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Jun 30, 2023
Colgate Q2 2023 Earnings Report
Colgate-Palmolive experienced net sales increase and organic sales growth, with growth in every division and in all four categories.
Key Takeaways
Colgate-Palmolive reported a strong second quarter in 2023, with net sales increasing by 7.5% and organic sales growing by 8.0%. The company saw growth in every division and in all four categories. Diluted EPS was $0.60, a 17% decrease, while base business EPS increased 7% to $0.77. The company updated its full year 2023 financial guidance.
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
The Company updated its financial guidance for full year 2023
Colgate
Colgate
Colgate Revenue by Segment
Colgate Revenue by Geographic Location
Revenue by Segment
OPHC North America Revenue
CapyFin.comOPHC Latin America Revenue
CapyFin.comOPHC Europe Revenue
CapyFin.comOPHC Asia Pacific Revenue
CapyFin.comOPHC Africa/Eurasia Revenue
CapyFin.comPet Nutrition Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comLatin America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comAfrica/Eurasia Revenue
CapyFin.com Forward Guidance
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.
Positive Outlook
- Net sales growth to be 5% to 8%
- Benefit from acquisitions of pet food businesses
- Organic sales growth to be 5% to 7%
- Gross profit margin expansion
- Increased advertising investment
Challenges Ahead
- Low-single-digit negative impact from foreign exchange
- Double-digit earnings-per-share growth on a GAAP basis
- Earnings-per-share growth to be at the high end of mid-single-digits on a non-GAAP basis
- Significantly higher raw and packaging material costs
- Unfavorable mix due to private label sales resulting from the previously disclosed acquisitions of pet food businesses
Revenue & Expenses
Visualization of income flow from segment revenue to net income