Colgate-Palmolive's Q4 2024: Navigating FX Headwinds, Hill's Performance, and Market Share Dynamics

These are the key contradictions discussed in Colgate-Palmolive's latest 2024Q4 earnings call, specifically including: Impact of FX Headwinds and Pricing Strategy, Performance of Hill's Business, Gross Margin Expectations, and Market Share Momentum in North America:



Revenue and Organic Growth:
- Colgate-Palmolive Company reported net sales of $20 billion in 2024, one year ahead of their strategic plan ambition.
- This was driven by high-single-digit organic growth of 4.3% in Q4 and high-single-digit growth in 2024, with balanced growth in both volume and price.

Innovation and Brand Health:
- Colgate's innovation pipeline, including the Colgate Total re-launch, contributed to organic sales growth by 45% from 2021 to 2024.
- The company increased advertising spending by 15%, focusing on brand health and market share growth through innovation-driven category growth.

Gross Margin Expansion:
- Colgate achieved a gross margin growth of 70 basis points in Q4, with significant foreign exchange headwinds.
- The expansion was driven by strong productivity and pricing, despite meaningful foreign exchange headwinds impacting Latin America.

Profitability and Cash Flow:
- Colgate delivered double-digit earnings per share growth ahead of initial guidance, with record operating cash flow and free cash flow.
- This was attributed to strong productivity, compensation, and capabilities management, despite significant foreign exchange headwinds.