Colgate Q2 2024 Earnings Report
Key Takeaways
Colgate-Palmolive reported a 4.9% increase in net sales and a 9.0% increase in organic sales for Q2 2024. GAAP EPS increased by 48% to $0.89, and the GAAP gross profit margin increased by 280 basis points to 60.6%. The company has updated its financial guidance for the full year 2024.
Net sales increased by 4.9%, and organic sales increased by 9.0%.
GAAP EPS increased by 48% to $0.89; Base Business EPS increased by 18% to $0.91.
GAAP Gross profit margin increased by 280 basis points to 60.6%; Base Business Gross profit margin increased by 300 basis points to 60.8%.
Colgate's leadership in toothpaste continued with its global market share at 41.5% year to date.
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Colgate Revenue by Segment
Forward Guidance
Colgate-Palmolive updated its financial guidance for full year 2024, expecting net sales growth of 2% to 5%, including a mid-single-digit negative impact from foreign exchange. The company is raising its organic sales growth guidance to 6% to 8%. On a non-GAAP (Base Business) basis, the Company increased its earnings per share growth guidance to 8% to 11%.
Positive Outlook
- The Company still expects net sales growth of 2% to 5% including a mid-single-digit negative impact from foreign exchange.
- The Company is raising its organic sales growth guidance to 6% to 8% (versus 5% to 7% previously).
- 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
- The Company increased its earnings per share growth guidance to 8% to 11% (versus mid to high-single-digit previously).
Challenges Ahead
- Mid-single-digit negative impact from foreign exchange on net sales growth.
- Unspecified risks and uncertainties that could cause actual results to differ materially from forward-looking statements.
- 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.
- Market share data is subject to limitations on the availability of up-to-date information
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income