Colgate-Palmolive Company Announces 3rd Quarter 2025 Results
NEW YORK--( BUSINESS WIRE)--Colgate-Palmolive Company (NYSE:CL):
Third Quarter Total Company Results (GAAP)
($ in millions except per share amounts)
2025
2024
Change
Net Sales
$5,131
$5,033
+2.0%
EPS (diluted)
$0.91
$0.90
+1%
Third Quarter Total Company Results (Base Business - Non-GAAP)*
2025
2024
Change
Organic Sales Growth
+0.4%
Base Business EPS (diluted)
$0.91
$0.91
—%
*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 6 - Geographic Sales Analysis Percentage Changes” and “Table 8 - Non-GAAP Reconciliations” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.
Colgate-Palmolive Company (NYSE:CL) today reported results for third quarter 2025. Noel Wallace, Chairman, President and Chief Executive Officer, commented on the Base Business third quarter results, “We are pleased to have delivered another quarter of net sales and organic sales growth, even in the face of slowing category growth in many markets and the negative impact from lower private label pet sales as we have exited that non-strategic business.
“As we transition to our new 2030 strategy and deploy our previously announced Strategic Growth and Productivity Program, we are well positioned to reaccelerate growth despite uncertainty in global markets and lower worldwide category growth. The 2030 strategy is our blueprint for adapting to the challenges and capturing the opportunities of this more complex operating environment. Our organization is aligned and motivated, with particular focus around accelerating our science-based innovation and omni-channel demand generation capabilities to drive category growth and market shares. The Strategic Growth and Productivity Program will help ensure we have the organizational structure and support we need to achieve our goals in the near term and deliver consistent compounded earnings per share growth over the long term.”
Full Year 2025 Guidance
Based on current spot rates and including the estimated impact of tariffs announced and finalized as of October 29, 2025:
Divisional Performance
See attached "Table 6 - Geographic Sales Analysis Percentage Changes" and "Table 5 - Segment Information" for additional information on net sales and operating profit by division.
Third Quarter Sales Growth By Division
(% change 3Q 2025 vs. 3Q 2024 except % of Total Company Sales)
% of Total
Company
Sales
Net
Sales
Organic
Sales*
As
Reported
Volume**
Organic
Volume
Pricing
FX
North America
19%
-0.4%
-0.5%
-0.5%
-0.5%
+0.1%
+0.1%
Latin America
23%
+2.0%
+1.7%
-1.9%
-1.9%
+3.6%
+0.3%
Europe
16%
+7.6%
+1.2%
+0.8%
+0.8%
+0.4%
+6.4%
Asia Pacific
14%
-1.5%
-1.0%
-3.5%
-3.5%
+2.5%
-0.5%
Africa/Eurasia
6%
+6.8%
+6.2%
-1.1%
-1.1%
+7.3%
+0.6%
Hill’s Pet Nutrition
22%
+1.4%
-1.3%
-2.6%
-4.2%
+2.9%
+1.1%
Total Company
100%
+2.0%
+0.4%
-1.5%
-1.9%
+2.3%
+1.2%
Note: Table may not sum due to rounding.
*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 6 - Geographic Sales Analysis Percentage Changes” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.
**The impact of the acquisition of the Prime100 pet food business on as reported volume was 1.6% and 0.4% for Hill's Pet Nutrition and Total Company, respectively.
Third Quarter Operating Profit By Division
($ in millions)
3Q 2025
% Change vs.
3Q 2024
% to Net
Sales
Change in basis
points vs. 3Q 2024
% to Net Sales
North America
$190
-8%
19.0%
-150
Latin America
$337
-8%
28.6%
-300
Europe
$209
16%
26.1%
+180
Asia Pacific
$188
-6%
26.2%
-120
Africa/Eurasia
$68
5%
23.0%
-40
Hill’s Pet Nutrition
$255
-1%
22.4%
-50
Total Company, As Reported
$1,059
-1%
20.6%
-60
Total Company, Base Business*
$1,059
-2%
20.6%
-90
*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 8 - Non-GAAP Reconciliations” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.
Prepared Materials and Webcast Information
At approximately 7:00 a.m. ET today, the Company will post its prepared materials regarding third quarter results to the Investor Center section of its website at https://investor.colgatepalmolive.com/events-and-presentations.
At 8:30 a.m. ET today, the Company will host a conference call regarding third quarter results. To access this call as a webcast, please go to Colgate-Palmolive’s website at www.colgatepalmolive.com.
About Colgate-Palmolive
Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, we sell our products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline and Suavitel, as well as Hill’s Science Diet, Hill’s Prescription Diet and Prime100. The Company is recognized for its leadership and innovation in promoting sustainability and community wellbeing, including its achievements in decreasing plastic waste and promoting recyclability, saving water, conserving natural resources and improving children’s oral health through the Colgate Bright Smiles, Bright Futures program, which has reached approximately two billion children and their families since 1991. For more information about Colgate-Palmolive’s global business and how the Company is building a future to smile about, visit www.colgatepalmolive.com. CL-E
Market Share Information
Management uses market share information as a key indicator to monitor business health and performance. References to market share in this press release are based on a combination of consumption and market share data provided by third-party vendors, primarily Nielsen, and internal estimates. All market share references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company competes and purchases data (excluding Venezuela from all periods).
Market share data is subject to limitations on the availability of up-to-date information. In particular, market share data is currently not generally available for certain retail channels, such as eCommerce and certain club retailers and discounters. The Company measures year-to-date market shares from January 1 of the relevant year through the most recent period for which market share data is available, which typically reflects a lag time of one or two months. The Company believes that the third-party vendors it uses to provide data are reliable, but it has not verified the accuracy or completeness of the data or any assumptions underlying the data. In addition, market share information reported by the Company may be different from market share information reported by other companies due to differences in category definitions, the use of data from different countries, internal estimates and other factors.
Cautionary Statement on Forward-Looking Statements
This press release and the related prepared materials and webcast may contain forward-looking statements (as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission (SEC) in its rules, regulations and releases) that set forth anticipated results based on management’s current plans and assumptions. Such statements may relate, for example, to sales or volume growth, net selling price increases, organic sales growth, profit or profit margin levels, earnings per share levels, financial goals, category growth rates, the impact of foreign exchange, the impact of tariffs, the impact of geopolitical conflicts and tensions, such as the war in Ukraine, the conflict in the Middle East, tensions between China and Taiwan and global trade relations, cost reduction plans (including the Strategic Growth and Productivity Program), tax rates, interest rates, new product introductions, digital capabilities, commercial investment levels, acquisitions, divestitures, share repurchases or legal or tax proceedings, among other matters. These statements are made, except as otherwise noted with respect to tariffs, on the basis of the Company’s views and assumptions as of October 31, 2025. The Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, except as required by law or by the rules and regulations of the SEC. Moreover, the Company does not, nor does any other person, assume responsibility for the accuracy and completeness of these statements. The Company cautions investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. For more information about factors that could impact the Company’s business and cause actual results to differ materially from forward-looking statements, investors should refer to the Company’s filings with the SEC (including, but not limited to, the information set forth under the captions “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings with the SEC). Copies of these filings may be obtained upon request from the Company’s Investor Relations Department or on the Company’s website at www.colgatepalmolive.com.
Non-GAAP Financial Measures
The following provides definitions and other information regarding the non-GAAP financial measures used in this press release and the related prepared materials and webcast, which may not be the same as or comparable to similar measures presented by other companies:
This press release and the related prepared materials and webcast discuss Net sales growth (GAAP) and Organic sales growth (non-GAAP). Management believes the organic sales growth measure provides investors and analysts with useful supplemental information regarding the Company’s underlying sales trends by presenting sales growth excluding the external factor of foreign exchange as well as the impact from acquisitions and divestments. See “Geographic Sales Analysis Percentage Changes” for the three and nine months ended September 30, 2025 versus 2024 included with this release for a comparison of Organic sales growth to Net sales growth in accordance with GAAP.
Gross profit, Gross profit margin, Selling, general and administrative expenses, Selling, general and administrative expenses as a percentage of Net sales, Other (income) expense, net, Operating profit, Operating profit margin, Non-service related postretirement costs, Effective income tax rate, Net income attributable to Colgate-Palmolive Company and Diluted earnings per common share are disclosed on both an as reported (GAAP) and Base Business (non-GAAP) basis. These non-GAAP financial measures exclude items that, either by their nature or amount, management would not expect to occur as part of the Company’s normal business on a regular basis, such as restructuring charges, charges for certain litigation and tax matters, acquisition-related costs, gains and losses from certain divestitures and certain other unusual, non-recurring items. Investors and analysts use these financial measures in assessing the Company’s business performance, and management believes that presenting these financial measures on a non-GAAP basis provides them with useful supplemental information to enhance their understanding of the Company’s underlying business performance and trends. These non-GAAP financial measures also enhance the ability to compare period-to-period financial results. See “Non-GAAP Reconciliations” for the three and nine months ended September 30, 2025 and 2024 included with this release for a reconciliation of these financial measures to the related GAAP measures.
The Company uses these financial measures internally in its budgeting process, to evaluate segment and overall operating performance and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company’s underlying business performance and trends, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.
As management uses free cash flow before dividends to evaluate the Company’s ability to satisfy current and future obligations, pay dividends, fund future business opportunities and repurchase stock, the Company believes that it provides useful information to investors. Free cash flow before dividends is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. See “Condensed Consolidated Statements of Cash Flows” for the nine months ended September 30, 2025 and 2024 for a comparison of free cash flow before dividends to Net cash provided by operations as reported in accordance with GAAP.
(See attached tables for third quarter results.)
Table 1
Colgate-Palmolive Company
Condensed Consolidated Statements of Income
For the Three Months Ended September 30, 2025 and 2024
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2025
2024
Net sales
$
5,131
$
5,033
Cost of sales
2,082
1,959
Gross profit
3,049
3,074
Gross profit margin
59.4
%
61.1
%
Selling, general and administrative expenses
1,971
1,979
Other (income) expense, net
19
30
Operating profit
1,059
1,065
Operating profit margin
20.6
%
21.2
%
Non-service related postretirement costs
21
23
Interest expense
67
74
Interest income
21
18
Income before income taxes
992
986
Provision for income taxes
226
210
Effective tax rate
22.8
%
21.3
%
Net income including noncontrolling interests
766
776
Less: Net income attributable to noncontrolling interests
31
39
Net income attributable to Colgate-Palmolive Company
$
735
$
737
Earnings per common share
Basic
$
0.91
$
0.90
Diluted
$
0.91
$
0.90
Supplemental Income Statement Information
Average common shares outstanding
Basic
807.8
817.7
Diluted
810.2
822.5
Advertising
$
674
$
694
Table 2
Colgate-Palmolive Company
Condensed Consolidated Statements of Income
For the Nine Months Ended September 30, 2025 and 2024
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2025
2024
Net sales
$
15,152
$
15,156
Cost of sales
6,047
5,977
Gross profit
9,105
9,179
Gross profit margin
60.1
%
60.6
%
Selling, general and administrative expenses
5,833
5,833
Other (income) expense, net
58
141
Operating profit
3,214
3,205
Operating profit margin
21.2
%
21.1
%
Non-service related postretirement costs
116
67
Interest expense
203
226
Interest income
56
51
Income before income taxes
2,951
2,963
Provision for income taxes
685
693
Effective tax rate
23.2
%
23.4
%
Net income including noncontrolling interests
2,266
2,270
Less: Net income attributable to noncontrolling interests
97
120
Net income attributable to Colgate-Palmolive Company
$
2,169
$
2,150
Earnings per common share
Basic (1)
$
2.68
$
2.62
Diluted (1)
$
2.67
$
2.61
Supplemental Income Statement Information
Average common shares outstanding
Basic
810.0
820.1
Diluted
812.8
824.2
Advertising
$
2,020
$
2,072
Note:
(1) Basic and diluted earnings per share are computed independently for each quarter and any year-to-date period presented. As a result of changes in shares outstanding during the year and rounding, the sum of the quarters' earnings per share may not equal the earnings per share for any year-to-date period.
Table 3
Colgate-Palmolive Company
Condensed Consolidated Balance Sheets
As of September 30, 2025, December 31, 2024 and September 30, 2024
(Dollars in Millions) (Unaudited)
September 30,
December 31,
September 30,
2025
2024
2024
Cash and cash equivalents
$
1,279
$
1,096
$
1,234
Receivables, net
1,807
1,521
1,712
Inventories
2,109
1,987
2,041
Other current assets
844
713
819
Property, plant and equipment, net
4,560
4,422
4,421
Goodwill
3,702
3,272
3,389
Other intangible assets, net
1,889
1,756
1,834
Other assets
1,323
1,279
1,324
Total assets
$
17,513
$
16,046
$
16,774
Total debt
$
8,419
$
7,949
$
8,436
Other current liabilities
5,383
5,099
5,038
Other non-current liabilities
2,473
2,454
2,464
Total liabilities
16,275
15,502
15,938
Total Colgate-Palmolive Company shareholders’ equity
856
212
435
Noncontrolling interests
382
332
401
Total liabilities and equity
$
17,513
$
16,046
$
16,774
Supplemental Balance Sheet Information
Debt less cash, cash equivalents and marketable securities (1)
$
6,947
$
6,693
$
6,942
Working capital % of sales
(4.0
)%
(5.2
)%
(3.6
)%
Note:
(1) Marketable securities of $193, $160 and $260 as of September 30, 2025, December 31, 2024 and September 30, 2024, respectively, are included in Other current assets.
Table 4
Colgate-Palmolive Company
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2025 and 2024
(Dollars in Millions) (Unaudited)
2025
2024
Operating Activities
Net income including noncontrolling interests
$
2,266
$
2,270
Adjustments to reconcile Net income including noncontrolling interests to Net cash provided by operations:
Depreciation and amortization
457
457
ERISA litigation matter
65
—
Restructuring and termination benefits, net of cash
(15
)
54
Stock-based compensation expense
127
108
Deferred income taxes
8
(98
)
Cash effects of changes in:
Receivables
(180
)
(184
)
Inventories
9
(94
)
Accounts payable and other accruals
30
327
Other non-current assets and liabilities
(22
)
(2
)
Net cash provided by (used in) operations
2,745
2,838
Investing Activities
Capital expenditures
(387
)
(377
)
Purchases of marketable securities and investments
(537
)
(358
)
Proceeds from sale of marketable securities and investments
508
260
Payment for acquisition, net of cash acquired
(293
)
—
Other investing activities
(5
)
21
Net cash provided by (used in) investing activities
(714
)
(454
)
Financing Activities
Short-term borrowing (repayment) less than 90 days, net
139
337
Principal payments on debt
(655
)
(502
)
Proceeds from issuance of debt
497
2
Dividends paid
(1,300
)
(1,275
)
Purchases of treasury shares
(804
)
(1,284
)
Proceeds from exercise of stock options
83
611
Other financing activities
145
1
Net cash provided by (used in) financing activities
(1,895
)
(2,110
)
Effect of exchange rate changes on Cash and cash equivalents
47
(6
)
Net increase (decrease) in Cash and cash equivalents
183
268
Cash and cash equivalents at beginning of the period
1,096
966
Cash and cash equivalents at end of the period
$
1,279
$
1,234
Supplemental Cash Flow Information
Free cash flow before dividends (Net cash provided by operations less Capital expenditures)
Net cash provided by operations
$
2,745
$
2,838
Less: Capital expenditures
(387
)
(377
)
Free cash flow before dividends
$
2,358
$
2,461
Income taxes paid
$
712
$
762
Interest paid
$
235
$
267
Table 5
Colgate-Palmolive Company
Segment Information
For the Three and Nine Months Ended September 30, 2025 and 2024
(Dollars in Millions) (Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Net Sales
Oral, Personal and Home Care
North America
$
999
$
1,004
$
3,024
$
3,076
Latin America
1,178
1,156
3,528
3,676
Europe
801
744
2,228
2,102
Asia Pacific
714
725
2,092
2,133
Africa/Eurasia
297
278
863
827
Total Oral, Personal and Home Care
3,989
3,907
11,735
11,814
Pet Nutrition
1,142
1,126
3,417
3,342
Total Net Sales
$
5,131
$
5,033
$
15,152
$
15,156
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Operating Profit
Oral, Personal and Home Care
North America
$
190
$
206
$
580
$
633
Latin America
337
365
1,052
1,187
Europe
209
181
566
502
Asia Pacific
188
199
573
602
Africa/Eurasia
68
65
190
195
Total Oral, Personal and Home Care
992
1,016
2,961
3,119
Pet Nutrition
255
258
778
691
Corporate (1)
(189
)
(208
)
(523
)
(605
)
Total Operating Profit
$
1,059
$
1,065
$
3,214
$
3,205
Notes: Tables may not sum due to rounding.
(1) Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation charges and gains and losses on sales of non-core product lines and assets.
Corporate Operating profit (loss) for the nine months ended September 30, 2025 included charges resulting from the ERISA litigation matter of $15 and acquisition-related costs of $9.
Corporate Operating profit (loss) for the three and nine months ended September 30, 2024 included charges resulting from the 2022 Global Productivity Initiative of $15 and $77, respectively.
Table 6
Colgate-Palmolive Company
Geographic Sales Analysis Percentage Changes
For the Three Months Ended September 30, 2025 vs. 2024
(Unaudited)
COMPONENTS OF SALES CHANGE
Pricing
Coupons
Sales
Consumer &
Change
Organic
As Reported
Organic
Trade
Foreign
Region
As Reported
Sales Change
Volume (1)
Volume
Incentives
Exchange
Total Company
2.0
%
0.4
%
(1.5
)%
(1.9
)%
2.3
%
1.2
%
North America
(0.4
)%
(0.5
)%
(0.5
)%
(0.5
)%
0.1
%
0.1
%
Latin America
2.0
%
1.7
%
(1.9
)%
(1.9
)%
3.6
%
0.3
%
Europe
7.6
%
1.2
%
0.8
%
0.8
%
0.4
%
6.4
%
Asia Pacific
(1.5
)%
(1.0
)%
(3.5
)%
(3.5
)%
2.5
%
(0.5
)%
Africa/Eurasia
6.8
%
6.2
%
(1.1
)%
(1.1
)%
7.3
%
0.6
%
Total CP Products
2.1
%
0.9
%
(1.3
)%
(1.3
)%
2.1
%
1.3
%
Hill’s Pet Nutrition
1.4
%
(1.3
)%
(2.6
)%
(4.2
)%
2.9
%
1.1
%
Emerging Markets (2)
1.6
%
1.0
%
(2.6
)%
(2.6
)%
3.6
%
0.6
%
Developed Markets
2.3
%
(0.1
)%
(0.7
)%
(1.4
)%
1.3
%
1.7
%
Notes: Table may not sum due to rounding.
(1) The impact of the acquisition of the Prime100 pet food business on as reported volume was 0.4%, 1.6% and 0.7% for Total Company, Hill's Pet Nutrition and Developed Markets, respectively.
(2) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.
Table 7
Colgate-Palmolive Company
Geographic Sales Analysis Percentage Changes
For the Nine Months Ended September 30, 2025 vs. 2024
(Unaudited)
COMPONENTS OF SALES CHANGE
Pricing
Coupons
Sales
Consumer &
Change
Organic
As Reported
Organic
Trade
Foreign
Region
As Reported
Sales Change
Volume (1)
Volume
Incentives
Exchange
Total Company
—
%
1.2
%
(0.5
)%
(0.7
)%
1.9
%
(1.4
)%
North America
(1.7
)%
(1.5
)%
(1.1
)%
(1.1
)%
(0.4
)%
(0.2
)%
Latin America
(4.0
)%
3.0
%
0.5
%
0.5
%
2.6
%
(7.1
)%
Europe
6.0
%
2.8
%
1.2
%
1.2
%
1.6
%
3.2
%
Asia Pacific
(1.9
)%
(1.4
)%
(2.9
)%
(2.9
)%
1.5
%
(0.6
)%
Africa/Eurasia
4.4
%
5.2
%
0.3
%
0.3
%
4.9
%
(0.8
)%
Total CP Products
(0.7
)%
1.2
%
(0.4
)%
(0.4
)%
1.6
%
(1.8
)%
Hill’s Pet Nutrition
2.2
%
1.2
%
(0.9
)%
(1.8
)%
3.0
%
0.2
%
Emerging Markets (2)
(2.0
)%
1.8
%
(0.7
)%
(0.7
)%
2.5
%
(3.8
)%
Developed Markets
1.6
%
0.6
%
(0.4
)%
(0.8
)%
1.4
%
0.6
%
Notes: Table may not sum due to rounding.
(1) The impact of the acquisition of the Prime100 pet food business on as reported volume was 0.2%, 0.9% and 0.4% for Total Company, Hill's Pet Nutrition and Developed Markets, respectively.
(2) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.
Table 8
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Three Months Ended September 30, 2025 and 2024
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit
2025
2024
Gross profit, GAAP
$
3,049
$
3,074
2022 Global Productivity Initiative
—
9
Gross profit, non-GAAP
$
3,049
$
3,083
Basis Point
Gross Profit Margin
2025
2024
Change
Gross profit margin, GAAP
59.4
%
61.1
%
(170
)
2022 Global Productivity Initiative
—
%
0.2
%
Gross profit margin, non-GAAP
59.4
%
61.3
%
(190
)
Selling, General and Administrative Expenses
2025
2024
Selling, general and administrative expenses, GAAP
$
1,971
$
1,979
2022 Global Productivity Initiative
—
(3
)
Selling, general and administrative expenses, non-GAAP
$
1,971
$
1,976
Other (Income) Expense, Net
2025
2024
Other (income) expense, net, GAAP
$
19
$
30
2022 Global Productivity Initiative
—
(3
)
Other (income) expense, net, non-GAAP
$
19
$
27
Operating Profit
2025
2024
% Change
Operating profit, GAAP
$
1,059
$
1,065
(1
)%
2022 Global Productivity Initiative
—
15
Operating profit, non-GAAP
$
1,059
$
1,080
(2
)%
Basis Point
Operating Profit Margin
2025
2024
Change
Operating profit margin, GAAP
20.6
%
21.2
%
(60
)
2022 Global Productivity Initiative
—
%
0.3
%
Operating profit margin, non-GAAP
20.6
%
21.5
%
(90
)
Table 8
Continued
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Three Months Ended September 30, 2024
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2024
Income
Before
Income
Taxes
Provision
For
Income
Taxes (1)
Net Income
Including
Noncontrolling
Interests
Less: Income
Attributable to
Noncontrolling
Interests
Net Income
Attributable
To
Colgate-
Palmolive
Company
Effective
Income
Tax Rate (2)
Diluted
Earnings
Per Share
As Reported GAAP
$
986
$
210
$
776
$
39
$
737
21.3
%
$
0.90
2022 Global Productivity Initiative
15
2
13
—
13
(0.1
)%
0.01
Non-GAAP
$
1,001
$
212
$
789
$
39
$
750
21.2
%
$
0.91
Notes: The impact of non-GAAP adjustments may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.
(1) The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.
(2) The impact of non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income before income taxes and Provision for income taxes.
Table 9
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Nine Months Ended September 30, 2025 and 2024
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit
2025
2024
Gross profit, GAAP
$
9,105
$
9,179
2022 Global Productivity Initiative
—
19
Gross profit, non-GAAP
$
9,105
$
9,198
Gross Profit Margin
2025
2024
Change
Gross profit margin, GAAP
60.1
%
60.6
%
(50
)
2022 Global Productivity Initiative
—
%
0.1
%
Gross profit margin, non-GAAP
60.1
%
60.7
%
(60
)
Selling, General and Administrative Expenses
2025
2024
Selling, general and administrative expenses, GAAP
$
5,833
$
5,833
ERISA litigation matter
(15
)
—
2022 Global Productivity Initiative
—
(4
)
Selling, general and administrative expenses, non-GAAP
$
5,817
$
5,829
Basis Point
Selling, General and Administrative Expenses as a Percentage of Net Sales
2025
2024
Change
Selling, general and administrative expenses as a percentage of Net sales, GAAP
38.5
%
38.5
%
—
ERISA litigation matter
(0.1
)%
—
%
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP
38.4
%
38.5
%
(10
)
Other (Income) Expense, Net
2025
2024
Other (income) expense, net, GAAP
$
58
$
141
Acquisition-related costs
(9
)
—
2022 Global Productivity Initiative
—
(54
)
Other (income) expense, net, non-GAAP
$
48
$
87
Operating Profit
2025
2024
% Change
Operating profit, GAAP
$
3,214
$
3,205
—
%
ERISA litigation matter
15
—
Acquisition-related costs
9
—
2022 Global Productivity Initiative
—
77
Operating profit, non-GAAP
$
3,240
$
3,282
(1
)%
Basis Point
Operating Profit Margin
2025
2024
Change
Operating profit margin, GAAP
21.2
%
21.1
%
10
ERISA litigation matter
0.1
%
—
%
Acquisition-related costs
0.1
%
—
%
2022 Global Productivity Initiative
—
%
0.6
%
Operating profit margin, non-GAAP
21.4
%
21.7
%
(30
)
Non-Service Related Postretirement Costs
2025
2024
Non-service related postretirement costs, GAAP
$
116
$
67
ERISA litigation matter
(50
)
—
Non-service related postretirement costs, non-GAAP
$
66
$
67
Note: The impact of non-GAAP adjustments may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.
Table 9
Continued
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Nine Months Ended September 30, 2025 and 2024
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2025
Income
Before
Income Taxes
Provision
For
Income
Taxes (1)
Net Income
Including
Noncontrolling
Interests
Less: Income
Attributable to
Noncontrolling
Interests
Net Income
Attributable
To
Colgate-
Palmolive
Company
Effective
Income
Tax Rate (2)
Diluted
Earnings
Per Share
As Reported GAAP
$
2,951
$
685
$
2,266
$
97
$
2,169
23.2
%
$
2.67
ERISA litigation matter
65
12
53
—
53
—
%
0.06
Acquisition-related costs
9
2
7
—
7
—
%
0.01
Non-GAAP
$
3,027
$
702
$
2,325
$
97
$
2,228
23.2
%
$
2.74
2024
Income
Before
Income Taxes
Provision
For
Income
Taxes (1)
Net Income
Including
Noncontrolling
Interests
Less: Income
Attributable to
Noncontrolling
Interests
Net Income
Attributable
To
Colgate-
Palmolive
Company
Effective
Income
Tax Rate (2)
Diluted
Earnings
Per Share
As Reported GAAP
$
2,963
$
693
$
2,270
$
120
$
2,150
23.4
%
$
2.61
2022 Global Productivity Initiative
77
10
67
—
67
(0.3
)%
0.08
Non-GAAP
$
3,040
$
703
$
2,337
$
120
$
2,217
23.1
%
$
2.69
(1) The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.
(2) The impact of non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustments on Income before income taxes and Provision for income taxes.