4Q 2022 Net sales increased 5.0%, Organic sales
increased 8.5%
Full Year 2022 Net sales increased 3.0%,
Organic sales increased 7.0%
Colgate-Palmolive Company (NYSE:CL) today reported results for
fourth quarter and full year 2022. Noel Wallace, Chairman,
President and Chief Executive Officer, commented, “We are very
pleased to have finished 2022 with a continuation of our strong
growth momentum, as 2022 was our fourth consecutive year delivering
organic sales growth at or above our 3% to 5% long-term targeted
range. Net sales increased 5.0% in the fourth quarter, and organic
sales grew 8.5% with growth in every division and in all four of
our categories, despite challenging macroeconomic conditions
worldwide.
“By delivering on our revenue growth management and productivity
initiatives, we are continuing to fund increased investment behind
innovation, advertising and digital transformation, which is
helping to drive this broad-based growth and deliver improved
market share performance.
“Looking ahead, we have a proven strategy, a focused portfolio
of leading brands in growing, everyday usage categories and product
offerings across price points. We are also strengthening and
scaling our digital, data analytics, innovation and other
capabilities across the company. All this adds to our confidence
that despite uncertain macroeconomic conditions worldwide, we are
executing against the right strategy and are well-positioned to
deliver sustainable, profitable growth in 2023 and beyond.”
Full Year
- Net sales increased 3.0%, Organic sales* increased 7.0%
- On a GAAP basis, EPS declined 16% to $2.13, driven by goodwill
and intangible assets impairment charges in the fourth quarter
related to the Filorga skin health business
- On a Base Business basis, EPS* declined 7% to $2.97, in line
with the Company's full year guidance
Full Year Total Company Results
(GAAP)
($ in millions except per share
amounts)
2022
2021
Change
Net Sales
$17,967
$17,421
+3.0%
EPS (diluted)
$2.13
$2.55
-16%
Full Year Total Company Results (Base
Business - Non-GAAP)*
($ in millions except per share
amounts)
2022
2021
Change
Organic Sales Growth
+7.0%
Base Business EPS (diluted)
$2.97
$3.21
-7%
*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 increased 5.0%, Organic sales* increased 8.5%
- On a GAAP basis, EPS declined 94% to $0.01, driven by goodwill
and intangible assets impairment charges related to the Filorga
skin health business
- On a Base Business basis, EPS* declined 3% to $0.77
- GAAP Gross profit margin and Base Business Gross profit margin*
both decreased 250 basis points to 55.6%, including a negative 90
basis point impact from private label sales resulting from the
previously disclosed acquisitions of pet food businesses
- Net cash provided by operations was $2,556 year to date
- Colgate’s leadership in toothpaste continued with its global
market share at 39.8% year to date
- Colgate’s leadership in manual toothbrushes continued with its
global market share at 31.7% year to date
Fourth Quarter Total Company Results
(GAAP)
($ in millions except per share
amounts)
2022
2021
Change
Net Sales
$4,629
$4,403
+5.0%
EPS (diluted)
$0.01
$0.18
-94%
Fourth Quarter Total Company Results
(Base Business - Non-GAAP)*
($ in millions except per share
amounts)
2022
2021
Change
Organic Sales Growth
+8.5%
Base Business EPS (diluted)
$0.77
$0.79
-3%
*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.
Goodwill and Intangible Assets
Impairment
During the fourth quarter, the Company took a non-cash,
after-tax charge of $620 million to adjust the carrying values of
goodwill and intangible assets related to the Filorga skin health
business. The impairment was due to the continued impact of the
COVID-19 pandemic on the Filorga business, particularly in China,
as a result of government restrictions and reduced consumer
mobility, which negatively impacted consumption in the duty-free,
travel retail and pharmacy channels, and the impact of
significantly higher interest rates. The Company continues to
believe in the strength of the Filorga brand and is confident about
its long-term growth opportunities.
Full Year 2023 Guidance
Based on current spot rates:
- The Company expects net sales growth to be 2% to 5% including
the benefit from our acquisitions of pet food businesses and a
low-single-digit negative impact from foreign exchange.
- The Company expects organic sales growth to be towards the high
end of 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 low
to mid-single-digit earnings-per-share growth.
Divisional Performance
The following are comments about divisional performance for
fourth 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.
Fourth Quarter Sales Growth By
Division
(% change 4Q 2022 vs. 4Q 2021)
Net
Sales
Organic
Sales*
As Reported
Volume**
Organic
Volume
Pricing
FX
North America
+4.0%
+4.5%
-6.0%
-6.0%
+10.5%
-0.5%
Latin America
+10.0%
+12.0%
-7.0%
-7.0%
+19.0%
-2.0%
Europe
-10.5%
+1.0%
-6.0%
-6.0%
+7.0%
-11.5%
Asia Pacific
-4.0%
+6.0%
-1.0%
-1.0%
+7.0%
-10.0%
Africa/Eurasia
+9.0%
+16.5%
-7.0%
-7.0%
+23.5%
-7.5%
Hill's
+20.0%
+14.0%
+10.0%
+0.5%
+13.5%
-3.5%
Total Company
+5.0%
+8.5%
-2.5%
-4.0%
+12.5%
-5.0%
*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.
**The impact of the previously disclosed
acquisitions of pet food businesses on as reported volume was 9.5%
and 1.5% for Hill's and Total Company, respectively.
Fourth Quarter Operating Profit By
Division
($ in millions)
4Q 2022
% Change vs
4Q 2021
% to Net
Sales
Change in basis
points vs 4Q 2021
% to Net Sales
North America
$204
21%
21.1%
+300
Latin America
$290
22%
28.7%
+270
Europe
$104
-34%
16.7%
-590
Asia Pacific
$181
-11%
26.0%
-220
Africa/Eurasia
$69
38%
25.3%
+520
Hill's
$233
-3%
22.0%
-520
Total Company, As Reported
$202
-45%
4.4%
-390
Total Company, Base Business*
$941
1%
20.3%
-100
*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)
- 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 34.5% year to date and its share of the manual toothbrush market
is 42.2% 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 logistics and
overhead expenses, partially offset by significantly higher raw and
packaging material costs and increased advertising investment.
Latin America (22% of Company
Sales)
- Organic sales growth was led by Mexico, Argentina, 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 overhead expenses,
partially offset by significantly higher raw and packaging material
costs and increased advertising investment.
Europe (13% of Company
Sales)
- Organic sales growth was led by Germany, Poland, France and the
United Kingdom, 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, higher overhead expenses, primarily due to higher
logistics costs, and increased advertising investment, partially
offset by cost savings from the Company’s funding-the-growth
initiatives and higher pricing.
Asia Pacific (15% 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, partially offset by cost savings from the Company's
funding-the-growth initiatives, higher pricing, decreased
advertising investment and lower overhead expenses despite
increases in logistics costs.
Africa/Eurasia (6% of Company
Sales)
- Organic sales growth was led by Turkiye, Nigeria 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 and decreased advertising
investment, partially offset by significantly higher raw and
packaging material costs and higher overhead expenses.
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 and unfavorable mix due to private label sales
resulting from the previously disclosed acquisitions of pet food
businesses, partially offset by higher pricing, lower overhead
expenses, decreased advertising investment 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 2022 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 2022 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 wellbeing, 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 1.4 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
The Company's annual meeting of stockholders is currently
scheduled for Friday, May 12, 2023.
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,
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 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 relating to the
2022 Global Productivity Initiative, goodwill and intangible assets
impairment charges, 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 twelve months ended December 31, 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, 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 twelve months
ended December 31, 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 twelve months ended December 31,
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 fourth quarter and
full year results.)
Table 1
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Income
For the Three Months Ended
December 31, 2022 and 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2022
2021
Net sales
$
4,629
$
4,403
Cost of sales
2,055
1,844
Gross profit
2,574
2,559
Gross profit margin
55.6
%
58.1
%
Selling, general and administrative
expenses
1,633
1,598
Other (income) expense, net
18
25
Goodwill and intangible assets impairment
charges
721
571
Operating profit
202
365
Operating profit margin
4.4
%
8.3
%
Non-service related postretirement
costs
15
18
Interest (income) expense, net
55
23
Income before income taxes
132
324
Provision for income taxes
89
136
Effective tax rate
67.4
%
42.0
%
Net income including noncontrolling
interests
43
188
Less: Net income attributable to
noncontrolling interests
38
40
Net income attributable to
Colgate-Palmolive Company
$
5
$
148
Earnings per common share
Basic
$
0.01
$
0.18
Diluted
$
0.01
$
0.18
Supplemental Income Statement
Information
Average common shares outstanding
Basic
832.6
842.1
Diluted
834.4
845.0
Advertising
$
504
$
489
Table 2
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Income
For the Twelve Months Ended
December 31, 2022 and 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2022
2021
Net sales
$
17,967
$
17,421
Cost of sales
7,719
7,046
Gross profit
10,248
10,375
Gross profit margin
57.0
%
59.6
%
Selling, general and administrative
expenses
6,565
6,407
Other (income) expense, net
69
65
Goodwill and intangible assets impairment
charges
721
571
Operating profit
2,893
3,332
Operating profit margin
16.1
%
19.1
%
Non-service related postretirement
costs
80
70
Interest (income) expense, net
153
175
Income before income taxes
2,660
3,087
Provision for income taxes
693
749
Effective tax rate
26.1
%
24.3
%
Net income including noncontrolling
interests
1,967
2,338
Less: Net income attributable to
noncontrolling interests
182
172
Net income attributable to
Colgate-Palmolive Company
$
1,785
$
2,166
Earnings per common share
Basic(1)
$
2.13
$
2.56
Diluted(1)
$
2.13
$
2.55
Supplemental Income Statement
Information
Average common shares outstanding
Basic
836.4
845.0
Diluted
838.8
848.3
Advertising
$
1,997
$
2,021
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, 2022 and
December 31, 2021
(Dollars in Millions)
(Unaudited)
2022
2021
Cash and cash equivalents
$
775
$
832
Receivables, net
1,504
1,297
Inventories
2,074
1,692
Other current assets
760
576
Property, plant and equipment, net
4,307
3,730
Goodwill
3,352
3,284
Other intangible assets, net
1,920
2,462
Other assets
1,039
1,167
Total assets
$
15,731
$
15,040
Total debt
8,766
7,245
Other current liabilities
3,979
4,000
Other non-current liabilities
2,180
2,824
Total liabilities
14,925
14,069
Total Colgate-Palmolive Company
shareholders’ equity
401
609
Noncontrolling interests
405
362
Total liabilities and equity
$
15,731
$
15,040
Supplemental Balance Sheet
Information
Debt less cash, cash equivalents and
marketable securities(1)
$
7,816
$
6,379
Working capital % of sales
1.0
%
(2.7
)%
Note:
(1) Marketable securities of $175 and $34
as of December 31, 2022 and 2021, 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, 2022 and 2021
(Dollars in Millions)
(Unaudited)
2022
2021
Operating Activities
Net income including noncontrolling
interests
$
1,967
$
2,338
Adjustments to reconcile Net income
including noncontrolling interests to Net cash provided by
operations:
Depreciation and amortization
545
556
Restructuring and termination benefits,
net of cash
49
(21
)
Stock-based compensation expense
125
135
Gain on the sale of land
(47
)
—
Goodwill and intangible assets impairment
charges
721
571
Loss on early extinguishment of debt
—
75
Deferred income taxes
(78
)
(132
)
Cash effects of changes in:
Receivables
(227
)
(84
)
Inventories
(333
)
(72
)
Accounts payable and other accruals
(115
)
14
Other non-current assets and
liabilities
(51
)
(55
)
Net cash provided by operations
2,556
3,325
Investing Activities
Capital expenditures
(696
)
(567
)
Purchases of marketable securities and
investments
(470
)
(141
)
Proceeds from sale of marketable
securities and investments
322
141
Payment for acquisitions, net of cash
acquired
(809
)
—
Proceeds from the sale of land
47
—
Other investing activities
5
(25
)
Net cash used in investing activities
(1,601
)
(592
)
Financing Activities
Short-term borrowing (repayment) less than
90 days, net
540
(171
)
Principal payments on debt
(406
)
(703
)
Proceeds from issuance of debt
1,513
699
Dividends paid
(1,691
)
(1,679
)
Purchases of treasury shares
(1,308
)
(1,320
)
Proceeds from exercise of stock
options
418
424
Other financing activities
(18
)
(24
)
Net cash used in financing activities
(952
)
(2,774
)
Effect of exchange rate changes on Cash
and cash equivalents
(60
)
(15
)
Net increase (decrease) in Cash and cash
equivalents
(57
)
(56
)
Cash and cash equivalents at beginning of
the period
832
888
Cash and cash equivalents at end of the
period
$
775
$
832
Supplemental Cash Flow
Information
Free cash flow before dividends (Net cash
provided by operations less Capital expenditures)
Net cash provided by operations
2,556
3,325
Less: Capital expenditures
(696
)
(567
)
Free cash flow before dividends
$
1,860
$
2,758
Income taxes paid
$
945
$
890
Table 5
Colgate-Palmolive
Company
Segment Information
For the Three and Twelve
Months Ended December 31, 2022 and 2021
(Dollars in Millions)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2022
2021
2022
2021
Net Sales
Oral, Personal and Home Care
North America
$
966
$
930
$
3,816
$
3,694
Latin America
1,011
917
3,982
3,663
Europe
623
698
2,548
2,841
Asia Pacific
696
724
2,826
2,867
Africa/Eurasia
273
249
1,082
1,045
Total Oral, Personal and Home Care
3,569
3,518
14,254
14,110
Pet Nutrition
1,060
885
3,713
3,311
Total Net Sales
$
4,629
$
4,403
$
17,967
$
17,421
Three Months Ended December
31,
Twelve Months Ended December
31,
2022
2021
2022
2021
Operating Profit
Oral, Personal and Home Care
North America
$
204
$
168
$
761
$
754
Latin America
290
238
1,108
1,012
Europe
104
158
514
682
Asia Pacific
181
204
737
844
Africa/Eurasia
69
50
228
203
Total Oral, Personal and Home Care
848
818
3,348
3,495
Pet Nutrition
233
241
850
901
Corporate(1)
(879
)
(694
)
(1,305
)
(1,064
)
Total Operating Profit
$
202
$
365
$
2,893
$
3,332
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 months ended December 31, 2022 included charges resulting
from the goodwill and intangible assets impairment of $721, 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 charges resulting
from the goodwill and intangible assets impairment of $721, 2022
Global Productivity Initiative of $95, a gain on the sale of land
in Asia Pacific of $47, and acquisition-related costs of $19.
Corporate Operating profit (loss) for the
three months ended December 31, 2021 included goodwill and
intangible assets impairment charges of $571.
Corporate Operating profit (loss) for the
twelve months ended December 31, 2021 included goodwill and
intangible assets impairment charges of $571 and a benefit from a
value-added tax matter in Brazil of $26.
Table 6
Colgate-Palmolive
Company
Geographic Sales Analysis
Percentage Changes
For the Three Months Ended
December 31, 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(1)
Volume
Incentives
Exchange
Total Company
5.0
%
8.5
%
(2.5
)%
(4.0
)%
12.5
%
(5.0
)%
North America
4.0
%
4.5
%
(6.0
)%
(6.0
)%
10.5
%
(0.5
)%
Latin America
10.0
%
12.0
%
(7.0
)%
(7.0
)%
19.0
%
(2.0
)%
Europe
(10.5
)%
1.0
%
(6.0
)%
(6.0
)%
7.0
%
(11.5
)%
Asia Pacific
(4.0
)%
6.0
%
(1.0
)%
(1.0
)%
7.0
%
(10.0
)%
Africa/Eurasia
9.0
%
16.5
%
(7.0
)%
(7.0
)%
23.5
%
(7.5
)%
Total CP Products
1.5
%
7.0
%
(5.5
)%
(5.5
)%
12.5
%
(5.5
)%
Hill’s
20.0
%
14.0
%
10.0
%
0.5
%
13.5
%
(3.5
)%
Emerging Markets(2)
4.5
%
9.5
%
(5.5
)%
(5.5
)%
15.0
%
(5.0
)%
Developed Markets
6.0
%
7.0
%
—
%
(3.5
)%
10.5
%
(4.5
)%
Notes:
(1) The impact of the previously disclosed
acquisitions of pet food businesses on as reported volume was 1.5%,
9.5% and 3.5% for Total Company, Hill's and Developed Markets,
respectively.
(2) 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, 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(1)
Volume
Incentives
Exchange
Total Company
3.0
%
7.0
%
(2.0
)%
(2.5
)%
9.5
%
(4.5
)%
North America
3.5
%
3.5
%
(2.0
)%
(2.0
)%
5.5
%
—
%
Latin America
8.5
%
10.5
%
(5.0
)%
(5.0
)%
15.5
%
(2.0
)%
Europe
(10.5
)%
—
%
(4.0
)%
(4.0
)%
4.0
%
(10.5
)%
Asia Pacific
(1.5
)%
5.0
%
(0.5
)%
(0.5
)%
5.5
%
(6.5
)%
Africa/Eurasia
3.5
%
12.0
%
(9.5
)%
(9.5
)%
21.5
%
(8.5
)%
Total CP Products
1.0
%
5.5
%
(3.5
)%
(3.5
)%
9.0
%
(4.5
)%
Hill’s
12.0
%
13.0
%
4.0
%
1.5
%
11.5
%
(3.5
)%
Emerging Markets(2)
3.5
%
8.0
%
(4.5
)%
(4.5
)%
12.5
%
(4.5
)%
Developed Markets
2.5
%
6.0
%
—
%
(1.0
)%
7.0
%
(4.5
)%
Notes:
(1) The impact of the previously disclosed
acquisitions of pet food businesses on as reported volume was 0.5%,
2.5% and 1.0% 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, 2022 and 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
Selling, General and Administrative
Expenses
2022
2021
Selling, general and administrative
expenses, GAAP
$
1,633
$
1,598
2022 Global Productivity Initiative
(1
)
—
Selling, general and administrative
expenses, non-GAAP
$
1,632
$
1,598
Other (Income) Expense, Net
2022
2021
Other (income) expense, net, GAAP
$
18
$
25
2022 Global Productivity Initiative
(14
)
—
Acquisition-related costs
(3
)
—
Other (income) expense, net, non-GAAP
$
1
$
25
Operating Profit
2022
2021
% Change
Operating profit, GAAP
$
202
$
365
(45
)%
Goodwill and intangible assets impairment
charges
721
571
2022 Global Productivity Initiative
15
—
Acquisition-related costs
3
—
Operating profit, non-GAAP
$
941
$
936
1
%
Basis Point
Operating Profit Margin
2022
2021
Change
Operating profit margin, GAAP
4.4
%
8.3
%
(390
)
Goodwill and intangible assets impairment
charges
15.5
%
13
%
2022 Global Productivity Initiative
0.3
%
—
%
Acquisition-related costs
0.1
%
—
%
Operating profit margin, non-GAAP
20.3
%
21.3
%
(100
)
Non-service related post retirement
cost
2022
2021
Non-service related post retirement cost,
GAAP
$
15
$
18
2022 Global Productivity Initiative
(2
)
—
Non-service post retirement cost,
non-GAAP
$
13
$
18
Table 8
Continued
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Three Months Ended
December 31, 2022 vs. 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
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
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
$
324
$
136
$
188
$
148
42.0
%
$
0.18
Goodwill and intangible assets impairment
charges
571
53
518
518
(20.9
)%
0.61
Non-GAAP
$
895
$
189
$
706
$
666
21.1
%
$
0.79
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, 2022 vs. 2021
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
Selling, General and Administrative
Expenses
2022
2021
Selling, general and administrative
expenses, GAAP
$
6,565
$
6,407
2022 Global Productivity Initiative
(5
)
—
Selling, general and administrative
expenses, non-GAAP
$
6,560
$
6,407
Other (Income) Expense, Net
2022
2021
Other (income) expense, net, GAAP
$
69
$
65
2022 Global Productivity Initiative
(90
)
—
Gain on the sale of land in Asia
Pacific
47
—
Acquisition-related costs
(19
)
—
Value-added tax matter in Brazil
—
26
Other (income) expense, net, non-GAAP
$
7
$
91
Operating Profit
2022
2021
% Change
Operating profit, GAAP
$
2,893
$
3,332
(13
)%
Goodwill and intangible assets impairment
charges
721
571
2022 Global Productivity Initiative
95
—
Gain on the sale of land in Asia
Pacific
(47
)
—
Acquisition-related costs
19
—
Value-added tax matter in Brazil
—
(26
)
Operating profit, non-GAAP
$
3,681
$
3,877
(5
)%
Basis Point
Operating Profit Margin
2022
2021
Change
Operating profit margin, GAAP
16.1
%
19.1
%
(300
)
Goodwill and intangible assets impairment
charges
4.0
%
3.4
%
2022 Global Productivity Initiative
0.5
%
—
%
Gain on the sale of land in Asia
Pacific
(0.2
)%
—
%
Acquisition-related costs
0.1
%
—
%
Value-added tax matter in Brazil
—
%
(0.2
)%
Operating profit margin, non-GAAP
20.5
%
22.3
%
(180
)
Interest (Income) Expense, Net
2022
2021
Interest (income) expense, net, GAAP
$
153
$
175
Loss on early extinguishment of debt
—
(75
)
Interest (income) expense, net,
non-GAAP
$
153
$
100
Non-service related post retirement
cost
2022
2021
Non-service related post retirement cost,
GAAP
$
80
$
70
2022 Global Productivity Initiative
(15
)
—
Non-service post retirement cost,
non-GAAP
$
65
$
70
Table 9
Continued
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Twelve Months Ended
December 31, 2022 vs. 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
$
2,660
$
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
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
$
3,087
$
749
$
2,338
$
172
$
2,166
24.3
%
$
2.55
Goodwill and intangible assets impairment
charges
571
53
518
—
518
(2.1
)%
0.61
Loss on early extinguishment of debt
75
20
55
—
55
(0.3
)%
0.07
Value-added tax matter in Brazil
(26
)
(6
)
(20
)
—
(20
)
0.1
%
(0.02
)
Non-GAAP
$
3,707
$
816
$
2,891
$
172
$
2,719
22.0
%
$
3.21
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.
View source
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