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Dec 31, 2023

Colgate Q4 2023 Earnings Report

Colgate-Palmolive finished the year with strong top and bottom-line results

Key Takeaways

Colgate-Palmolive reported strong Q4 2023 results, with a 7.0% increase in both net and organic sales. The company saw improvements to organic volume performance, gross and operating profit margin expansion, and double-digit earnings per share growth. For the full year, net and organic sales grew by 8.5%.

Net sales and organic sales both increased 7.0%.

GAAP EPS increased to $0.87.

Base Business EPS increased 13% to $0.87.

GAAP Gross profit margin and Base Business Gross profit margin both increased 400 basis points to 59.6%.

Total Revenue
$4.95B
Previous year: $4.63B
+6.9%
EPS
$0.87
Previous year: $0.77
+13.0%
OPHC sales growth
7%
Previous year: 7%
+0.0%
Pet Nutrition sales growth
4.5%
Previous year: 13%
-65.4%
Gross Profit
$2.95B
Previous year: $2.57B
+14.6%
Cash and Equivalents
$966M
Previous year: $775M
+24.6%
Free Cash Flow
$939M
Previous year: -$23M
-4182.6%
Total Assets
$16.4B
Previous year: $15.7B
+4.2%

Colgate

Colgate

Colgate Revenue by Segment

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%.

Positive Outlook

  • Expects net sales growth to be 1% to 4%
  • Expects organic sales growth to be within its long-term targeted range of 3% to 5%.
  • Expects gross profit margin expansion on a GAAP basis
  • Expects increased advertising investment on a GAAP basis
  • Expects double-digit earnings-per-share growth on a GAAP basis

Challenges Ahead

  • Expects a low-single-digit negative impact from foreign exchange.
  • Expects gross profit margin expansion on a non-GAAP basis
  • Expects increased advertising investment on a non-GAAP basis
  • Expects mid to high-single-digit earnings-per-share growth on a non-GAAP basis
  • No other negatives were specified

Revenue & Expenses

Visualization of income flow from segment revenue to net income