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- **Organic Growth**: 1.2% for the year, driven by emerging markets and premiumization. Q3 growth of 1.7% despite global category slowdown.
- **Strategic Initiatives**: AI adoption in marketing and R&D, with generative AI pilots showing early success. $200-300M restructuring to fund innovation.
- **Financial Resilience**: Non-GAAP EPS maintained at $1.08 despite 40-50bp gross margin hit. Q4 expected to improve with destocking resolution.
- **Key Risks**: Consumer uncertainty, raw material inflation, and trade destocking. Private label exit impacting 2025 growth but benefiting 2026 margins.
- **Hill's Momentum**: 2.5% organic growth ex-private label, with wet and cat segments outperforming. Prescription Diet business driving margin expansion.

**【CEO Summary Section】**
- **Global Performance**: Organic sales growth of 1.2% for the year, with Q3 growth of 1.7% despite a challenging market environment. North America saw sequential improvement, while Europe and Latin America faced headwinds from pricing and volume dynamics.
- **2030 Strategy Focus**: Accelerated innovation, AI adoption (e.g., generative AI for marketing and R&D), and supply chain efficiency to drive growth. Emphasis on premiumization and emerging markets (e.g., China, India) for long-term expansion.
- **Challenges**: Consumer uncertainty, raw material inflation (palm oil), and trade destocking. Private label exit reduced organic growth by 70 basis points.
- **Hill's Performance**: 2.5% organic growth ex-private label, driven by wet and cat segments. Prescription Diet business outperformed, offsetting category slowdown.

**【CFO Financial Commentary】**
- **Q3 Results**: GAAP net income of $420 million, Non-GAAP EPS of $1.08 (vs. $1.05 prior year). Gross margin declined 40-50 basis points due to Colgate Total formula change costs and raw material inflation.
- **Guidance**: Full-year organic growth in line with Q3 (1.2%), with Q4 expected to improve due to destocking resolution and reduced private label impact. FX tailwinds in Q4 offsetting prior year headwinds.
- **Cost Management**: SGPP program to deliver savings and fund innovation, with $200-300 million restructuring charges over three years.

**【Q&A Highlights】**
- **Latin America**: Colgate Total formula change impacted 150 basis points of organic growth, but re-launch in Brazil and Mexico shows early recovery. Pricing moderating in Andina, Central America.
- **India**: GST reduction benefiting oral care category, but urban demand sluggish. Focus on premiumization and rural penetration.
- **AI & Innovation**: AI hubs for generative content, agnostic AI for supply chain, and core innovation pipeline to stimulate demand across price tiers.
- **Pet Food**: Hill's gaining share in wet and cat segments, despite category slowdown. Private label exit to improve margins in 2026.


Colgate-Palmolive Company (CL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CL

CL fundamentals

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