Core Insights - Colgate-Palmolive Company has signed an agreement to acquire Care TopCo Pty Ltd, owner of the Australian pet food brand Prime100, as part of its expansion strategy into the fresh pet food market [1][2] - The acquisition aims to enhance Hill's Pet Nutrition division by complementing its existing specialty pet food products and strengthening its market presence in Australia [1][4] - The deal is expected to be completed in the second quarter of 2025, pending regulatory approval [4] Strategic Expansion - The acquisition aligns with Colgate's strategy of investing in high-growth adjacent categories and reinforces its veterinarian-endorsed pet food portfolio [2][5] - Prime100 is recognized as a premium brand in fresh pet food, which is expected to provide Hill's with opportunities for expanded distribution and increased brand awareness [2][5] - The acquisition will be funded through a mix of debt and cash, and while it is not expected to significantly impact earnings in 2025, it demonstrates a commitment to long-term growth in the pet nutrition sector [3][6] Market Position and Future Prospects - Prime100 has been a leading brand in fresh pet food since 2014, offering products that are both refrigerated and shelf-stable, backed by scientific research and veterinary recommendations [4][6] - The acquisition will provide Hill's with valuable expertise in fresh pet food manufacturing and distribution, which is crucial as the industry shifts towards fresher, less processed options [7] - Colgate continues to execute its strategy of delivering core and premium innovations while increasing advertising investments to strengthen brand presence [8][9]

Sales Performance - In 2024, Oral, Personal, and Home Care products accounted for 43%, 18%, and 17% of total worldwide net sales, respectively[15]. - Pet Nutrition products represented 22% of total worldwide net sales in 2024[16]. - Sales to Walmart, Inc. and its affiliates constituted approximately 11% of total net sales in 2024[19]. Employee and Operational Statistics - As of December 31, 2024, approximately 34,000 employees were based in over 100 countries, with 80% located outside the U.S.[28]. Sustainability Initiatives - By the end of 2024, approximately 75% of toothpaste SKUs globally and 95% in North America had transitioned to recyclable tubes[37]. - The company aims to achieve 100% renewable electricity by 2030 as part of its Net Zero 2040 emissions targets[38]. - As of December 31, 2024, 44 sites across six continents achieved TRUE certification for zero waste[39]. - The company has signed long-term virtual power purchase agreements in the U.S. and Europe to support renewable energy goals[38]. - The company is committed to reducing new (virgin) plastic by one-third compared to 2019 levels[37]. Community Engagement - Since 1991, the Colgate Bright Smiles, Bright Futures initiative has reached approximately 1.8 billion children and families with oral health education[40]. Executive Leadership - The executive officers include Noel Wallace as Chairman and CEO, and Stanley J. Sutula III as CFO, who joined in 2020 from Pitney Bowes Inc.[44][45]. - There are no family relationships among the executive officers, and their election was not influenced by any arrangements or understandings with other individuals[46]. Risk Management - The company manages various market risks, including foreign currency, interest rate, commodity price, and credit risk exposure[299]. Transparency and Compliance - The company provides free access to its Annual Reports, Quarterly Reports, and other filings on its website, ensuring transparency and compliance with SEC regulations[47].

Core Viewpoint - Colgate-Palmolive's Q4 results showed a revenue miss but earnings slightly exceeded expectations, leading to a stock price decline due to a disappointing 2025 outlook [1][6]. Financial Performance - Q4 revenue was reported at $4.94 billion, missing the consensus estimate of $4.99 billion, while adjusted earnings were $0.91 per share, slightly above the expected $0.89 [1]. - The company's revenue reflected a 0.1% decline on a reported basis but a 4.3% growth on an organic basis, with a 2.5% rise in volumes and 1.8% pricing gains, offset by 4.4% forex headwinds [3]. - Gross margin expanded by 70 basis points year-over-year to 60.3%, contributing to a 5% year-over-year growth in adjusted earnings [4]. Segment Performance - Revenue was derived from two segments: Oral, Personal, & Home Care (78% of total sales) and Hill's Pet Nutrition (22% of total sales) [3]. - Latin American sales were significantly impacted by currency fluctuations, with FX accounting for a -16.4% contribution, despite a 9.2% organic sales growth in the region [5]. Stock Performance - Colgate-Palmolive stock has returned 12% since the beginning of 2024, underperforming the S&P 500, which is up 27% [2]. - The stock has shown inconsistent performance over the past four years, with annual returns of 2% in 2021, -5% in 2022, 4% in 2023, and 17% in 2024 [6]. Future Outlook - The company expects organic sales growth between 3% and 5% and low to mid-single-digit growth in adjusted earnings for 2025 [4]. - At a current trading level of $87, the stock is valued at under 24 times trailing earnings of $3.60 per share, which is lower than its five-year average P/E ratio of 26 times, suggesting potential for growth despite ongoing foreign exchange pressures [8].

Core Insights - Colgate-Palmolive's stock declined by 4.6% following a fourth-quarter earnings report that missed revenue expectations and provided a weak outlook [1] Revenue Performance - Revenue growth decelerated due to the expiration of previous price hikes, with organic sales increasing by 4.3% but overall revenue decreasing by 0.1% to $4.94 billion, falling short of the consensus estimate of $4.99 billion [2] - The strong dollar negatively impacted revenue, as the company generates a significant portion of its income from international markets [2] Sales and Market Position - Volume sales increased by 2.5% across all regions, while overall pricing rose by 1.8% [3] - Colgate-Palmolive maintained a leading position in the global toothpaste market with a 41.4% share and 32.2% in manual toothbrushes [3] Profitability and Earnings - Base business earnings per share improved from $0.87 to $0.91, exceeding expectations of $0.89 [3] - The gross margin increased by 70 basis points to 60.3%, indicating operational strength [3] Future Outlook - The company anticipates flat revenue for fiscal 2025, citing a mid-single-digit negative impact from currency exchange rates [4] - Organic sales are projected to align with long-term targets of 3% to 5%, alongside expectations for gross profit margin expansion and low- to mid-single-digit adjusted earnings-per-share growth [4] Market Reaction - Despite disappointing revenue figures, the sell-off in stock could present a buying opportunity for income investors, considering the challenges posed by currency fluctuations [5]

Core Viewpoint - Goldman Sachs analyst Bonnie Herzog maintains a Buy rating on Colgate-Palmolive Co (CL) with a price target of $106, despite mixed fourth-quarter results [1] Financial Performance - CL reported fourth-quarter earnings per share (EPS) of $0.91, exceeding expectations of $0.88/$0.89 [1] - Organic sales growth for the fourth quarter was 4.3%, which was below predictions, affected by a 50 basis point decline from lower private label volumes in Pet Nutrition [1][2] - The lower tax rate of 21.6% contributed a $0.04 boost to EPS, aiding in the small EPS beat for the quarter [3] Segment Performance - Hill's Pet Nutrition faced challenges in Europe, resulting in a miss in segment growth [2] - North America's organic sales declined by 0.7%, while Europe and APAC saw low-to-mid single-digit growth; Latin America and Africa/Eurasia experienced high single-digit increases [2] Future Guidance - Management provided initial FY25 guidance, which aligns with expectations, but foreign exchange headwinds are anticipated to impact net sales and possibly EPS [3] - The company's organic sales growth forecast of 3%-5% is consistent with its long-term target, factoring in the planned exit from private label pet nutrition in 2025 [4] Market Position - CL is considered a top-tier company in the HPC coverage, consistently outperforming and raising its FY24 outlook despite challenging market conditions [5] - The analyst expects a more balanced environment in FY25 with slower price growth and improved volume/mix trends [5] Risks and Challenges - Foreign exchange remains a potential risk, likely affecting gross margins and dollar EPS growth [6] - Despite weaker-than-expected organic sales growth, the company is expected to maintain healthy revenue growth driven by favorable market trends and market share expansion [6]

Core Insights - Colgate-Palmolive Company reported a decline in net sales for Q4 2024, missing the Zacks Consensus Estimate, while earnings per share (EPS) improved and exceeded expectations [1][2][3] Financial Performance - Net sales were $4,944 million, down 0.1% from $4,950 million in the previous year, and missed the consensus estimate of $4,987 million [3] - On an organic basis, sales grew by 4.3%, driven by a 2.5% increase in volume and a 1.8% improvement in pricing [4] - Gross profit increased to $2,982 million from $2,950 million year-over-year, with a gross profit margin expansion of 70 basis points to 60.3% [6] - Operating profit was $1,064 million, a slight decrease from $1,072 million in the prior year, with an operating profit margin contraction of 20 basis points to 21.5% [7] Market Position - Colgate maintained a leading position in the toothpaste market with a 41.4% global market share and a 32.2% share in the manual toothbrush market [5] Regional Performance - North America saw a 1% decline in net sales, while Latin America experienced a 7.2% decline due to unfavorable currency impacts, despite organic sales growth of 9.2% [8] - Europe’s net sales increased by 4.9%, driven by volume and pricing gains [9] - The Asia Pacific segment improved by 3.7% year-over-year, with a notable 5.8% increase in volume [10] - Africa/Eurasia's net sales rose by 2.8%, supported by an 11.5% increase in volume [10] - Hill's Pet Nutrition's net sales improved by 2.3% on a reported basis [11] Cash Flow and Shareholder Returns - The company ended Q4 2024 with cash and cash equivalents of $1,096 million and total debt of $7,949 million [12] - Net cash provided by operating activities was $4,107 million for the year, with $3.4 billion returned to shareholders through dividends and share repurchases [12] 2025 Outlook - Colgate expects flat net sales in 2025, with organic sales growth projected between 3% to 5% [14] - The company anticipates gross profit margin expansion and mid-single-digit growth in Base Business EPS for 2025 [15][16]

Group 1 - Colgate-Palmolive (CL) shares fell 5% after missing revenue forecasts and providing weak guidance due to foreign exchange impacts [1][5] - The company reported a revenue decline of 0.1% to $4.94 billion, missing the anticipated $4.98 billion [1][5] - Adjusted earnings per share (EPS) of $0.91 exceeded forecasts [1] Group 2 - Foreign exchange rates negatively impacted revenue by 4.4%, with Latin America experiencing a sales slump of 7.2% [2] - Sales in North America decreased by 1.0%, while Europe, Asia-Pacific, and Africa/Eurasia saw increases of 4.9%, 3.7%, and 2.8% respectively [2] - Sales at Hill's, which represents the largest percentage of total revenue, rose by 2.3% [2] Group 3 - CEO Noel Wallace stated that the company met its goals for the year, focusing on peer-leading growth and future investment [3] - For 2025, Colgate expects revenue to be "roughly flat" from 2024's $20.1 billion, anticipating a mid-single-digit negative impact from foreign exchange [3] - Visible Alpha estimates for 2025 revenue were $20.3 billion [3] Group 4 - Despite the recent drop, Colgate-Palmolive shares remain slightly higher over the past year [4]

Group 1 - The article emphasizes a dividend-focused value investment strategy that prioritizes capital preservation and steady income growth [1] - The author discusses a diversified dividend stock portfolio that includes high-quality value stocks with meaningful growth potential and long-term safety [1] Group 2 - There are no current stock or derivative positions in any mentioned companies, and no plans to initiate such positions in the near term [2] - The author may consider initiating a long position in Colgate-Palmolive Company through the sale of put options within the next 72 hours [3]

Core Insights - Colgate-Palmolive reported revenue of $4.94 billion for Q4 2024, a slight year-over-year decline of 0.1%, with an EPS of $0.91 compared to $0.87 a year ago, indicating a positive EPS surprise of +2.25% against the consensus estimate [1][2] Revenue Performance - North America net sales for Oral, Personal and Home Care reached $1.04 billion, exceeding the average estimate of $1.01 billion, reflecting a year-over-year increase of +3.7% [4] - Latin America net sales for Oral, Personal and Home Care were $1.11 billion, matching the average estimate but showing a decline of -7.2% year-over-year [4] - Africa/Eurasia net sales for Oral, Personal and Home Care were $269 million, surpassing the average estimate of $261.71 million, with a year-over-year increase of +2.7% [4] - Europe net sales for Oral, Personal and Home Care totaled $668 million, below the average estimate of $687.89 million, representing a year-over-year decline of -2.5% [4] - Asia Pacific net sales for Oral, Personal and Home Care were $724 million, closely aligning with the average estimate, showing a year-over-year increase of +3.7% [4] - Pet Nutrition net sales amounted to $1.14 billion, slightly below the average estimate of $1.17 billion, with a year-over-year increase of +2.3% [4] - Total Oral, Personal and Home Care net sales were $3.80 billion, matching the average estimate but reflecting a year-over-year decline of -0.8% [4] Profitability Metrics - Total operating profit for Oral, Personal and Home Care was $969 million, below the average estimate of $1.03 billion [4] - Corporate operating profit was reported at -$179 million, slightly better than the average estimate of -$184.13 million [4] - Pet Nutrition operating profit reached $275 million, exceeding the average estimate of $256.82 million [4] Stock Performance - Colgate-Palmolive shares returned +0.4% over the past month, underperforming the Zacks S&P 500 composite's +2.9% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

Core Viewpoint - Colgate-Palmolive reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and showing an increase from $0.87 per share a year ago, indicating a positive earnings surprise of 2.25% [1][2] Financial Performance - The company achieved revenues of $4.94 billion for the quarter ended December 2024, which was below the Zacks Consensus Estimate by 0.86% and slightly lower than the $4.95 billion reported a year ago [2] - Over the last four quarters, Colgate-Palmolive has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Colgate-Palmolive shares have remained flat since the beginning of the year, contrasting with the S&P 500's gain of 3.2% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.90, with expected revenues of $5.04 billion, and for the current fiscal year, the estimate is $3.76 on revenues of $20.37 billion [7] - The estimate revisions trend for Colgate-Palmolive is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Consumer Products - Staples industry, to which Colgate-Palmolive belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [8]