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Colgate
🇺🇸 NYSE:CL
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•
Dec 31, 2020

Colgate Q4 2020 Earnings Report

Net sales and organic sales increased, GAAP EPS was even, and Base Business EPS grew.

Key Takeaways

Colgate-Palmolive reported strong Q4 2020 results with net sales increasing by 7.5% and organic sales increasing by 8.5%. GAAP EPS remained even at $0.75, while Base Business EPS grew by 5% to $0.77. The company's strong gross profit performance funded a significant increase in advertising, contributing to increases in operating profit, net income, and earnings per share on a base business basis.

Net sales increased by 7.5% and organic sales increased by 8.5%.

GAAP EPS was even with fourth quarter 2019 at $0.75.

Base Business EPS grew 5% to $0.77.

GAAP Gross profit margin increased 100 basis points to 61.1%.

Total Revenue
$4.32B
Previous year: $4.02B
+7.7%
EPS
$0.77
Previous year: $0.73
+5.5%
OPHC Sales Growth
7.5%
Previous year: 5%
+50.0%
Pet Nutrition Sales Growth
16%
Previous year: 8%
+100.0%
Gross Profit
$2.64B
Previous year: $2.41B
+9.5%
Cash and Equivalents
$888M
Previous year: $883M
+0.6%
Free Cash Flow
$554M
Previous year: $635M
-12.8%
Total Assets
$15.9B
Previous year: $15B
+5.9%

Colgate

Colgate

Colgate Revenue by Segment

Colgate Revenue by Geographic Location

Forward Guidance

The Company expects net sales to be up 4% to 7% including a low-single-digit benefit from foreign exchange. The Company expects organic sales to be up within its long-term targeted range of 3% to 5%. On a GAAP basis, the Company expects gross margin expansion, increased advertising investment and low to mid-single-digit earnings-per-share growth. On a non-GAAP (Base Business) basis, the Company expects gross margin expansion, increased advertising investment and mid to high-single-digit earnings-per-share growth.

Positive Outlook

  • Net sales are expected to be up 4% to 7% including a low-single-digit benefit from foreign exchange.
  • Organic sales are expected to be up within its long-term targeted range of 3% to 5%.
  • Gross margin expansion is expected on a GAAP basis.
  • Increased advertising investment is expected on a GAAP basis.
  • Low to mid-single-digit earnings-per-share growth is expected on a GAAP basis.

Challenges Ahead

  • High levels of uncertainty are expected as the company laps the benefits from pantry loading and other impacts of the COVID-19 pandemic.
  • Volatility in raw material and logistics costs is expected.
  • Volatility in foreign exchange is expected.
  • Gross margin expansion is expected on a non-GAAP (Base Business) basis.
  • Increased advertising investment is expected on a non-GAAP (Base Business) basis.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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