Colgate Q4 2021 Earnings Report
Key Takeaways
Colgate-Palmolive announced its Q4 and full year 2021 results, with Q4 net sales increasing by 2.0% and organic sales increasing by 3.0%. EPS declined by 76% to $0.18, influenced by goodwill and intangible asset impairment charges related to the Filorga skin health business. The company's leadership in toothpaste and manual toothbrushes continued, with global market shares of 39.4% and 30.9% respectively.
Net sales increased by 2.0% with organic sales up by 3.0% for Q4 2021.
EPS decreased by 76% to $0.18 due to impairment charges related to the Filorga business.
Base Business EPS grew 3% to $0.79.
Gross profit margin decreased to 58.1%.
Colgate
Colgate
Colgate Revenue by Segment
Colgate Revenue by Geographic Location
Forward Guidance
The Company expects net sales growth to be 1% to 4% including a low-single-digit negative impact from foreign exchange. The Company expects organic sales growth to be within its long-term targeted range of 3% to 5%. On a GAAP basis, the Company expects gross profit margin expansion, increased advertising investment and double-digit earnings-per-share growth. On a non-GAAP (Base Business) basis, the Company expects gross profit margin expansion, increased advertising investment and low to mid-single-digit earnings-per-share growth.
Positive Outlook
- Net sales growth to be 1% to 4%
- Organic sales growth to be within the long-term targeted range of 3% to 5%
- Gross profit margin expansion is expected
- Increased advertising investment is planned
- Double-digit earnings-per-share growth is anticipated on a GAAP basis
Challenges Ahead
- Low-single-digit negative impact from foreign exchange is expected
- Uncertainty stemming from the COVID-19 pandemic
- Supply chain disruptions are expected to continue
- Increases in raw material and logistics costs are anticipated
- Volatility in consumer demand and currencies is expected
Revenue & Expenses
Visualization of income flow from segment revenue to net income