Colgate-Palmolive Q4: EPS Beat, Sales Miss, Cautious FY25 Forecast And More

Colgate-Palmolive Company (NYSE: CL) reported its fourth quarter and full year 2024 results on January 31, 2025, with a mixed bag of outcomes. While earnings per share (EPS) beat expectations, net sales fell short. The company also provided a cautious outlook for fiscal year 2025, reflecting its assessment of macroeconomic headwinds and market conditions.

Fourth Quarter and Full Year Results

Colgate-Palmolive's net sales for the fourth quarter were $4,944 million, a 0.1% decrease from the prior-year quarter. Organic sales, however, grew by 4.3%, including a 0.5% negative impact from lower private label pet volume. GAAP EPS increased by 3% to $0.90, while Base Business EPS grew by 5% to $0.91.

For the full year, net sales increased by 3.3% to $20,101 million, with organic sales growth of 7.4%. GAAP EPS increased by 27% to $3.51, while Base Business EPS grew by 11% to $3.60. Net cash provided by operations was $4,107 million for the full year, up 10% versus 2023. The company returned $3.4 billion in cash to shareholders through dividends and share repurchases.



Market Leadership and Segmental Performance

Colgate-Palmolive maintained its leadership in toothpaste with a global market share of 41.4% year to date and in manual toothbrushes with a global market share of 32.2% year to date. The company's strong performance was driven by growth in every division and in all four of its categories.



Cautious FY25 Forecast

For fiscal year 2025, Colgate-Palmolive expects net sales to be roughly flat, including a mid-single-digit negative impact from foreign exchange. The company anticipates organic sales growth to be within its long-term targeted range of 3% to 5%, including the impact of the planned exit from private label pet nutrition over the course of 2025. On a GAAP basis, the company expects gross profit margin expansion, advertising investment flat to up slightly on both a dollar basis and as a percent to sales, and mid-single-digit earnings-per-share growth. On a non-GAAP (Base Business) basis, the company expects gross profit margin expansion, advertising investment flat to up slightly on both a dollar basis and as a percent to sales, and low to mid-single-digit earnings-per-share growth.

Colgate-Palmolive's cautious FY25 forecast reflects the company's assessment of macroeconomic headwinds and market conditions. The company is taking a conservative approach to its financial projections for the upcoming year, acknowledging the challenges posed by macroeconomic headwinds. However, the company's strong performance in 2024 and its commitment to innovation, digital capabilities, and brand investment position it well for continued success in 2025 and beyond.

In conclusion, Colgate-Palmolive's fourth quarter and full year 2024 results were mixed, with EPS beating expectations and net sales falling short. The company's cautious FY25 forecast reflects its assessment of macroeconomic headwinds and market conditions. Despite the challenges, Colgate-Palmolive's strong performance in 2024 and its commitment to innovation, digital capabilities, and brand investment position it well for continued success in the future.