Colgate-Palmolive Company (NYSE:CL):
- Net sales increased 1.0%; Organic sales* increased 7.0% with
growth in every division and all four categories
- GAAP EPS declined 1% to $0.74; Base Business EPS* declined 9%
to $0.74, both of which reflect a negative foreign exchange
translation impact of $0.05
- GAAP Gross profit margin and Base Business Gross profit margin*
both decreased 220 basis points to 57.2%
- Net cash provided by operations was $1,883 million for the
first nine months of 2022
- Colgate’s leadership in toothpaste continued with its global
market share at 39.7% year to date
- Colgate’s leadership in manual toothbrushes continued with its
global market share at 31.6% year to date
- The Company updated its financial guidance for full year
2022
Third Quarter Total Company Results
(GAAP)
($ in millions except per share
amounts)
2022
2021
Change
Net Sales
$4,455
$4,414
+1.0%
EPS (diluted)
$0.74
$0.75
-1%
Third Quarter Total Company Results
(Base Business - Non-GAAP)*
($ in millions except per share
amounts)
2022
2021
Change
Organic Sales Growth
+7.0%
Base Business EPS (diluted)
$0.74
$0.81
-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 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
third quarter 2022. Noel Wallace, Chairman, President and Chief
Executive Officer, commented on the Base Business third quarter
results, “We are very pleased to have delivered our 15th
consecutive quarter of organic sales growth at or above our
targeted range of 3% to 5%. Net sales increased 1.0%, and organic
sales grew 7.0% with growth in every division and in all four of
our categories.
“The consistent, strong, broad-based growth is evidence that our
strategies are working. Our focus on science-led, core and premium
innovation is providing value at all price points, which is
particularly important in today’s difficult macroeconomic
environment. Our investments in building and scaling our digital
and other capabilities across the enterprise are also paying off
with our revenue growth management initiatives helping to drive
double-digit pricing worldwide.
“As expected, significant increases in raw and packaging
material and logistics costs continued during the quarter and the
negative impact from currency accelerated. Beyond revenue growth
management and the significant pricing actions we are taking, we
are also continuing our efforts around funding-the-growth and other
productivity initiatives to help offset these headwinds.
“Looking ahead, despite the challenging macroeconomic
environment, we intend to continue to execute against our strategy
in order to drive value for all stakeholders.”
Full Year 2022 Guidance
Based on current spot rates:
- The Company now expects net sales growth to be in the middle of
the 1% to 4% range, including an approximately 5% negative impact
from foreign exchange and a modest benefit from the Red Collar
acquisition.
- The Company raised its organic sales growth guidance for the
year from 5% to 7% to 6% to 7%.
- On a GAAP basis, the Company still expects a decline in gross
profit margin and double-digit earnings-per-share growth, and now
expects advertising investment to be roughly flat.
- On a non-GAAP (Base Business) basis, the Company still expects
a decline in gross profit margin and now expects roughly flat
advertising investment and a 7% to 8% earnings-per-share decline
reflecting the incremental negative impact from foreign exchange
due to the move in exchange rates since our second quarter earnings
release.
Divisional Performance
The following are comments about divisional performance for
third quarter 2022 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.
Third Quarter Sales Growth By
Division
(% change 3Q 2022 vs. 3Q 2021)
Net Sales
Organic Sales*
As Reported Volume
Organic Volume
Pricing
FX
North America
+3.0%
+3.5%
-5.5%
-5.5%
+9.0%
-0.5%
Latin America
+7.0%
+11.5%
-8.5%
-8.5%
+20.0%
-4.5%
Europe
-12.0%
+2.5%
-2.5%
-2.5%
+5.0%
-14.5%
Asia Pacific
-3.0%
+5.0%
-1.0%
-1.0%
+6.0%
-8.0%
Africa/Eurasia
+11.0%
+20.0%
-6.5%
-6.5%
+26.5%
-9.0%
Hill's
+3.0%
+7.5%
-3.5%
-3.5%
+11.0%
-4.5%
Total Company
+1.0%
+7.0%
-4.5%
-4.5%
+11.5%
-6.0%
*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.
Third Quarter Operating Profit By
Division
($ in millions)
3Q 2022
% Change vs 3Q 2021
% to Net Sales
Change in basis points vs 3Q
2021
% to Net Sales
North America
$198
8%
20.7%
+100
Latin America
$289
17%
29.0%
+240
Europe
$127
-29%
20.1%
-470
Asia Pacific
$185
-14%
26.1%
-330
Africa/Eurasia
$66
50%
23.0%
+590
Hill's
$201
-14%
23.1%
-450
Total Company, As Reported
$947
-2%
21.3%
-60
Total Company, Base Business*
$920
-5%
20.7%
-120
*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 (22% of Company
Sales)
- Organic sales growth was broad based across oral care, personal
care and home care.
- In the United States, Colgate's share of the toothpaste market
is 34.6% year to date and its share of the manual toothbrush market
is 42.3% year to date.
- The increase in Operating profit as a percentage of Net sales
was primarily due to higher pricing, cost savings from the
Company’s funding-the-growth initiatives and lower overhead
expenses, partially offset by significantly higher raw and
packaging material costs.
Latin America (22% of Company
Sales)
- Organic sales growth was led by Brazil, Mexico, Argentina and
Colombia.
- The increase in Operating profit as a percentage of Net sales
was primarily due to higher pricing, cost savings from the
Company’s funding-the-growth initiatives, a value-added tax refund
and lower overhead expenses, partially offset by significantly
higher raw and packaging material costs.
Europe (14% of Company
Sales)
- Organic sales growth was led by the United Kingdom, Poland and
France, partially offset by organic sales declines in the Filorga
business.
- The decrease in Operating profit as a percentage of Net sales
was primarily due to significantly higher raw and packaging
material costs and higher logistics costs, partially offset by cost
savings from the Company’s funding-the-growth initiatives, higher
pricing, overhead efficiencies and decreased advertising
investment.
Asia Pacific (16% of Company
Sales)
- Organic sales growth was led by the Greater China region,
Australia and the Philippines.
- 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 and higher pricing.
Africa/Eurasia (6% of Company
Sales)
- Organic sales growth was led by Turkiye and South Africa.
- The increase in Operating profit as a percentage of Net sales
was primarily due to higher pricing, cost savings from the
Company’s funding-the-growth initiatives, lower overhead expenses
and decreased advertising investment, partially offset by
significantly higher raw and packaging material costs.
Hill's Pet Nutrition (20% 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 and higher logistics costs, partially offset by
higher pricing, decreased advertising investment, cost savings from
the Company’s funding-the-growth initiatives and overhead
efficiencies.
Prepared Materials and Webcast
Information
At approximately 7:00 a.m. ET today, Colgate will post its
prepared materials (in PDF format) regarding third quarter 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 third 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, 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 more than 1.4
billion children 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
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 COVID-19, the impact of the war in Ukraine,
cost-reduction plans, including the 2022 Global Productivity
Initiative, tax rates, interest rates, new product introductions
and 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, 2021 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 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 relating to the
2022 Global Productivity Initiative, a gain on the sale of land in
Asia Pacific, acquisition-related costs, a loss on the early
extinguishment of debt and a benefit related to a value-added tax
matter in Brazil.
- 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 nine months ended September 30, 2022 versus 2021
included with this release for a comparison of Organic sales growth
to Net sales growth in accordance with GAAP.
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, 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 nine months ended
September 30, 2022 and 2021 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 nine months ended September 30,
2022 and 2021 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 third quarter
results.)
Table 1
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Income
For the Three Months Ended
September 30, 2022 and 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2022
2021
Net sales
$
4,455
$
4,414
Cost of sales
1,907
1,791
Gross profit
2,548
2,623
Gross profit margin
57.2
%
59.4
%
Selling, general and administrative
expenses
1,634
1,636
Other (income) expense, net
(33
)
20
Operating profit
947
967
Operating profit margin
21.3
%
21.9
%
Non-service related postretirement
costs
15
16
Interest (income) expense, net
40
98
Income before income taxes
892
853
Provision for income taxes
210
172
Effective tax rate
23.5
%
20.2
%
Net income including noncontrolling
interests
682
681
Less: Net income attributable to
noncontrolling interests
64
47
Net income attributable to
Colgate-Palmolive Company
$
618
$
634
Earnings per common share
Basic
$
0.74
$
0.75
Diluted
$
0.74
$
0.75
Supplemental Income Statement
Information
Average common shares outstanding
Basic
835.7
843.6
Diluted
838.5
846.4
Advertising
$
486
$
503
Table 2
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Income
For the Nine Months Ended
September 30, 2022 and 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2022
2021
Net sales
$
13,338
$
13,018
Cost of sales
5,664
5,202
Gross profit
7,674
7,816
Gross profit margin
57.5
%
60.0
%
Selling, general and administrative
expenses
4,932
4,809
Other (income) expense, net
51
40
Operating profit
2,691
2,967
Operating profit margin
20.2
%
22.8
%
Non-service related postretirement
costs
65
52
Interest (income) expense, net
98
152
Income before income taxes
2,528
2,763
Provision for income taxes
604
613
Effective tax rate
23.9
%
22.2
%
Net income including noncontrolling
interests
1,924
2,150
Less: Net income attributable to
noncontrolling interests
144
132
Net income attributable to
Colgate-Palmolive Company
$
1,780
$
2,018
Earnings per common share
Basic(1)
$
2.12
$
2.39
Diluted(1)
$
2.12
$
2.38
Supplemental Income Statement
Information
Average common shares outstanding
Basic
837.7
845.9
Diluted
840.4
849.0
Advertising
$
1,493
$
1,532
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 September 30, 2022,
December 31, 2021 and September 30, 2021
(Dollars in Millions)
(Unaudited)
September 30,
December 31,
September 30,
2022
2021
2021
Cash and cash equivalents
$
938
$
832
$
958
Receivables, net
1,425
1,297
1,424
Inventories
2,073
1,692
1,670
Other current assets
842
576
618
Property, plant and equipment, net
4,123
3,730
3,633
Goodwill
3,538
3,284
3,685
Other intangible assets, net
2,219
2,462
2,719
Other assets
1,130
1,167
1,173
Total assets
$
16,288
$
15,040
$
15,880
Total debt
$
8,248
$
7,245
$
7,696
Other current liabilities
4,463
4,000
4,267
Other non-current liabilities
2,524
2,824
2,890
Total liabilities
15,235
14,069
14,853
Total Colgate-Palmolive Company
shareholders’ equity
622
609
591
Noncontrolling interests
431
362
436
Total liabilities and equity
$
16,288
$
15,040
$
15,880
Supplemental Balance Sheet
Information
Debt less cash, cash equivalents and
marketable securities(1)
$
7,102
$
6,379
$
6,638
Working capital % of sales
(1.9
)%
(2.7
)%
(3.8
)%
Note:
(1) Marketable securities of $208, $34 and
$100 as of September 30, 2022, December 31, 2021 and September 30,
2021, respectively, are included in Other current assets.
Table 4
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Cash Flows
For the Nine Months Ended
September 30, 2022 and 2021
(Dollars in Millions)
(Unaudited)
2022
2021
Operating Activities
Net income including noncontrolling
interests
$
1,924
$
2,150
Adjustments to reconcile Net income
including noncontrolling interests to Net cash provided by
operations:
Depreciation and amortization
410
414
Restructuring and termination benefits,
net of cash
51
(19
)
Stock-based compensation expense
105
107
Gain on sale of land
(47
)
—
Forward starting swap settlement
82
—
Loss on early extinguishment of debt
—
75
Deferred income taxes
(13
)
(146
)
Cash effects of changes in:
Receivables
(171
)
(198
)
Inventories
(422
)
(37
)
Accounts payable and other accruals
9
(107
)
Other non-current assets and
liabilities
(45
)
(20
)
Net cash provided by (used in)
operations
1,883
2,219
Investing Activities
Capital expenditures
(475
)
(374
)
Purchases of marketable securities and
investments
(239
)
(118
)
Proceeds from sale of marketable
securities and investments
55
55
Payment for acquisition, net of cash
acquired
(817
)
—
Proceeds from sale of land
47
—
Other investing activities
1
(25
)
Net cash provided by (used in) investing
activities
(1,428
)
(462
)
Financing Activities
Short-term borrowing (repayment) less than
90 days, net
(56
)
205
Principal payments on debt
(2
)
(118
)
Proceeds from issuance of debt
1,513
119
Dividends paid
(1,206
)
(1,183
)
Purchases of treasury shares
(895
)
(964
)
Proceeds from exercise of stock
options
398
282
Other
(38
)
(9
)
Net cash provided by (used in) financing
activities
(286
)
(1,668
)
Effect of exchange rate changes on Cash
and cash equivalents
(63
)
(19
)
Net increase (decrease) in Cash and cash
equivalents
106
70
Cash and cash equivalents at beginning of
the period
832
888
Cash and cash equivalents at end of the
period
$
938
$
958
Supplemental Cash Flow
Information
Free cash flow before dividends (Net cash
provided by operations less Capital expenditures)
Net cash provided by operations
$
1,883
$
2,219
Less: Capital expenditures
(475
)
(374
)
Free cash flow before dividends
$
1,408
$
1,845
Income taxes paid
$
690
$
742
Table 5
Colgate-Palmolive
Company
Segment Information
For the Three and Nine Months
Ended September 30, 2022 and 2021
(Dollars in Millions)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Net Sales
Oral, Personal and Home Care
North America
$
958
$
931
$
2,850
$
2,765
Latin America
997
931
2,970
2,745
Europe
632
718
1,925
2,144
Asia Pacific
709
731
2,131
2,142
Africa/Eurasia
287
258
809
796
Total Oral, Personal and Home Care
3,583
3,569
10,685
10,592
Pet Nutrition
872
845
2,653
2,426
Total Net Sales
$
4,455
$
4,414
$
13,338
$
13,018
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Operating Profit
Oral, Personal and Home Care
North America
$
198
$
183
$
557
$
585
Latin America
289
248
818
774
Europe
127
178
410
524
Asia Pacific
185
215
556
639
Africa/Eurasia
66
44
160
153
Total Oral, Personal and Home Care
865
868
2,501
2,675
Pet Nutrition
201
233
617
661
Corporate(1)
(119
)
(134
)
(427
)
(369
)
Total Operating Profit
$
947
$
967
$
2,691
$
2,967
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 September 30, 2022 included charges resulting
from the 2022 Global Productivity Initiative of $3, a gain on the
sale of land in Asia Pacific of $47 and acquisition-related costs
of $17.
Corporate Operating profit (loss) for the
nine months ended September 30, 2022 included charges resulting
from the 2022 Global Productivity Initiative of $79, a gain on the
sale of land in Asia Pacific of $47 and acquisition-related costs
of $17.
Corporate Operating profit (loss) for the
nine months ended September 30, 2021 included a benefit related to
a value-added tax matter in Brazil of $26.
Table 6
Colgate-Palmolive
Company
Geographic Sales Analysis
Percentage Changes
For the Three Months Ended
September 30, 2022 vs. 2021
(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
1.0
%
7.0
%
(4.5
)%
(4.5
)%
11.5
%
(6.0
)%
North America
3.0
%
3.5
%
(5.5
)%
(5.5
)%
9.0
%
(0.5
)%
Latin America
7.0
%
11.5
%
(8.5
)%
(8.5
)%
20.0
%
(4.5
)%
Europe
(12.0
)%
2.5
%
(2.5
)%
(2.5
)%
5.0
%
(14.5
)%
Asia Pacific
(3.0
)%
5.0
%
(1.0
)%
(1.0
)%
6.0
%
(8.0
)%
Africa/Eurasia
11.0
%
20.0
%
(6.5
)%
(6.5
)%
26.5
%
(9.0
)%
Total CP Products
0.5
%
7.0
%
(5.0
)%
(5.0
)%
12.0
%
(6.5
)%
Hill’s
3.0
%
7.5
%
(3.5
)%
(3.5
)%
11.0
%
(4.5
)%
Emerging Markets(1)
3.0
%
9.5
%
(6.5
)%
(6.5
)%
16.0
%
(6.5
)%
Developed Markets
(0.5
)%
5.0
%
(3.0
)%
(3.0
)%
8.0
%
(5.5
)%
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 Nine Months Ended
September 30, 2022 vs. 2021
(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
2.5
%
6.5
%
(2.0
)%
(2.0
)%
8.5
%
(4.0
)%
North America
3.0
%
3.5
%
(0.5
)%
(0.5
)%
4.0
%
(0.5
)%
Latin America
8.0
%
10.0
%
(4.0
)%
(4.0
)%
14.0
%
(2.0
)%
Europe
(10.5
)%
—
%
(3.5
)%
(3.5
)%
3.5
%
(10.5
)%
Asia Pacific
(0.5
)%
5.0
%
(0.5
)%
(0.5
)%
5.5
%
(5.5
)%
Africa/Eurasia
1.5
%
10.5
%
(10.0
)%
(10.0
)%
20.5
%
(9.0
)%
Total CP Products
1.0
%
5.0
%
(2.5
)%
(2.5
)%
7.5
%
(4.0
)%
Hill’s
9.5
%
13.0
%
2.0
%
2.0
%
11.0
%
(3.5
)%
Emerging Markets(1)
3.5
%
7.5
%
(4.0
)%
(4.0
)%
11.5
%
(4.0
)%
Developed Markets
1.5
%
5.5
%
—
%
—
%
5.5
%
(4.0
)%
Note:
(1) 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
September 30, 2022 and 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
Selling, General and Administrative
Expenses
2022
2021
Selling, general and administrative
expenses, GAAP
$
1,634
$
1,636
2022 Global Productivity Initiative
(1
)
—
Selling, general and administrative
expenses, non-GAAP
$
1,633
$
1,636
Other (Income) Expense, Net
2022
2021
Other (income) expense, net, GAAP
$
(33
)
$
20
2022 Global Productivity Initiative
(2
)
—
Gain on the sale of land in Asia
Pacific
47
—
Acquisition-related costs
(17
)
—
Other (income) expense, net, non-GAAP
$
(5
)
$
20
Operating Profit
2022
2021
% Change
Operating profit, GAAP
$
947
$
967
(2
)%
2022 Global Productivity Initiative
3
—
Gain on the sale of land in Asia
Pacific
(47
)
—
Acquisition-related costs
17
—
Operating profit, non-GAAP
$
920
$
967
(5
)%
Basis Point
Operating Profit Margin
2022
2021
Change
Operating profit margin, GAAP
21.3
%
21.9
%
(60
)
2022 Global Productivity Initiative
0.1
%
—
%
Gain on the sale of land in Asia
Pacific
(1.1
)%
—
%
Acquisition-related costs
0.4
%
—
%
Operating profit margin, non-GAAP
20.7
%
21.9
%
(120
)
Interest (Income) Expense, Net
2022
2021
Interest (income) expense, net, GAAP
$
40
$
98
Loss on early extinguishment of debt
—
(75
)
Interest (income) expense, net,
non-GAAP
$
40
$
23
Non-Service Related Postretirement
Costs
2022
2021
Non-service related postretirement costs,
GAAP
$
15
$
16
2022 Global Productivity Initiative
1
—
Non-service related postretirement costs,
non-GAAP
$
16
$
16
Table 8
Continued
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Three Months Ended
September 30, 2022 and 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
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
$
892
$
210
$
682
$
64
$
618
23.5
%
$
0.74
2022 Global Productivity Initiative
2
—
2
—
2
(0.1
)%
—
Gain on the sale of land in Asia
Pacific
(47
)
(11
)
(36
)
(21
)
(15
)
0.1
%
(0.02
)
Acquisition-related costs
17
2
15
—
15
(0.2
)%
0.02
Non-GAAP
$
864
$
201
$
663
$
43
$
620
23.3
%
$
0.74
2021
Income Before
IncomeTaxes
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
$
853
$
172
$
681
$
47
$
634
20.2
%
$
0.75
Loss on early extinguishment of debt
75
20
55
—
55
0.5
%
0.06
Non-GAAP
$
928
$
192
$
736
$
47
$
689
20.7
%
$
0.81
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 Nine Months Ended
September 30, 2022 and 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
Selling, General and Administrative
Expenses
2022
2021
Selling, general and administrative
expenses, GAAP
$
4,932
$
4,809
2022 Global Productivity Initiative
(4
)
—
Selling, general and administrative
expenses, non-GAAP
$
4,928
$
4,809
Basis Point
Selling, General and Administrative
Expenses as a Percentage of Net Sales
2022
2021
Change
Selling, general and administrative
expenses as a percentage of Net sales, GAAP
37.0
%
36.9
%
10
2022 Global Productivity Initiative
(0.1
)%
—
%
Selling, general and administrative
expenses as a percentage of Net sales, non-GAAP
36.9
%
36.9
%
—
Other (Income) Expense, Net
2022
2021
Other (income) expense, net, GAAP
$
51
$
40
2022 Global Productivity Initiative
(75
)
—
Gain on the sale of land in Asia
Pacific
47
—
Acquisition-related costs
(17
)
—
Value-added tax matter in Brazil
—
26
Other (income) expense, net, non-GAAP
$
6
$
66
Operating Profit
2022
2021
% Change
Operating profit, GAAP
$
2,691
$
2,967
(9
)%
2022 Global Productivity Initiative
79
—
Gain on the sale of land in Asia
Pacific
(47
)
—
Acquisition-related costs
17
—
Value-added tax matter in Brazil
—
(26
)
Operating profit, non-GAAP
$
2,740
$
2,941
(7
)%
Basis Point
Operating Profit Margin
2022
2021
Change
Operating profit margin, GAAP
20.2
%
22.8
%
(260
)
2022 Global Productivity Initiative
0.6
%
—
%
Gain on the sale of land in Asia
Pacific
(0.4
)%
—
%
Acquisition-related costs
0.1
%
—
%
Value-added tax matter in Brazil
—
%
(0.2
)%
Operating profit margin, non-GAAP
20.5
%
22.6
%
(210
)
Interest (Income) Expense, Net
2022
2021
Interest (income) expense, net, GAAP
$
98
$
152
Loss on early extinguishment of debt
—
(75
)
Interest (income) expense, net,
non-GAAP
$
98
$
77
Non-Service Related Postretirement
Costs
2022
2021
Non-service related postretirement costs,
GAAP
$
65
$
52
2022 Global Productivity Initiative
(13
)
—
Non-service related postretirement costs,
non-GAAP
$
52
$
52
Table 9
Continued
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Nine Months Ended
September 30, 2022 and 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
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
$
2,528
$
604
$
1,924
$
144
$
1,780
23.9
%
$
2.12
2022 Global Productivity Initiative
92
19
73
1
72
(0.1
)%
0.08
Gain on the sale of land in Asia
Pacific
(47
)
(11
)
(36
)
(21
)
(15
)
—
%
(0.02
)
Acquisition-related costs
17
2
15
—
15
(0.1
)%
0.02
Non-GAAP
$
2,590
$
614
$
1,976
$
124
$
1,852
23.7
%
$
2.20
2021
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
$
2,763
$
613
$
2,150
$
132
$
2,018
22.2
%
$
2.38
Loss on early extinguishment of debt
75
20
55
—
55
0.1
%
0.06
Value-added tax matter in Brazil
(26
)
(6
)
(20
)
—
(20
)
—
%
(0.02
)
Non-GAAP
$
2,812
$
627
$
2,185
$
132
$
2,053
22.3
%
$
2.42
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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