NYSE$CL

Colgate-Palmolive · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Colgate-Palmolive experienced net sales increase and organic sales growth, with growth in every division and in all four categories.

Colgate-Palmolive reported a strong second quarter in 2023, with net sales increasing by 7.5% and organic sales growing by 8.0%. The company saw growth in every division and in all four categories. Diluted EPS was $0.60, a 17% decrease, while base business EPS increased 7% to $0.77. The company updated its full year 2023 financial guidance.

  • Net sales increased 7.5%; Organic sales increased 8.0% with growth in every division and in all four categories
  • GAAP EPS declined 17% to $0.60; Base Business EPS increased 7% to $0.77
  • GAAP Gross profit margin and Base Business Gross profit margin both increased 80 basis points to 57.8%, including a negative 70 basis point impact from private label sales resulting from the previously disclosed acquisitions of pet food businesses
  • The Company updated its financial guidance for full year 2023

Headline financials

Total Revenue

$4.82B

Previous: $4.48B+7.5%
EPS (adj)

$0.77

Previous: $0.72+6.9%
Free Cash Flow

$502M

Previous: $603M-16.7%
Net Income

$502M

Previous: $603M-16.7%
Operating Income

$974M

Previous: $884M+10.2%
Gross Profit

$2.79B

Previous: $2.55B+9.1%
Cash & Equivalents

$819M

Previous: $858M-4.5%
Total Assets

$16.2B

Previous: $15.7B+3.3%
Stock-Based Comp

$23M

Previous: $16M+43.8%

Revenue & EPS history

Colgate · Revenue · Quarterly

$4.82B

Q2 2023+7.5%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Colgate · $4.82B total across 6 segments · Q2 2023

  • OPHC Latin America
    $1.18B+15.6%
  • Pet Nutrition
    $1.06B+16.2%
  • OPHC North America
    $978M+1.3%
  • OPHC Europe
    $678M+6.1%
  • OPHC Asia Pacific
    $664M-4.6%
  • OPHC Africa/Eurasia
    $268M+4.7%

Forward guidance

The Company now expects net sales growth to be 5% to 8% including the benefit from our acquisitions of pet food businesses and a low-single-digit negative impact from foreign exchange. The Company now expects organic sales growth to be 5% to 7%. On a GAAP basis, the Company still expects gross profit margin expansion, increased advertising investment and double-digit earnings-per-share growth. On a non-GAAP (Base Business) basis, the Company still expects gross profit margin expansion and increased advertising investment and now expects earnings-per-share growth to be at the high end of mid-single-digits.

Tailwinds

  • Net sales growth to be 5% to 8%
  • Benefit from acquisitions of pet food businesses
  • Organic sales growth to be 5% to 7%
  • Gross profit margin expansion
  • Increased advertising investment

Headwinds

  • Low-single-digit negative impact from foreign exchange
  • Double-digit earnings-per-share growth on a GAAP basis
  • Earnings-per-share growth to be at the high end of mid-single-digits on a non-GAAP basis
  • Significantly higher raw and packaging material costs
  • Unfavorable mix due to private label sales resulting from the previously disclosed acquisitions of pet food businesses

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.0%

Avg return

30 days after

42%

31 / 73 earnings

Positive

+8.0%

Q4 2025

Best reaction

-9.3%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.2%+3.3%+5.7%
Q4 2025+8.0%+10.7%+16.3%
Q3 2025-2.0%+0.5%+5.1%
Q2 2025-0.4%+0.9%+0.3%
Q1 2025+1.3%-0.6%-0.1%
Q4 2024-4.6%+1.9%+1.8%
Q3 2024-4.0%-5.1%-4.8%
Q2 2024+4.5%+2.8%+8.0%
Q1 2024+1.3%+2.9%+4.5%
Q4 2023+3.4%+3.7%+6.2%
Q3 2023+1.1%+2.5%+5.8%
Q2 2023-1.1%+0.6%-4.3%
Q1 2023+3.5%+4.3%-2.2%
Q4 2022-3.5%-0.7%-3.2%
Q3 2022+0.8%-0.6%+4.8%
Q2 2022+2.4%+2.8%+0.0%
Q1 2022-7.4%-5.2%-2.9%
Q4 2021-0.3%+0.1%-5.5%
Q3 2021-1.2%+0.5%+0.2%
Q2 2021-4.8%-6.3%-7.3%
Q1 2021+1.6%+1.9%+5.0%
Q4 2020-0.8%-0.3%-5.0%
Q3 2020+4.6%+9.4%+10.7%
Q2 2020-0.4%-0.9%+3.3%
Q1 2020-1.1%-3.5%+2.9%
Q4 2019+7.9%+9.0%-2.7%
Q3 2019-4.7%-3.0%-1.1%
Q2 2019+5.1%-0.3%+0.4%
Q1 2019+3.9%+3.8%+3.7%
Q4 2018+0.9%+2.8%+7.6%
Q3 2018-9.3%-6.7%-3.2%
Q2 2018-0.7%-1.3%-0.1%
Q1 2018-2.0%-5.2%-4.3%
Q4 2017-4.6%-4.0%-9.1%
Q3 2017-2.8%-0.9%+1.1%
Q2 2017-0.3%+1.3%-1.5%
Q1 2017-2.0%-3.0%+2.9%
Q4 2016-5.4%-5.2%+7.5%
Q3 2016-0.1%-0.4%-6.6%
Q2 2016+1.6%+2.2%+1.6%
Q1 2016+2.3%
Q4 2015+1.8%
Q3 2015-2.5%
Q2 2015-1.3%
Q1 2015-1.2%
Q4 2014+3.7%
Q3 2014+1.6%
Q2 2014-3.3%
Q1 2014+2.2%
Q4 2013-0.6%
Q3 2013+0.2%
Q2 2013+3.0%
Q1 2013+0.9%
Q4 2012-0.9%
Q3 2012-2.5%
Q2 2012+4.8%
Q1 2012-1.2%
Q4 2011+0.2%
Q3 2011+0.8%
Q2 2011-1.3%
Q1 2011-0.9%
Q4 2010-0.6%
Q3 2010+2.1%
Q2 2010-5.8%
Q1 2010-1.1%
Q1 2009-1.1%
Q4 2009-0.0%
Q3 2008+1.2%
Q3 2009+1.2%
Q2 2009-4.5%
Q4 2007-4.5%
Q2 2008-4.5%
Q4 2008-4.5%

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