the lower end of its mid to
high-single-digit range.
Divisional Performance
The following are comments about divisional performance for
second quarter 2021 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.
Second Quarter Sales Growth By
Division
(% change 2Q 2021 vs. 2Q 2020)
Net
Sales
Organic
Sales*
As Reported
Volume
Organic Volume
Pricing
FX
North America
-4.0%
-4.5%
-8.5%
-8.5%
+4.0%
+0.5%
Latin America
+12.5%
+8.5%
+2.5%
+2.5%
+6.0%
+4.0%
Europe
+15.0%
+5.0%
+7.0%
+7.0%
-2.0%
+10.0%
Asia Pacific
+7.5%
+1.0%
+3.5%
+3.5%
-2.5%
+6.5%
Africa/Eurasia
+15.5%
+13.0%
+9.5%
+9.5%
+3.5%
+2.5%
Hill's
+18.0%
+15.0%
+10.5%
+10.5%
+4.5%
+3.0%
Total Company
+9.5%
+5.0%
+2.5%
+2.5%
+2.5%
+4.5%
*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.
Second Quarter Operating Profit By
Division
($ in millions)
2Q 2021
% Change vs
2Q 2020
% to Net
Sales
Change in basis
points vs 2Q 2020
% to Net Sales
North America
$200
-21%
21.9%
-490
Latin America
$254
11%
28.0%
-40
Europe
$166
5%
23.4%
-220
Asia Pacific
$200
14%
29.7%
+150
Africa/Eurasia
$55
-2%
20.8%
-370
Hill's
$212
11%
26.7%
-170
Total Company, As Reported
$996
5%
23.4%
-90
Total Company, Base Business*
$970
3%
22.8%
-150
*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 (21% of Company
Sales)
- The organic sales decline was largely driven by the United
States. Within the United States, organic sales declines in
personal care and home care were partially offset by organic sales
growth in oral care.
- In the United States, Colgate's share of the toothpaste market
is 34.2% year to date and its share of the manual toothbrush market
is 39.3% year to date.
- The decrease in Operating profit as a percentage of Net sales
was primarily due to significantly higher raw and packaging
material costs, higher overhead expenses, largely driven by higher
logistics costs, and increased advertising investment, partially
offset by cost savings from the Company’s funding-the-growth
initiatives and higher pricing.
Latin America (21% of Company
Sales)
- Organic sales growth in Mexico, Brazil and Argentina was
partially offset by an organic sales decline in Colombia.
- The decrease in Operating profit as a percentage of Net sales
was primarily due to significantly higher raw and packaging
material costs and higher overhead expenses, primarily driven by
higher logistics costs, partially offset by cost savings from the
Company’s funding-the-growth initiatives, higher pricing and
decreased advertising investment.
Europe (17% of Company
Sales)
- Organic sales growth was led by the United Kingdom, Germany,
Poland and the Nordic region.
- The decrease in Operating profit as a percentage of Net sales
was primarily due to higher raw and packaging material costs,
increased advertising investment and lower pricing, partially
offset by cost savings from the Company’s funding-the-growth
initiatives and lower overhead expenses.
Asia Pacific (16% of Company
Sales)
- Organic sales growth in India and Thailand was partially offset
by organic sales declines in the Greater China region.
- 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, decreased advertising investment
and lower overhead expenses, partially offset by lower pricing and
higher raw and packaging material costs, net of foreign exchange
transaction benefits.
Africa/Eurasia (6% of Company
Sales)
- Organic sales growth was led by Turkiye, Nigeria and
Russia.
- The decrease in Operating profit as a percentage of Net sales
was primarily due to significantly higher raw and packaging
material costs and increased advertising investment, partially
offset by cost savings from the Company’s funding-the-growth
initiatives, higher pricing and lower overhead expenses despite
significant increases in logistics costs.
Hill's Pet Nutrition (19% of Company
Sales)
- Organic sales growth was led by the United States, Latin
America and Europe.
- The decrease in Operating profit as a percentage of Net sales
was primarily due to higher raw and packaging material costs and
increased advertising investment, partially offset by higher
pricing and cost savings from the Company’s funding-the-growth
initiatives.
Webcast Information
At 8:30 a.m. ET today, Colgate will host a conference call
regarding second quarter 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
reimagining a healthier future for all people, their pets and our
planet. Focused on Oral Care, Personal Care, Home Care and Pet
Nutrition, the Company sells its 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. The Company is recognized for
its leadership and innovation in promoting environmental
sustainability and community well-being, including its achievements
in saving water, reducing waste, promoting recyclability and
improving children’s oral health through its Bright Smiles, Bright
Futures program, which has reached more than 1.3 billion children
since 1991. For more information about Colgate’s global business
and how the Company is building a future to smile about, visit
www.colgatepalmolive.com. CL-E
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 certain limited circumstances, the COVID-19 pandemic
has impacted the ability of our third-party vendors to provide the
Company with reliable updated market share 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 growth,
earnings per share levels, financial goals, the impact of foreign
exchange, the impact of COVID-19, cost-reduction plans, tax rates,
new product introductions, 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, 2020 and subsequent Quarterly Reports on Form 10-Q). 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/or the related 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, a value-added tax matter
in Brazil, acquisition-related costs and a benefit related to a
reorganization of the ownership structure of certain foreign
subsidiaries and a new operating structure implemented within one
of the Company's divisions.
- 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 six months ended June 30, 2021 versus 2020 included
with this release for a comparison of Organic sales growth to Net
sales growth in accordance with GAAP.
Worldwide Gross profit, Gross profit margin, Other (income)
expense, net, Operating profit, Operating profit margin, 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, gains and losses from certain acquisitions, 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 six months ended June 30, 2021 and 2020 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 six months ended June 30, 2021
and 2020 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 second quarter
results.)
Table 1
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Income
For the Three Months Ended
June 30, 2021 and 2020
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2021
2020
Net sales
$
4,260
$
3,897
Cost of sales
1,704
1,528
Gross profit
2,556
2,369
Gross profit margin
60.0
%
60.8
%
Selling, general and administrative
expenses
1,568
1,395
Other (income) expense, net
(8
)
28
Operating profit
996
946
Operating profit margin
23.4
%
24.3
%
Non-service related postretirement
costs
18
20
Interest (income) expense, net
25
35
Income before income taxes
953
891
Provision for income taxes
212
216
Effective tax rate
22.2
%
24.2
%
Net income including noncontrolling
interests
741
675
Less: Net income attributable to
noncontrolling interests
38
40
Net income attributable to
Colgate-Palmolive Company
$
703
$
635
Earnings per common share
Basic
$
0.83
$
0.74
Diluted
$
0.83
$
0.74
Supplemental Income Statement
Information
Average common shares outstanding
Basic
845.6
857.4
Diluted
849.4
858.9
Advertising
$
494
$
439
Table 2
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Income
For the Six Months Ended June
30, 2021 and 2020
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2021
2020
Net sales
$
8,604
$
7,994
Cost of sales
3,411
3,160
Gross profit
5,193
4,834
Gross profit margin
60.4
%
60.5
%
Selling, general and administrative
expenses
3,173
2,868
Other (income) expense, net
20
68
Operating profit
2,000
1,898
Operating profit margin
23.2
%
23.7
%
Non-service related postretirement
costs
36
41
Interest (income) expense, net
54
71
Income before income taxes
1,910
1,786
Provision for income taxes
441
363
Effective tax rate
23.1
%
20.3
%
Net income including noncontrolling
interests
1,469
1,423
Less: Net income attributable to
noncontrolling interests
85
73
Net income attributable to
Colgate-Palmolive Company
$
1,384
$
1,350
Earnings per common share
Basic(1)
$
1.63
$
1.58
Diluted(1)
$
1.63
$
1.57
Supplemental Income Statement
Information
Average common shares outstanding
Basic
847.0
857.1
Diluted
850.4
858.6
Advertising
$
1,029
$
923
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 June 30, 2021, December
31, 2020 and June 30, 2020
(Dollars in Millions)
(Unaudited)
June 30,
December 31,
June 30,
2021
2020
2020
Cash and cash equivalents
$
937
$
888
$
997
Receivables, net
1,443
1,264
1,231
Inventories
1,700
1,673
1,524
Other current assets
572
513
460
Property, plant and equipment, net
3,665
3,716
3,483
Goodwill
3,753
3,824
3,628
Other intangible assets, net
2,787
2,894
2,787
Other assets
1,142
1,148
1,031
Total assets
$
15,999
$
15,920
$
15,141
Total debt
$
7,966
$
7,601
$
7,392
Other current liabilities
4,188
4,137
4,072
Other non-current liabilities
2,983
3,081
2,945
Total liabilities
15,137
14,819
14,409
Total Colgate-Palmolive Company
shareholders’ equity
464
743
268
Noncontrolling interests
398
358
464
Total liabilities and equity
$
15,999
$
15,920
$
15,141
Supplemental Balance Sheet
Information
Debt less cash, cash equivalents and
marketable securities(1)
$
6,959
$
6,676
$
6,370
Working capital % of sales
(3.2
)%
(4.4
)%
(5.5
)%
Note:
(1) Marketable securities of $70, $37 and
$25 as of June 30, 2021, December 31, 2020 and June 30, 2020,
respectively, are included in Other current assets.
Table 4
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Cash Flows
For the Six Months Ended June
30, 2021 and 2020
(Dollars in Millions)
(Unaudited)
2021
2020
Operating Activities
Net income including noncontrolling
interests
$
1,469
$
1,423
Adjustments to reconcile Net income
including noncontrolling interests to Net cash provided by
operations:
Depreciation and amortization
274
266
Restructuring and termination benefits,
net of cash
(15
)
(35
)
Stock-based compensation expense
58
32
Deferred income taxes
(65
)
(147
)
Cash effects of changes in:
Receivables
(188
)
121
Inventories
(39
)
(176
)
Accounts payable and other accruals
(254
)
347
Other non-current assets and
liabilities
(15
)
(37
)
Net cash provided by (used in)
operations
1,225
1,794
Investing Activities
Capital expenditures
(237
)
(159
)
Purchases of marketable securities and
investments
(80
)
(48
)
Proceeds from sale of marketable
securities and investments
46
42
Payment for acquisitions, net of cash
acquired
—
(352
)
Other investing activities
(18
)
—
Net cash provided by (used in) investing
activities
(289
)
(517
)
Financing Activities
Short-term borrowing (repayment) less than
90 days, net
451
(493
)
Proceeds from issuance of debt
25
—
Dividends paid
(796
)
(784
)
Purchases of treasury shares
(713
)
(228
)
Proceeds from exercise of stock
options
151
353
Other financing activities
(2
)
11
Net cash provided by (used in) financing
activities
(884
)
(1,141
)
Effect of exchange rate changes on Cash
and cash equivalents
(3
)
(22
)
Net increase (decrease) in Cash and cash
equivalents
49
114
Cash and cash equivalents at beginning of
the period
888
883
Cash and cash equivalents at end of the
period
$
937
$
997
Supplemental Cash Flow
Information
Free cash flow before dividends (Net cash
provided by operations less Capital expenditures)
Net cash provided by operations
$
1,225
$
1,794
Less: Capital expenditures
(237
)
(159
)
Free cash flow before dividends
$
988
$
1,635
Income taxes paid
$
542
$
349
Table 5
Colgate-Palmolive
Company
Segment Information
For the Three and Six Months
Ended June 30, 2021 and 2020
(Dollars in Millions)
(Unaudited)
Three Months Ended June 30,
Six Months ended June 30,
2021
2020
2021
2020
Net Sales
Oral, Personal and Home Care
North America
$
912
$
949
$
1,835
$
1,878
Latin America
907
805
1,814
1,694
Europe
709
617
1,426
1,292
Asia Pacific
673
625
1,412
1,258
Africa/Eurasia
265
229
537
481
Total Oral, Personal and Home Care
3,466
3,225
7,024
6,603
Pet Nutrition
794
672
1,580
1,391
Total Net Sales
$
4,260
$
3,897
$
8,604
$
7,994
Three Months Ended June 30,
Six Months ended June 30,
2021
2020
2021
2020
Operating Profit
Oral, Personal and Home Care
North America
$
200
$
254
$
402
$
512
Latin America
254
229
526
478
Europe
166
158
346
312
Asia Pacific
200
176
424
337
Africa/Eurasia
55
56
109
112
Total Oral, Personal and Home Care
875
873
1,807
1,751
Pet Nutrition
212
191
427
393
Corporate(1)
(91
)
(118
)
(234
)
(246
)
Total Operating Profit
$
996
$
946
$
2,000
$
1,898
Note:
(1) Corporate operations include costs
related to stock options and restricted stock units, research and
development costs, Corporate overhead costs and gains and losses on
sales of non-core product lines and assets.
Corporate Operating profit (loss) for the
three and six months ended June 30, 2021 included a benefit related
to a value-added tax matter in Brazil of $26. Corporate Operating
profit (loss) for the three and six months ended June 30, 2020
included charges for acquisition-related costs of $0 and $6,
respectively.
Table 6
Colgate-Palmolive
Company
Geographic Sales Analysis
Percentage Changes
For the Three Months Ended
June 30, 2021 vs. 2020
(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
9.5
%
5.0
%
2.5
%
2.5
%
2.5
%
4.5
%
North America
(4.0
)%
(4.5
)%
(8.5
)%
(8.5
)%
4.0
%
0.5
%
Latin America
12.5
%
8.5
%
2.5
%
2.5
%
6.0
%
4.0
%
Europe
15.0
%
5.0
%
7.0
%
7.0
%
(2.0
)%
10.0
%
Asia Pacific
7.5
%
1.0
%
3.5
%
3.5
%
(2.5
)%
6.5
%
Africa/Eurasia
15.5
%
13.0
%
9.5
%
9.5
%
3.5
%
2.5
%
Total CP Products
7.5
%
3.0
%
1.0
%
1.0
%
2.0
%
4.5
%
Hill’s
18.0
%
15.0
%
10.5
%
10.5
%
4.5
%
3.0
%
Emerging Markets(1)
11.5
%
7.0
%
4.0
%
4.0
%
3.0
%
4.5
%
Developed Markets
7.5
%
3.0
%
1.0
%
1.0
%
2.0
%
4.5
%
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 Six Months Ended June
30, 2021 and 2020
(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(1)
7.5
%
5.0
%
1.5
%
1.5
%
3.5
%
2.5
%
North America(1)
(2.5
)%
(3.5
)%
(7.5
)%
(8.0
)%
4.5
%
0.5
%
Latin America
7.0
%
9.0
%
1.5
%
1.5
%
7.5
%
(2.0
)%
Europe
10.5
%
1.5
%
1.5
%
1.5
%
—
%
9.0
%
Asia Pacific
12.0
%
6.0
%
7.0
%
7.0
%
(1.0
)%
6.0
%
Africa/Eurasia
12.0
%
13.0
%
7.0
%
7.0
%
6.0
%
(1.0
)%
Total CP Products(1)
6.5
%
4.0
%
0.5
%
0.5
%
3.5
%
2.5
%
Hill’s
13.5
%
10.5
%
6.5
%
6.5
%
4.0
%
3.0
%
Emerging Markets(2)
10.0
%
9.5
%
5.0
%
5.0
%
4.5
%
0.5
%
Developed Markets(1)
6.0
%
1.5
%
(1.0
)%
(1.0
)%
2.5
%
4.5
%
Notes:
(1) The impact of the previously disclosed
acquisition of the hello oral care business on as reported volume
was 0.5% for North America and 0.0% for Total Company, Total CP
Products and Developed Markets.
(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
June 30, 2021 and 2020
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
Other (Income) Expense, Net
2021
2020
Other (income) expense, net, GAAP
$
(8
)
$
28
Value-added tax matter in Brazil
26
—
Other (income) expense, net, non-GAAP
$
18
$
28
Operating Profit
2021
2020
% Change
Operating profit, GAAP
$
996
$
946
5
%
Value-added tax matter in Brazil
(26
)
—
Operating profit, non-GAAP
$
970
$
946
3
%
Basis Point
Operating Profit Margin
2021
2020
Change
Operating profit margin, GAAP
23.4
%
24.3
%
(90
)
Value-added tax matter in Brazil
(0.6
)%
—
%
Operating profit margin, non-GAAP
22.8
%
24.3
%
(150
)
2021
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
$
953
$
212
$
741
$
703
22.2
%
$
0.83
Value-added tax matter in Brazil
(26
)
(6
)
(20
)
(20
)
—
%
(0.03
)
Non-GAAP
$
927
$
206
$
721
$
683
22.2
%
$
0.80
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 Six Months Ended June
30, 2021 and 2020
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
Gross Profit
2021
2020
Gross profit, GAAP
$
5,193
$
4,834
Acquisition-related costs
—
4
Gross profit, non-GAAP
$
5,193
$
4,838
Basis Point
Gross Profit Margin
2021
2020
Change
Gross profit margin, GAAP
60.4
%
60.5
%
(10
)
Acquisition-related costs
—
%
—
%
Gross profit margin, non-GAAP
60.4
%
60.5
%
(10
)
Other (Income) Expense, Net
2021
2020
Other (income) expense, net, GAAP
$
20
$
68
Value-added tax matter in Brazil
26
—
Acquisition-related costs
—
(2
)
Other (income) expense, net, non-GAAP
$
46
$
66
Operating Profit
2021
2020
% Change
Operating profit, GAAP
$
2,000
$
1,898
5
%
Value-added tax matter in Brazil
(26
)
—
Acquisition-related costs
—
6
Operating profit, non-GAAP
$
1,974
$
1,904
4
%
Basis Point
Operating Profit Margin
2021
2020
Change
Operating profit margin, GAAP
23.2
%
23.7
%
(50
)
Value-added tax matter in Brazil
(0.3
)%
—
%
Acquisition-related costs
—
%
0.1
%
Operating profit margin, non-GAAP
22.9
%
23.8
%
(90
)
Table 9
Continued
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Six Months Ended June
30, 2021 and 2020
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2021
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
$
1,910
$
441
$
1,469
$
1,384
23.1
%
$
1.63
Value-added tax matter in Brazil
(26
)
(6
)
(20
)
(20
)
—
%
(0.03
)
Non-GAAP
$
1,884
$
435
$
1,449
$
1,364
23.1
%
$
1.60
2020
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
$
1,786
$
363
$
1,423
$
1,350
20.3
%
$
1.57
Subsidiary and operating structure
initiatives
—
71
(71
)
(71
)
4.0
%
(0.08
)
Acquisition-related costs
6
2
4
4
—
%
—
Non-GAAP
$
1,792
$
436
$
1,356
$
1,283
24.3
%
$
1.49
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
adjustments on Income before income taxes and Provision for income
taxes.
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