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Jun 30, 2020

Colgate Q2 2020 Earnings Report

Colgate-Palmolive's Q2 2020 earnings were announced, demonstrating resilience amidst the COVID-19 pandemic, with organic sales growth driven by North America and Hill's, while facing challenges from foreign exchange impacts.

Key Takeaways

Colgate-Palmolive reported a 1.0% increase in net sales and a 5.5% increase in organic sales for Q2 2020. GAAP EPS grew by 9% to $0.74. The company experienced strong growth in North America and Hill's, but faced challenges due to foreign exchange impacts. Due to continued uncertainty, the company has decided not to reinstate financial guidance for 2020 at this time.

Net sales increased by 1.0%, while organic sales grew by 5.5%.

GAAP EPS increased by 9% to $0.74.

Base Business EPS grew by 3% to $0.74.

The company's leadership in toothpaste and manual toothbrushes continued with global market shares of 40.0% and 31.0%, respectively, year to date.

Total Revenue
$3.9B
Previous year: $3.87B
+0.8%
EPS
$0.74
Previous year: $0.72
+2.8%
OPHC Sales Growth
4%
Pet Nutrition Sales Growth
11.5%
Gross Profit
$2.37B
Previous year: $2.31B
+2.6%
Cash and Equivalents
$997M
Previous year: $863M
+15.5%
Free Cash Flow
$1.64B
Total Assets
$15.1B
Previous year: $13.2B
+15.1%

Colgate

Colgate

Colgate Revenue by Segment

Colgate Revenue by Geographic Location

Forward Guidance

The company anticipates a mid-single digit negative impact on net sales for the year from foreign exchange, based on current spot rates. Given the continued uncertainty related to the impact of the virus and government actions to stem the virus, including macroeconomic impacts, the company has decided not to reinstate its financial guidance for 2020 at this time.

Challenges Ahead

  • Mid-single digit negative impact on net sales for the year from foreign exchange
  • Continued uncertainty related to the impact of the virus
  • Government actions to stem the virus
  • Including macroeconomic impacts
  • Decided not to reinstate our financial guidance for 2020 at this time

Revenue & Expenses

Visualization of income flow from segment revenue to net income