Colgate-Palmolive Company (NYSE:CL):
- Net sales increased 7.5%; Organic sales* increased 8.0% with
growth in every division and in all four categories
- GAAP EPS declined 17% to $0.60; Base Business EPS* increased 7%
to $0.77
- GAAP Gross profit margin and Base Business Gross profit margin*
both increased 80 basis points to 57.8%, including a negative 70
basis point impact from private label sales resulting from the
previously disclosed acquisitions of pet food businesses
- Net cash provided by operations was $1,457 million for the
first six months of 2023
- Colgate’s leadership in toothpaste continued with its global
market share at 40.5% year to date
- Colgate’s leadership in manual toothbrushes continued with its
global market share at 30.4% year to date
- The Company updated its financial guidance for full year
2023
Second Quarter Total Company Results
(GAAP)
($ in millions except per share
amounts)
2023
2022
Change
Net Sales
$4,822
$4,484
+7.5%
EPS (diluted)
$0.60
$0.72
-17%
Second Quarter Total Company Results
(Base Business - Non-GAAP)*
2023
2022
Change
Organic Sales Growth
+8.0%
Base Business EPS (diluted)
$0.77
$0.72
+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 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 2023. Noel Wallace, Chairman, President and Chief
Executive Officer, commented on the Base Business second quarter
results, “We are pleased to have delivered another quarter of
strong top-line momentum along with an increase in profitability.
Net sales increased 7.5% and organic sales grew 8.0%. Gross profit
margin, operating profit margin, operating profit, net income,
earnings per share and free cash flow all increased versus the year
ago quarter.
“We believe we are well positioned to continue to drive top and
bottom line growth through the balance of 2023 as our gross margin
expansion, driven by sustained pricing and the benefits from
funding-the-growth and other productivity initiatives, allows us to
invest behind our brands. Advertising spending increased
significantly in the quarter to drive brand health and in support
of our strong innovation and pricing activity. Strong investment
levels should continue in the back half of the year as we work to
deliver balanced organic sales growth.
“Our strong results this quarter and in the first half add to
our confidence that we are executing the right strategies to
deliver on our updated 2023 financial targets, drive cash flow and
generate long-term value for our stakeholders.”
Full Year 2023 Guidance
Based on current spot rates:
- The Company now expects net sales growth to be 5% to 8%
including the benefit from our acquisitions of pet food businesses
and a low-single-digit negative impact from foreign exchange.
- The Company now expects organic sales growth to be 5% to
7%.
- On a GAAP basis, the Company still expects gross profit margin
expansion, increased advertising investment and double-digit
earnings-per-share growth.
- On a non-GAAP (Base Business) basis, the Company still expects
gross profit margin expansion and increased advertising investment
and now expects earnings-per-share growth to be at the high end of
mid-single-digits.
Divisional Performance
The following are comments about divisional performance for
second quarter 2023 versus the year ago period. See attached "Table
6 - Geographic Sales Analysis Percentage Changes" and "Table 5 -
Segment Information" for additional information on net sales and
operating profit by division.
Second Quarter Sales Growth By
Division (% change 2Q 2023 vs. 2Q 2022)
Net Sales
Organic Sales*
As Reported Volume**
Organic Volume
Pricing
FX
North America
+1.5%
+2.0%
-7.0%
-7.0%
+9.0%
-0.5%
Latin America
+15.5%
+16.0%
+0.5%
+0.5%
+15.5%
-0.5%
Europe
+6.0%
+5.5%
-6.5%
-6.5%
+12.0%
+0.5%
Asia Pacific
-4.5%
+1.0%
-4.5%
-4.5%
+5.5%
-5.5%
Africa/Eurasia
+4.5%
+20.5%
+10.5%
+10.5%
+10.0%
-16.0%
Hill's
+16.0%
+10.5%
+4.0%
-3.0%
+13.5%
-1.5%
Total Company
+7.5%
+8.0%
-1.5%
-3.0%
+11.0%
-2.0%
*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 7.0%
and 1.5% for Hill's and Total Company, respectively.
Second Quarter Operating
Profit By Division ($ in millions)
2Q 2023
% Change vs 2Q 2022
% to Net Sales
Change in basis points vs 2Q 2022
% to Net Sales
North America
$227
16%
23.2%
+290
Latin America
$363
38%
30.8%
+490
Europe
$134
1%
19.8%
-100
Asia Pacific
$169
3%
25.5%
+190
Africa/Eurasia
$62
24%
23.1%
+360
Hill's
$191
-10%
18.1%
-520
Total Company, As Reported
$974
10%
20.2%
+50
Total Company, Base Business*
$992
11%
20.6%
+60
*Indicates a non-GAAP financial measure.
Please refer to “Non-GAAP Financial Measures” later in this release
for definitions of non-GAAP financial measures and to “Table 8 -
Non-GAAP Reconciliations” included with this release for a
reconciliation of these non-GAAP financial measures to the related
GAAP measures.
North America (20% of Company
Sales)
- Organic sales growth in home care and personal care was
partially offset by organic sales declines in oral care.
- In the United States, Colgate's share of the toothpaste market
is 33.9% year to date and its share of the manual toothbrush market
is 41.0% year to date.
- The increase in Operating profit as a percentage of Net sales
was primarily due to higher pricing and cost savings from the
Company’s funding-the-growth initiatives, partially offset by
higher raw and packaging material costs.
Latin America (24% of Company
Sales)
- Organic sales growth was led by Argentina, Mexico, Brazil and
Colombia.
- The increase in Operating profit as a percentage of Net sales
was primarily due to higher pricing and cost savings from the
Company’s funding-the-growth initiatives, partially offset by
higher raw and packaging material costs and a value-added tax
refund in the second quarter of 2022.
Europe (14% of Company
Sales)
- Organic sales growth was led by the United Kingdom and
Germany.
- 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 higher pricing, cost savings from the Company’s
funding-the-growth initiatives, favorable mix and lower
amortization expenses.
Asia Pacific (14% of Company
Sales)
- Organic sales growth led by India, the Philippines and
Australia 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,
higher pricing and lower overhead expenses, partially offset by
significantly higher raw and packaging material costs.
Africa/Eurasia (6% of Company
Sales)
- Organic sales growth was led by the Eurasia region, Türkiye 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 lower overhead
expenses, partially offset by significantly higher raw and
packaging material costs, which included foreign exchange
transaction costs, and increased advertising investment.
Hill's Pet Nutrition (22% of Company
Sales)
- Organic sales growth led by the United States and Europe was
partially offset by organic sales declines in Australia.
- The decrease in Operating profit as a percentage of Net sales
was primarily due to significantly higher raw and packaging
material costs, unfavorable mix due to private label sales
resulting from the previously disclosed acquisitions of pet food
businesses and increased advertising investment, partially offset
by higher pricing, cost savings from the Company’s
funding-the-growth initiatives and lower overhead expenses.
Prepared Materials and Webcast
Information
At approximately 7:00 a.m. ET today, Colgate will post its
prepared materials (in PDF format) regarding second quarter results
to the Investor Center section of its website at
https://investor.colgatepalmolive.com/events-and-presentations.
At 8:00 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
that is reimagining a healthier future for all people, their pets
and our planet. Focused on Oral Care, Personal Care, Home Care and
Pet Nutrition, we sell our products in more than 200 countries and
territories under brands such as Colgate, Palmolive, elmex, hello,
meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring,
PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion,
Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and
Hill’s Prescription Diet. The Company is recognized for its
leadership and innovation in promoting sustainability and community
wellbeing, including its 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
1.6 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 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, 2022 and subsequent filings with the SEC). Copies of these
filings may be obtained upon request from the Company’s Investor
Relations Department or on the Company’s website at
www.colgatepalmolive.com.
Non-GAAP Financial
Measures
The following provides definitions and other information
regarding the non-GAAP financial measures used in this press
release and the related prepared materials and webcast, which may
not be the same as or comparable to similar measures presented by
other companies:
- Base Business: Base Business refers to non-GAAP measures of
operating results that exclude certain items. Base Business
operating results exclude, as applicable, charges related to an
ERISA litigation matter, a foreign tax matter, the 2022 Global
Productivity Initiative and product recall costs.
- Organic sales growth: Net sales growth excluding the impact of
foreign exchange, acquisitions and divestments.
- Free cash flow before dividends: Net cash provided by
operations less Capital expenditures.
This press release discusses Net sales growth (GAAP) and Organic
sales growth (non-GAAP). Management believes the organic sales
growth measure provides investors and analysts with useful
supplemental information regarding the Company’s underlying sales
trends by presenting sales growth excluding the external factor of
foreign exchange as well as the impact from acquisitions and
divestments. See “Geographic Sales Analysis Percentage Changes” for
the three and six months ended June 30, 2023 versus 2022 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,
acquisition-related costs, gains and losses from certain
divestitures and certain other unusual, non-recurring items.
Investors and analysts use these financial measures in assessing
the Company’s business performance, and management believes that
presenting these financial measures on a non-GAAP basis provides
them with useful supplemental information to enhance their
understanding of the Company’s underlying business performance and
trends. These non-GAAP financial measures also enhance the ability
to compare period-to-period financial results. See “Non-GAAP
Reconciliations” for the three and six months ended June 30, 2023
and 2022 included with this release for a reconciliation of these
financial measures to the related GAAP measures.
The Company uses these financial measures internally in its
budgeting process, to evaluate segment and overall operating
performance and as factors in determining compensation. While the
Company believes that these financial measures are useful in
evaluating the Company’s underlying business performance and
trends, this information should be considered as supplemental in
nature and is not meant to be considered in isolation or as a
substitute for the related financial information prepared in
accordance with GAAP.
As management uses free cash flow before dividends to evaluate
the Company’s ability to satisfy current and future obligations,
pay dividends, fund future business opportunities and repurchase
stock, the Company believes that it provides useful information to
investors. Free cash flow before dividends is not a measure of cash
available for discretionary expenditures since the Company has
certain non-discretionary obligations such as debt service that are
not deducted from the measure. See “Condensed Consolidated
Statements of Cash Flows” for the six months ended June 30, 2023
and 2022 for a comparison of free cash flow before dividends to Net
cash provided by operations as reported in accordance with
GAAP.
(See attached tables for second quarter
results.)
Table 1
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Income
For the Three Months Ended
June 30, 2023 and 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2023
2022
Net sales
$
4,822
$
4,484
Cost of sales
2,035
1,930
Gross profit
2,787
2,554
Gross profit margin
57.8
%
57.0
%
Selling, general and administrative
expenses
1,768
1,657
Other (income) expense, net
45
13
Operating profit
974
884
Operating profit margin
20.2
%
19.7
%
Non-service related postretirement
costs
29
12
Interest (income) expense, net
58
31
Income before income taxes
887
841
Provision for income taxes
353
202
Effective tax rate
39.8
%
24.0
%
Net income including noncontrolling
interests
534
639
Less: Net income attributable to
noncontrolling interests
32
36
Net income attributable to
Colgate-Palmolive Company
$
502
$
603
Earnings per common share
Basic
$
0.61
$
0.72
Diluted
$
0.60
$
0.72
Supplemental Income Statement
Information
Average common shares outstanding
Basic
829.4
836.8
Diluted
831.3
839.4
Advertising
$
601
$
501
Table 2
Colgate-Palmolive
Company
Condensed Consolidated
Statements of Income
For the Six Months Ended June
30, 2023 and 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2023
2022
Net sales
$
9,592
$
8,883
Cost of sales
4,093
3,757
Gross profit
5,499
5,126
Gross profit margin
57.3
%
57.7
%
Selling, general and administrative
expenses
3,526
3,298
Other (income) expense, net
90
84
Operating profit
1,883
1,744
Operating profit margin
19.6
%
19.6
%
Non-service related postretirement
costs
323
50
Interest (income) expense, net
112
58
Income before income taxes
1,448
1,636
Provision for income taxes
500
394
Effective tax rate
34.5
%
24.1
%
Net income including noncontrolling
interests
948
1,242
Less: Net income attributable to
noncontrolling interests
74
80
Net income attributable to
Colgate-Palmolive Company
$
874
$
1,162
Earnings per common share
Basic(1)
$
1.05
$
1.39
Diluted(1)
$
1.05
$
1.38
Supplemental Income Statement
Information
Average common shares outstanding
Basic
830.4
838.7
Diluted
832.1
841.5
Advertising
$
1,180
$
1,007
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, 2023, December
31, 2022 and June 30, 2022
(Dollars in Millions)
(Unaudited)
June 30,
December 31,
June 30,
2023
2022
2022
Cash and cash equivalents
$
819
$
775
$
858
Receivables, net
1,656
1,504
1,490
Inventories
2,039
2,074
2,012
Other current assets
923
760
800
Property, plant and equipment, net
4,431
4,307
3,765
Goodwill
3,373
3,352
3,238
Other intangible assets, net
1,901
1,920
2,314
Other assets
1,085
1,039
1,234
Total assets
$
16,227
$
15,731
$
15,711
Total debt
$
8,989
$
8,766
$
7,986
Other current liabilities
4,597
3,979
4,366
Other non-current liabilities
2,326
2,180
2,801
Total liabilities
15,912
14,925
15,153
Total Colgate-Palmolive Company
shareholders’ equity
(64
)
401
168
Noncontrolling interests
379
405
390
Total liabilities and equity
$
16,227
$
15,731
$
15,711
Supplemental Balance Sheet
Information
Debt less cash, cash equivalents and
marketable securities(1)
$
7,903
$
7,816
$
7,008
Working capital % of sales
(1.3
)%
1.0
%
(1.0
)%
Note:
(1) Marketable securities of $267, $175
and $120 as of June 30, 2023, December 31, 2022 and June 30, 2022,
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, 2023 and 2022
(Dollars in Millions)
(Unaudited)
2023
2022
Operating Activities
Net income including noncontrolling
interests
$
948
$
1,242
Adjustments to reconcile Net income
including noncontrolling interests to Net cash provided by
operations:
Depreciation and amortization
273
276
ERISA litigation matter
267
—
Restructuring and termination benefits,
net of cash
(8
)
73
Stock-based compensation expense
37
45
Deferred income taxes
(156
)
(16
)
Cash effects of changes in:
Receivables
(112
)
(191
)
Inventories
54
(332
)
Accounts payable and other accruals
153
(167
)
Other non-current assets and
liabilities
1
(16
)
Net cash provided by (used in)
operations
1,457
914
Investing Activities
Capital expenditures
(347
)
(300
)
Purchases of marketable securities and
investments
(225
)
(126
)
Proceeds from sale of marketable
securities and investments
146
35
Payment for acquisition, net of cash
acquired
—
(90
)
Other investing activities
(12
)
(1
)
Net cash provided by (used in) investing
activities
(438
)
(482
)
Financing Activities
Short-term borrowing (repayment) less than
90 days, net
(415
)
988
Principal payments on debt
(903
)
—
Proceeds from issuance of debt
1,497
14
Dividends paid
(847
)
(814
)
Purchases of treasury shares
(551
)
(791
)
Proceeds from exercise of stock
options
259
236
Other financing activities
5
(18
)
Net cash provided by (used in) financing
activities
(955
)
(385
)
Effect of exchange rate changes on Cash
and cash equivalents
(20
)
(21
)
Net increase (decrease) in Cash and cash
equivalents
44
26
Cash and cash equivalents at beginning of
the period
775
832
Cash and cash equivalents at end of the
period
$
819
$
858
Supplemental Cash Flow
Information
Free cash flow before dividends (Net cash
provided by operations less Capital expenditures)
Net cash provided by operations
$
1,457
$
914
Less: Capital expenditures
(347
)
(300
)
Free cash flow before dividends
$
1,110
$
614
Income taxes paid
$
450
$
477
Interest paid
$
129
$
65
Table 5
Colgate-Palmolive
Company
Segment Information
For the Three and Six Months
Ended June 30, 2023 and 2022
(Dollars in Millions)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Net Sales
Oral, Personal and Home Care
North America
$
978
$
965
$
1,936
$
1,891
Latin America
1,178
1,019
2,253
1,973
Europe
678
639
1,328
1,293
Asia Pacific
664
696
1,402
1,422
Africa/Eurasia
268
256
556
523
Total Oral, Personal and Home Care
3,766
3,575
7,475
7,102
Pet Nutrition
1,056
909
2,117
1,781
Total Net Sales
$
4,822
$
4,484
$
9,592
$
8,883
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Operating Profit
Oral, Personal and Home Care
North America
$
227
$
196
$
420
$
359
Latin America
363
264
678
529
Europe
134
133
250
283
Asia Pacific
169
164
371
370
Africa/Eurasia
62
50
130
94
Total Oral, Personal and Home Care
955
807
1,849
1,635
Pet Nutrition
191
212
374
416
Corporate(1)
(172
)
(135
)
(340
)
(307
)
Total Operating Profit
$
974
$
884
$
1,883
$
1,744
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 June 30, 2023 included charges resulting from
the 2022 Global Productivity Initiative of $18.
Corporate Operating profit (loss) for the
six months ended June 30, 2023 included product recall costs of $25
and charges resulting from the 2022 Global Productivity Initiative
of $23.
Corporate Operating profit (loss) for the
three and six months ended June 30, 2022 included charges resulting
from the 2022 Global Productivity Initiative of $13 and $76,
respectively.
Table 6
Colgate-Palmolive
Company
Geographic Sales Analysis
Percentage Changes
For the Three Months Ended
June 30, 2023 vs. 2022
(Unaudited)
COMPONENTS OF SALES
CHANGE
Pricing
Coupons
Sales
Consumer &
Change
Organic
As Reported
Organic
Trade
Foreign
Region
As
Reported
Sales
Change
Volume(1)
Volume
Incentives
Exchange
Total Company
7.5
%
8.0
%
(1.5
)%
(3.0
)%
11.0
%
(2.0
)%
North America
1.5
%
2.0
%
(7.0
)%
(7.0
)%
9.0
%
(0.5
)%
Latin America
15.5
%
16.0
%
0.5
%
0.5
%
15.5
%
(0.5
)%
Europe
6.0
%
5.5
%
(6.5
)%
(6.5
)%
12.0
%
0.5
%
Asia Pacific
(4.5
)%
1.0
%
(4.5
)%
(4.5
)%
5.5
%
(5.5
)%
Africa/Eurasia
4.5
%
20.5
%
10.5
%
10.5
%
10.0
%
(16.0
)%
Total CP Products
5.5
%
7.5
%
(3.0
)%
(3.0
)%
10.5
%
(2.0
)%
Hill’s
16.0
%
10.5
%
4.0
%
(3.0
)%
13.5
%
(1.5
)%
Emerging Markets(2)
7.0
%
11.0
%
(1.0
)%
(1.0
)%
12.0
%
(4.0
)%
Developed Markets
8.0
%
6.0
%
(2.5
)%
(5.0
)%
11.0
%
(0.5
)%
Notes:
(1) The impact of the previously disclosed
acquisitions of pet food businesses on as reported volume was 1.5%,
7.0% and 2.5% 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 Six Months Ended June
30, 2023 vs. 2022
(Unaudited)
COMPONENTS OF SALES
CHANGE
Pricing
Coupons
Sales
Consumer &
Change
Organic
As Reported
Organic
Trade
Foreign
Region
As
Reported
Sales
Change
Volume(1)
Volume
Incentives
Exchange
Total Company
8.0
%
9.0
%
(1.0
)%
(2.5
)%
11.5
%
(2.5
)%
North America
2.5
%
3.0
%
(7.0
)%
(7.0
)%
10.0
%
(0.5
)%
Latin America
14.0
%
15.0
%
(1.5
)%
(1.5
)%
16.5
%
(1.0
)%
Europe
2.5
%
5.0
%
(5.0
)%
(5.0
)%
10.0
%
(2.5
)%
Asia Pacific
(1.5
)%
5.0
%
(1.0
)%
(1.0
)%
6.0
%
(6.5
)%
Africa/Eurasia
6.5
%
18.5
%
2.5
%
2.5
%
16.0
%
(12.0
)%
Total CP Products
5.5
%
8.0
%
(3.5
)%
(3.5
)%
11.5
%
(2.5
)%
Hill’s
19.0
%
12.0
%
8.0
%
(0.5
)%
12.5
%
(1.5
)%
Emerging Markets(2)
7.5
%
11.5
%
(1.5
)%
(1.5
)%
13.0
%
(4.0
)%
Developed Markets
8.0
%
6.5
%
(0.5
)%
(3.5
)%
10.0
%
(1.5
)%
Notes:
(1) The impact of the previously disclosed
acquisitions of pet food businesses on as reported volume was 1.5%,
8.5% and 3.0% 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
June 30, 2023 and 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
Selling, General and Administrative
Expenses
2023
2022
Selling, general and administrative
expenses, GAAP
$
1,768
$
1,657
2022 Global Productivity Initiative
(2
)
(3
)
Selling, general and administrative
expenses, non-GAAP
$
1,766
$
1,654
Basis Point
Selling, General and Administrative
Expenses as a Percentage of Net Sales
2023
2022
Change
Selling, general and administrative
expenses as a percentage of Net sales, GAAP
36.7
%
37.0
%
(30
)
2022 Global Productivity Initiative
(0.1
)%
(0.1
)%
Selling, general and administrative
expenses as a percentage of Net sales, non-GAAP
36.6
%
36.9
%
(30
)
Other (Income) Expense, Net
2023
2022
Other (income) expense, net, GAAP
$
45
$
13
2022 Global Productivity Initiative
(16
)
(10
)
Other (income) expense, net, non-GAAP
$
29
$
3
Operating Profit
2023
2022
% Change
Operating profit, GAAP
$
974
$
884
10
%
2022 Global Productivity Initiative
18
13
Operating profit, non-GAAP
$
992
$
897
11
%
Basis Point
Operating Profit Margin
2023
2022
Change
Operating profit margin, GAAP
20.2
%
19.7
%
50
2022 Global Productivity Initiative
0.4
%
0.3
%
Operating profit margin, non-GAAP
20.6
%
20.0
%
60
Non-Service Related Postretirement
Costs
2023
2022
Non-service related postretirement costs,
GAAP
$
29
$
12
2022 Global Productivity Initiative
(3
)
5
Non-service related postretirement costs,
non-GAAP
$
26
$
17
Table 8
Continued
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Three Months Ended
June 30, 2023 and 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2023
Income Before Income
Taxes
Provision For Income
Taxes(1)
Net Income
Including Noncontrolling Interests
Less: Income Attributable to
Noncontrolling Interests
Net Income Attributable
To Colgate-Palmolive Company
Effective Income Tax
Rate(2)
Diluted Earnings Per
Share
As Reported GAAP
$
887
$
353
$
534
$
32
$
502
39.8%
$
0.60
Foreign tax matter
—
(126)
126
—
126
(14.2)%
0.15
2022 Global Productivity Initiative
21
4
17
1
16
(0.2)%
0.02
Non-GAAP
$
908
$
231
$
677
$
33
$
644
25.4%
$
0.77
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
$
841
$
202
$
639
$
36
$
603
24.0%
$
0.72
2022 Global Productivity Initiative
8
2
6
1
5
—%
—
Non-GAAP
$
849
$
204
$
645
$
37
$
608
24.0%
$
0.72
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, 2023 and 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
Selling, General and Administrative
Expenses
2023
2022
Selling, general and administrative
expenses, GAAP
$
3,526
$
3,298
2022 Global Productivity Initiative
(2
)
(3
)
Selling, general and administrative
expenses, non-GAAP
$
3,524
$
3,295
Basis Point
Selling, General and Administrative
Expenses as a Percentage of Net Sales
2023
2022
Change
Selling, general and administrative
expenses as a percentage of Net sales, GAAP
36.8
%
37.1
%
(30
)
2022 Global Productivity Initiative
(0.1
)%
—
%
Selling, general and administrative
expenses as a percentage of Net sales, non-GAAP
36.7
%
37.1
%
(40
)
Other (Income) Expense, Net
2023
2022
Other (income) expense, net, GAAP
$
90
$
84
Product recall costs
(25
)
—
2022 Global Productivity Initiative
(21
)
(73
)
Other (income) expense, net, non-GAAP
$
44
$
11
Operating Profit
2023
2022
% Change
Operating profit, GAAP
$
1,883
$
1,744
8
%
Product recall costs
25
—
2022 Global Productivity Initiative
23
76
Operating profit, non-GAAP
$
1,931
$
1,820
6
%
Basis Point
Operating Profit Margin
2023
2022
Change
Operating profit margin, GAAP
19.6
%
19.6
%
—
Product recall costs
0.3
%
—
%
2022 Global Productivity Initiative
0.2
%
0.9
%
Operating profit margin, non-GAAP
20.1
%
20.5
%
(40
)
Non-Service Related Postretirement
Costs
2023
2022
Non-service related postretirement costs,
GAAP
$
323
$
50
ERISA litigation matter
(267
)
—
2022 Global Productivity Initiative
(4
)
(14
)
Non-service related postretirement costs,
non-GAAP
$
52
$
36
Table 9
Continued
Colgate-Palmolive
Company
Non-GAAP
Reconciliations
For the Six Months Ended June
30, 2023 and 2022
(Dollars in Millions Except
Per Share Amounts) (Unaudited)
2023
Income Before Income
Taxes
Provision For Income
Taxes(1)
Net Income
Including Noncontrolling Interests
Less: Income Attributable to
Noncontrolling Interests
Net Income Attributable
To Colgate-Palmolive Company
Effective Income Tax
Rate(2)
Diluted Earnings Per
Share
As Reported GAAP
$
1,448
$
500
$
948
$
74
$
874
34.5%
$
1.05
ERISA litigation matter
267
55
212
—
212
(2.2)%
0.25
Foreign tax matter
—
(126)
126
—
126
(7.3)%
0.15
2022 Global Productivity Initiative
27
5
22
1
21
(0.1)%
0.03
Product recall costs
25
6
19
—
19
—%
0.02
Non-GAAP
$
1,767
$
440
$
1,327
$
75
$
1,252
24.9%
$
1.50
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
$
1,636
$
394
$
1,242
$
80
$
1,162
24.1%
$
1.38
2022 Global Productivity Initiative
90
19
71
1
70
(0.2)%
0.08
Non-GAAP
$
1,726
$
413
$
1,313
$
81
$
1,232
23.9%
$
1.46
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.
View source
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