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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%.
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 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