Colgate-Palmolive(US:CL)2025-10-31 11:57Financial Performance - Net sales for Q3 2025 increased by 2.0% to $5,131 million compared to $5,033 million in Q3 2024[2] - GAAP EPS rose by 1% to $0.91, while Base Business EPS remained flat at $0.91[3] - Organic sales growth was 0.4%, impacted by a 0.8% decline from exiting the private label pet sales business[3] - Total operating profit for Q3 2025 was $1,059 million, a decrease of 1% compared to Q3 2024[11] - Net income attributable to Colgate-Palmolive Company for Q3 2025 was $735 million, compared to $737 million in Q3 2024[25] - Free cash flow before dividends for the nine months ended September 30, 2025, was $2,358 million, down from $2,461 million in the same period of 2024[31] - Reported GAAP net income for 2025 was $2,951 million, with a diluted earnings per share of $2.67 and an effective tax rate of 23.2%[53] - Non-GAAP net income for 2025 was $3,027 million, with a diluted earnings per share of $2.74, maintaining the same effective tax rate of 23.2%[53] - Reported GAAP net income for 2024 was $2,963 million, with a diluted earnings per share of $2.61 and an effective tax rate of 23.4%[53] - Non-GAAP net income for 2024 was $3,040 million, with a diluted earnings per share of $2.69, reflecting a slight decrease in effective tax rate to 23.1%[53] Profitability Metrics - The gross profit margin decreased by 170 basis points to 59.4% on a GAAP basis[3] - Gross profit margin decreased to 59.4% in Q3 2025 from 61.1% in Q3 2024[25] - Operating profit for Q3 2025 was $1,059 million, slightly down from $1,065 million in Q3 2024, resulting in an operating profit margin of 20.6%[25] - Gross profit for Q3 2025 was $3,049 million, down from $3,074 million in Q3 2024, reflecting a gross profit margin decrease from 61.1% to 59.4%[46] - For the nine months ended September 30, 2025, gross profit was $9,105 million, compared to $9,179 million in the same period of 2024, with a gross profit margin of 60.1%[51] Sales Performance by Region - North America experienced a net sales decline of 0.4%, while Europe saw an increase of 7.6%[9] - North America experienced a sales decline of 0.4%, with organic sales down 0.5% and volume also down 0.5%[38] - Europe showed strong performance with a sales increase of 7.6%, organic sales growth of 1.2%, and volume growth of 0.8%[38] - Africa/Eurasia reported a sales increase of 6.8%, with organic sales growth of 6.2% and volume decline of 1.1%[38] - Emerging Markets reported a sales increase of 1.6%, with organic sales growth of 1.0% despite a volume decline of 2.6%[38] Strategic Initiatives - The company is implementing a new 2030 strategy aimed at accelerating growth and enhancing innovation capabilities[5] - The Strategic Growth and Productivity Program is designed to support organizational structure and achieve consistent earnings per share growth over the long term[5] - The acquisition of the Prime100 pet food business positively impacted reported volume by 0.4% for Total Company[39] Expenses and Costs - Advertising expenses for Q3 2025 were $674 million, down from $694 million in Q3 2024[25] - Selling, general and administrative expenses for Q3 2025 were $1,971 million, slightly down from $1,979 million in Q3 2024[46] - The company incurred $65 million in ERISA litigation costs, which did not affect the diluted earnings per share[53] - Acquisition-related costs amounted to $9 million, contributing minimally to the overall financial performance[53] Taxation - The effective tax rate for Q3 2025 was 22.8%, up from 21.3% in Q3 2024[25] - The effective tax rate for the company was calculated based on applicable tax laws and statutory rates in relevant jurisdictions[54] - The impact of non-GAAP items on the effective tax rate reflects the difference calculated with and without these adjustments[54]