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Colgate
🇺🇸 NYSE:CL
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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

Total Revenue
$4.82B
Previous year: $4.48B
+7.5%
EPS
$0.77
Previous year: $0.72
+6.9%
OPHC Sales Growth
7.5%
Previous year: 7%
+7.1%
Pet Nutrition Sales Growth
16%
Previous year: 18%
-11.1%
Gross Profit
$2.79B
Previous year: $2.55B
+9.1%
Cash and Equivalents
$819M
Previous year: $858M
-4.5%
Total Assets
$16.2B
Previous year: $15.7B
+3.3%

Colgate

Colgate

Colgate Revenue by Segment

Colgate Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

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