Colgate-Palmolive Company (NYSE:CL) Q4 2025 Earnings call January 30, 2026 08:30 AM ET Company ParticipantsAndrea Teixeira - Executive DirectorBonnie Herzog - Managing DirectorDara Mohsenian - Managing Director in US Beverage and Household Products SectorsFilippo Falorni - Director in Equity ResearchJohn Faucher - Chief Investor Relations Officer and EVP in M&AKaumil Gajrawala - Managing Director in Beverage, Household Products, and HALO StrategyKevin Grundy - Managing DirectorLauren Lieberman - Managing Di ...

Financial Data and Key Metrics Changes - The company reported stronger-than-expected Q4 results, with organic sales growth, net sales, gross profit, base business earnings per share, and free cash flow growth in 2025 despite challenges such as lower-than-expected category growth and higher raw material inflation [3][4] - The company achieved $5 billion in sales growth as part of its 2025 strategy, transitioning to a new 2030 strategy aimed at accelerating change and driving top-tier growth [4][8] Business Line Data and Key Metrics Changes - Organic sales growth was observed in all four categories in Q4, with modest volume growth excluding the impact of the Prime100 acquisition and planned exit from the private label business [4][8] - The Hill's brand showed strong growth, with volume growth exceeding 5% on an underlying basis, despite challenges in the overall category [21][32] Market Data and Key Metrics Changes - Emerging markets, particularly Latin America, performed well with high single-digit growth in Mexico and Brazil, contributing to an overall organic growth of about 4.5% in emerging markets [58][60] - North America faced challenges, with nine categories experiencing volume declines in October and ten in November, although December showed slight improvement [48][50] Company Strategy and Development Direction - The company is focusing on five key areas: leveraging strong global brands, accelerating investment in innovation, enhancing omni-channel demand generation, investing in digital and AI capabilities, and fostering a high-impact culture [5][7][8] - The Strategic Growth and Productivity Program aims to unlock organizational changes and funding necessary to support the new strategy, with a focus on building brand capabilities and driving productivity [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing improved momentum in Q4 and stabilization of category growth rates, but acknowledged significant uncertainty in the market [9][10] - The company is cautious about the U.S. market, expecting continued challenges in the near term but believes that innovation and premiumization strategies will drive future growth [50][95] Other Important Information - The company noted that foreign exchange has been favorable recently, but historically has only been a tailwind in two of the last ten years, and will be managed flexibly in the business model [23][70] - The company is adapting its organizational structure to focus on omni-channel demand generation, aiming to enhance decision-making and responsiveness to market changes [90][91] Q&A Session Summary Question: Insights on category growth and market share positioning - Management indicated that category growth has stabilized at lower rates than historical assumptions, with expectations of gradual improvement in 2026 [18][26] Question: Performance of the Hill's brand - Despite challenges in the category, the Hill's brand experienced strong volume growth, driven by science-based innovation and improved market shares [31][32] Question: North America market challenges - Management acknowledged the sluggishness in North America, particularly in personal care, and emphasized the need for a stronger innovation pipeline and effective revenue growth management strategies [46][50] Question: Emerging markets performance - Emerging markets showed strong growth, particularly in Latin America, with a focus on executing strategic growth initiatives to capitalize on favorable category growth rates [58][60] Question: Advertising and promotional strategies - Management discussed the need for a balanced approach to advertising spend, focusing on efficiency while also investing in areas that will drive market share and category growth [41][44]

Colgate-Palmolive (CL) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.02%. A quarter ago, it was expected that this consumer products maker would post earnings of $0.89 per share when it actually produced earnings of $0.91, delivering a surprise of +2.25%.Over the last four quarte ...

4Q & Full Year 2025 EARNINGS PRESENTATION January 30, 2026 January 2026 Notice for Investor Presentation Please review the following fourth quarter and full year 2025 earnings presentation in conjunction with our fourth quarter and full year 2025 earnings press release, our fourth quarter and full year 2025 prepared management remarks and additional information regarding our non-GAAP financial measures, including GAAP to non-GAAP reconciliations, which are available in the Investor Center section of our web ...

Financial Performance - Full year net sales increased by 1.4% to $20,382 million, compared to $20,101 million in 2024[2] - GAAP EPS for the full year declined by 25% to $2.63, primarily due to impairment charges related to the skin health business[4] - Base Business EPS increased by 3% to $3.69 for the full year[2] - Fourth quarter net sales rose by 5.8% to $5,230 million, with organic sales growth of 2.2%[6] - GAAP EPS for the fourth quarter was $(0.05), a decline of 106% due to impairment charges[5] - For the full year 2025, net sales totaled $20,382 million, a slight increase from $20,101 million in 2024[32] - The company reported a net income of $2,132 million for the full year 2025, down from $2,889 million in 2024[32] - Total operating profit for the twelve months ended December 31, 2025, was $3.306 billion, compared to $4.268 billion in 2024, reflecting ongoing challenges[38] Profitability Metrics - Gross profit for Q4 2025 was $3,146 million, with a gross profit margin of 60.2%, slightly down from 60.3% in Q4 2024[30] - Full year gross profit was $12,251 million, with a gross profit margin of 60.1%, down from 60.5% in 2024[32] - Operating profit for Q4 2025 significantly decreased to $92 million, down from $1,064 million in Q4 2024, resulting in an operating profit margin of 1.8% compared to 21.5% in the previous year[30] - The operating profit margin for the three months ended December 31, 2025, was 1.8%, down from 21.5% in 2024, indicating a substantial decline in profitability[52] - Operating profit under GAAP fell by 23% from $4,268 million in 2024 to $3,306 million in 2025[58] - Non-GAAP operating profit remained relatively stable at $4,347 million in 2025 compared to $4,353 million in 2024[58] Shareholder Returns - The company returned $2.9 billion to shareholders through dividends and share repurchases in 2025[4] Future Outlook - The company expects 2026 net sales growth of 2% to 6%, with organic sales growth projected at 1% to 4%[12] - Gross profit margin is expected to expand in 2026, with double-digit earnings per share growth anticipated on a GAAP basis[12] Market Position - Colgate's global market share in toothpaste remained strong at 41.3% year to date[9] Operational Efficiency - Selling, general and administrative expenses as a percentage of net sales increased to 39.6% in 2025 from 38.3% in 2024, indicating rising operational costs[52] - Selling, general and administrative expenses as a percentage of net sales increased from 38.5% in 2024 to 38.8% in 2025[58] Taxation - The effective tax rate for Q4 2025 was 104.7%, a substantial increase from 21.6% in Q4 2024[30] - The effective tax rate for GAAP net income increased from 22.9% in 2024 to 26.1% in 2025[60] Regional Performance - North America sales decreased by 1.5% in the three months ended December 31, 2025, while Latin America saw a significant increase of 12.8%[44] - Sales in Europe increased by 9.8% for the three months ended December 31, 2025, driven by strong pricing strategies[44] Acquisitions and Costs - The acquisition of the Prime100 pet food business contributed 0.5% to the total company volume for the three months ended December 31, 2025[45] - The company reported acquisition-related costs of $9 million in 2025, with no such costs reported in 2024[58] - The restructuring program charges for 2025 were related to the Strategic Growth and Productivity Program and the 2022 Global Productivity Initiative[61] Non-GAAP Metrics - The company reported a non-GAAP net income of $1.038 billion for the three months ended December 31, 2025, a 22.9% increase from $800 million in 2024[54] - Colgate-Palmolive's GAAP gross profit for 2025 was $12,251 million, compared to $12,161 million in 2024, reflecting a slight increase[58] - The gross profit margin under GAAP decreased from 60.5% in 2024 to 60.1% in 2025, a change of -40 basis points[58] - Non-service related postretirement costs under GAAP decreased from $87 million in 2024 to $55 million in 2025[58]

Core Insights - Colgate-Palmolive reported a loss in the fourth quarter due to a significant charge related to its underperforming skin-health business, although sales increased despite challenging market conditions [1] Financial Performance - The company experienced a loss in the fourth quarter, primarily attributed to a large charge associated with its skin-health segment [1] - Sales rose during the quarter, indicating resilience in the face of a difficult operating environment [1]

Toothpaste maker Colgate-Palmolive forecast annual sales above Wall Street estimates on Friday, benefiting from steady demand for essential household staples in markets such as Latin America and Europe. ...

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Core Insights - Colgate-Palmolive Company (CL) is anticipated to report revenue growth of 3.3% year-over-year for Q4 2025, with expected revenues of $5.1 billion [1] - The earnings consensus estimate for the quarter is 91 cents per share, remaining flat compared to the previous year [2] Revenue and Earnings Expectations - The Zacks Consensus Estimate for Q4 revenues is $5.1 billion, indicating a 3.3% increase from the prior year's quarter [1] - Earnings per share (EPS) is estimated at 91 cents, unchanged from the previous year, with a slight downward adjustment in the past week [2] Earnings Prediction Model - The current model indicates a negative Earnings ESP of -0.04% and a Zacks Rank of 4 (Sell), suggesting a lower likelihood of an earnings beat this quarter [3] Business Performance Drivers - Colgate's Q4 performance is expected to benefit from strong business momentum, pricing strategies, and productivity initiatives [4] - The company's focus on innovation, premiumization, and digital transformation is projected to enhance its performance [5] Innovation and Product Strategy - Colgate's science-based innovation pipeline, including the relaunch of Colgate Total and advancements in premium oral care, is crucial for category expansion [6] - The company aims to maintain its organic sales trajectory through a resilient portfolio and balanced presence across price tiers [6] Sales Growth Projections - Sales growth for Q4 2025 is predicted at 2.8%, with organic sales growth of 1.4%, offset by a volume decline of 1.3% and pricing gains of 2.7% [7] - Regional sales growth expectations include a 3% rise in Latin America, 9.5% in Europe, and a 6.5% increase in Africa/Eurasia, while North America is expected to see a 0.3% decline [7] Margin and Cost Pressures - Colgate anticipates gross margin compression due to raw material inflation and lower fixed-cost leverage, with a predicted gross margin of 60.2% for Q4 2025 [12][13] - The company is facing challenges from persistent inflation, tariff impacts, and a volatile economic environment, which may constrain near-term earnings growth [11] Long-term Outlook - For 2025, Colgate expects net sales growth in the low single digits, with organic sales growth around 1.2%, despite a drag from exiting private-label pet food [10] - The company remains committed to achieving consistent EPS growth through strong cash flow and ongoing brand investments [10] Market Performance and Valuation - Colgate's shares have increased by 10% over the past three months, outperforming the industry average decline of 3.2% [16] - The stock trades at a forward P/E multiple of 22.21X, higher than the industry average of 18.47X, indicating a relatively pricey valuation compared to peers [17]

Core Viewpoint - Colgate-Palmolive is expected to report flat earnings of $0.91 per share for the quarter ended December 2025, with revenues projected at $5.1 billion, reflecting a 3.2% increase from the previous year [1][3]. Earnings Expectations - The earnings report is scheduled for January 30, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. - The consensus EPS estimate has been revised down by 0.35% over the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Colgate-Palmolive is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.04%, which complicates predictions of an earnings beat [12]. - The stock currently holds a Zacks Rank of 4, suggesting a less favorable outlook for an earnings surprise [12]. Historical Performance - In the last reported quarter, Colgate-Palmolive exceeded the consensus EPS estimate of $0.89 by delivering earnings of $0.91, resulting in a surprise of +2.25% [13]. - The company has successfully beaten consensus EPS estimates in the last four quarters [14]. Conclusion - Colgate-Palmolive does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered when evaluating the stock ahead of its earnings release [17].