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Sep 30, 2020
Colgate Q3 2020 Earnings Report
Colgate's performance accelerated with double-digit increases in operating profit, net income, and earnings per share despite COVID-19 challenges.
Key Takeaways
Colgate-Palmolive Company reported strong Q3 2020 results, with net sales increasing by 5.5% and organic sales growing by 7.5%. The company saw double-digit increases in operating profit, net income, and earnings per share. Premium innovation and eCommerce strength, particularly in the Hill's business, drove growth across all product categories.
Net sales grew 5.5% and organic sales grew 7.5% driven by volume growth and higher pricing.
Operating profit, net income, and earnings per share saw double-digit increases.
Premium innovation is driving growth across all product categories.
eCommerce continues to show strength, led by Hill's business.
Revenue by Segment
Forward Guidance
The Company expects 2020 net sales and organic sales to both be up mid-single digits, with organic sales up at the high end of that range. On a GAAP basis, the Company expects gross margin expansion, increased advertising investment and double-digit earnings-per-share growth. On a non-GAAP (Base Business) basis, the Company expects gross margin expansion, increased advertising investment and 6% to 7% earnings-per-share growth.
Positive Outlook
- Net sales are expected to increase by mid-single digits.
- Organic sales are expected to increase by mid-single digits, with organic sales up at the high end of that range.
- Gross margin expansion is expected on a GAAP basis.
- Increased advertising investment is expected on a GAAP basis.
- Double-digit earnings-per-share growth is expected on a GAAP basis.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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