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Colgate Announces 4th Quarter and Full Year 2024 Results


Full Year
•Delivered over $20 billion in Net sales for the first time
•Net sales increased 3.3%; Organic sales* increased 7.4%, including a 0.5% negative impact from lower private label pet volume
•GAAP EPS increased 27% to $3.51; Base Business EPS* increased 11% to $3.60
•Net cash provided by operations was $4,107 for the full year, up 10% versus 2023
•Returned $3.4 billion in cash to shareholders through dividends and share repurchases
Full Year Total Company Results (GAAP)
($ in millions except per share amounts)20242023Change
Net Sales$20,101$19,457+3.3 %
EPS (diluted)$3.51$2.77+27 %
Full Year Total Company Results (Base Business - Non-GAAP)*
($ in millions except per share amounts)20242023Change
Organic Sales Growth+7.4 %
Base Business EPS (diluted) $3.60$3.23+11 %
*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 7 - Geographic Sales Analysis Percentage Changes” and “Table 9 - Non-GAAP Reconciliations” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Fourth Quarter
•Net sales decreased 0.1%; Organic sales* increased 4.3%, including a 0.5% negative impact from lower private label pet volume
•GAAP EPS increased 3% to $0.90; Base Business EPS* increased 5% to $0.91
•GAAP Gross profit margin and Base Business Gross profit margin* both increased 70 basis points to 60.3%
•Colgate’s leadership in toothpaste continued with its global market share at 41.4% year to date


•Colgate’s leadership in manual toothbrushes continued with its global market share at 32.2% year to date

Fourth Quarter Total Company Results (GAAP)
($ in millions except per share amounts)20242023Change
Net Sales$4,944$4,950-0.1 %
EPS (diluted)$0.90$0.87+3 %
Fourth Quarter Total Company Results (Base Business - Non-GAAP)*
($ in millions except per share amounts)20242023Change
Organic Sales Growth+4.3 %
Base Business EPS (diluted) $0.91$0.87+5 %
*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 6 - Geographic Sales Analysis Percentage Changes” and “Table 8 - Non-GAAP Reconciliations” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.


New York, New York, January 31, 2025…Colgate-Palmolive Company (NYSE:CL) today reported results for fourth quarter and full year 2024. Noel Wallace, Chairman, President and Chief Executive Officer, commented on the Base Business fourth quarter and full year results, “We are pleased to have delivered another quarter and full year of strong organic sales growth along with increases in gross profit, gross profit margin, net income, earnings per share and cash flow. Our goals for 2024 were to deliver peer leading growth while funding investment for future growth and building flexibility into our P&L to counter macro headwinds. We delivered on those goals, leaving us well positioned to deliver against our guidance in 2025.

“For the full year, we grew net sales 3.3% and organic sales 7.4%, with organic sales growth in every division and in all four of our categories. This was our sixth consecutive year with organic sales growth at or above our 3% to 5% targeted range. The combination of strong sales growth and operating leverage drove strong bottom-line performance as well, with net income and earnings per share both increasing double digits versus 2023.

“Our strong margin performance allowed us to continue to invest to drive brand health and support innovation with a 15% increase in advertising spending in 2024, following a 19% increase in 2023. We have built flexibility into our income statement so we can continue to invest in scaling our capabilities in key areas like digital and data and analytics across the organization to accelerate change and build competitive advantages, while delivering bottom-line growth.



“Reaching $20 billion in net sales for the year is an exciting milestone and I’d like to thank all Colgate people globally for their hard work and dedication to achieving our goals together. The quality of our results this year and our strong growth momentum add to our confidence that we are well positioned to deliver consistent, compounded earnings per share growth in 2025 and beyond.”

Full Year 2025 Guidance
Based on current spot rates:
•The Company expects net sales to be roughly flat, including a mid-single-digit negative impact from foreign exchange.
•The Company expects 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 with 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 with 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.
Divisional Performance
The following are comments about divisional performance for fourth quarter 2024 versus the year ago period. See attached "Table 6 - Geographic Sales Analysis Percentage Changes" and "Table 5 - Segment Information" for additional information on net sales and operating profit by division.



Fourth Quarter Sales Growth By Division
(% change 4Q 2024 vs. 4Q 2023)
% of Total Company SalesNet
Sales 		Organic
Sales*
Volume		PricingFX
North America(1)
21.0%-1.0%-0.7%+1.9%-2.7%-0.3%
Latin America22.4%-7.2%+9.2%+0.9%+8.3%-16.4%
Europe(1)
13.5%+4.9%+4.5%+1.7%+2.7%+0.4%
Asia Pacific14.6%+3.7%+3.8%+5.8%-2.0%—%
Africa/Eurasia5.4%+2.8%+9.4%+11.5%-2.1%-6.6%
Hill's23.1%+2.3%+2.9%+0.8%+2.0%-0.5%
 
Total Company100.0%-0.1%+4.3%+2.5%+1.8%-4.4%
Note: Table may not sum due to rounding.
(1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of July 1, 2024. The results of the skin health business previously reported within the Europe reportable operating segment are reported with the other skin health businesses in the North America reportable operating segment. Recast historical geographic segment information can be found on the Company's website.
*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 6 - Geographic Sales Analysis Percentage Changes” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Fourth Quarter Operating Profit By Division
($ in millions)
4Q 2024% Change vs 4Q 2023% to Net SalesChange in basis points vs 4Q 2023
% to Net Sales
North America(1)
$206-11%19.9%-220
Latin America$339-8%30.6%-10
Europe(1)
$1553%23.3%-40
Asia Pacific$2114%29.1%+10
Africa/Eurasia$58-1%21.5%-80
Hill's$27519%24.1%+340
    
Total Company, As Reported$1,064-1%21.5%-20
Total Company, Base Business* $1,071—%21.7%—
(1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of July 1, 2024.
*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 8 - Non-GAAP Reconciliations” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Prepared Materials and Webcast Information
At approximately 7:00 a.m. ET today, Colgate will post its prepared materials (in PDF format)
regarding fourth quarter and full year 2024 results to the Investor Center section of its website at https://investor.colgatepalmolive.com/events-and-presentations.



At 8:30 a.m. ET today, Colgate will host a conference call regarding fourth quarter and full year 2024 results. To access this call as a webcast, please go to Colgate’s website at www.colgatepalmolive.com.

About Colgate-Palmolive
Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, we sell our products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. The Company is recognized for its leadership and innovation in promoting sustainability and community wellbeing, including its achievements in decreasing plastic waste and promoting recyclability, saving water, conserving natural resources and improving children’s oral health through the Colgate Bright Smiles, Bright Futures program, which has reached approximately 1.8 billion children and their families since 1991. For more information about Colgate’s global business and how the Company is building a future to smile about, visit www.colgatepalmolive.com. CL-E

The Company's annual meeting of stockholders is currently scheduled for Friday, May 9, 2025.

Market Share Information
Management uses market share information as a key indicator to monitor business health and performance. References to market share in this press release are based on a combination of consumption and market share data provided by third-party vendors, primarily Nielsen, and internal estimates. All market share references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company competes and purchases data (excluding Venezuela from all periods).

Market share data is subject to limitations on the availability of up-to-date information. In particular, market share data is currently not generally available for certain retail channels, such as eCommerce and certain club retailers and discounters. The Company measures year-to-date market shares from January 1 of the relevant year through the most recent period for which market share data is available, which typically reflects a lag time of one or two months. The Company believes that the third-party vendors it uses to provide data are reliable, but it has not verified the accuracy or completeness of the data or any assumptions underlying the data. In addition, market share information reported by the Company may be different from market share information reported by other companies due to differences in category definitions, the use of data from different countries, internal estimates and other factors.

Cautionary Statement on Forward-Looking Statements
This press release and the related webcast may contain forward-looking statements (as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission (SEC) in its rules, regulations and releases) that set forth anticipated results based on management’s current plans and assumptions. Such statements may relate, for example, to sales or volume growth, net selling price increases, organic sales growth, profit or profit margin levels, earnings per share levels, financial goals, the impact of foreign exchange,


the impact of any additional tariffs, the impact of the war in Ukraine, the conflict in the Middle East and tensions between China and Taiwan, cost-reduction plans, tax rates, interest rates, new product introductions, digital capabilities, commercial investment levels, acquisitions, divestitures, share repurchases or legal or tax proceedings, among other matters. These statements are made on the basis of the Company’s views and assumptions as of this time and the Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, except as required by law or by the rules and regulations of the SEC. Moreover, the Company does not, nor does any other person, assume responsibility for the accuracy and completeness of these statements. The Company cautions investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. For more information about factors that could impact the Company’s business and cause actual results to differ materially from forward-looking statements, investors should refer to the Company’s filings with the SEC (including, but not limited to, the information set forth under the captions “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent filings with the SEC). Copies of these filings may be obtained upon request from the Company’s Investor Relations Department or on the Company’s website at www.colgatepalmolive.com.


Non-GAAP Financial Measures
The following provides definitions and other information regarding the non-GAAP financial measures used in this press release and the related prepared materials and webcast, which may not be the same as or comparable to similar measures presented by other companies:
•Base Business: Base Business refers to non-GAAP measures of operating results that exclude certain items. Base Business operating results exclude, as applicable, charges related to an ERISA litigation matter, a foreign tax matter, the 2022 Global Productivity Initiative and product recall costs.
•Organic sales growth: Net sales growth excluding the impact of foreign exchange, acquisitions and divestments.
•Free cash flow before dividends: Net cash provided by operations less Capital expenditures.

This press release discusses Net sales growth (GAAP) and Organic sales growth (non-GAAP). Management believes the organic sales growth measure provides investors and analysts with useful supplemental information regarding the Company’s underlying sales trends by presenting sales growth excluding the external factor of foreign exchange as well as the impact from acquisitions and divestments. See “Geographic Sales Analysis Percentage Changes” for the three and twelve months ended December 31, 2024 versus 2023 included with this release for a comparison of Organic sales growth to Net sales growth in accordance with GAAP.

Gross profit, Gross profit margin, Selling, general and administrative expenses, Selling, general and administrative expenses as a percentage of Net sales, Other (income) expense, net, Operating profit, Operating profit margin, Non-service related postretirement costs, Effective income tax rate, Net income attributable to Colgate-Palmolive Company and Diluted earnings per common share are disclosed on both an as reported (GAAP) and Base Business (non-GAAP) basis. These non-GAAP financial measures exclude items that, either by their nature or amount, management would not expect to occur as part of the Company’s normal business on a regular basis, such as restructuring charges, charges for certain litigation and tax matters,


acquisition-related costs, gains and losses from certain divestitures and certain other unusual, non-recurring items. Investors and analysts use these financial measures in assessing the Company’s business performance, and management believes that presenting these financial measures on a non-GAAP basis provides them with useful supplemental information to enhance their understanding of the Company’s underlying business performance and trends. These non-GAAP financial measures also enhance the ability to compare period-to-period financial results. See “Non-GAAP Reconciliations” for the three and twelve months ended December 31, 2024 and 2023 included with this release for a reconciliation of these financial measures to the related GAAP measures.

The Company uses these financial measures internally in its budgeting process, to evaluate segment and overall operating performance and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company’s underlying business performance and trends, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.

As management uses free cash flow before dividends to evaluate the Company’s ability to satisfy current and future obligations, pay dividends, fund future business opportunities and repurchase stock, the Company believes that it provides useful information to investors. Free cash flow before dividends is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. See “Condensed Consolidated Statements of Cash Flows” for the twelve months ended December 31, 2024 and 2023 for a comparison of free cash flow before dividends to Net cash provided by operations as reported in accordance with GAAP.

(See attached tables for fourth quarter and full year results.)


Contacts
Investor Relations: investor_relations@colpal.com
Communications: colgate_palmolive_media_inquiry@colpal.com


Table 1
Colgate-Palmolive Company
Condensed Consolidated Statements of Income
For the Three Months Ended December 31, 2024 and 2023
(Dollars in Millions Except Per Share Amounts) (Unaudited)
20242023
Net sales$4,944 $4,950 
Cost of sales1,962 2,000 
Gross profit2,982 2,950 
Gross profit margin60.3 %59.6 %
Selling, general and administrative expenses1,895 1,803 
Other (income) expense, net23 75 
Operating profit1,064 1,072 
Operating profit margin21.5 %21.7 %
Non-service related postretirement costs20 22 
Interest expense 66 74 
Interest income16 12 
Income before income taxes994 988 
Provision for income taxes215 228 
Effective tax rate21.6 %23.1 %
Net income including noncontrolling interests779 760 
Less: Net income attributable to noncontrolling interests40 42 
Net income attributable to Colgate-Palmolive Company$739 $718 
Earnings per common share
Basic$0.91 $0.87 
Diluted$0.90 $0.87 
Supplemental Income Statement Information
Average common shares outstanding
Basic816.0 823.4 
Diluted819.7 825.1 
Advertising$648 $593 


Table 2
Colgate-Palmolive Company
Condensed Consolidated Statements of Income
For the Twelve Months Ended December 31, 2024 and 2023
(Dollars in Millions Except Per Share Amounts) (Unaudited)
20242023
Net sales$20,101 $19,457 
Cost of sales7,940 8,131 
Gross profit12,161 11,326 
Gross profit margin60.5 %58.2 %
Selling, general and administrative expenses7,729 7,151 
Other (income) expense, net164 191 
Operating profit4,268 3,984 
Operating profit margin21.2 %20.5 %
Non-service related postretirement costs87 360 
Interest expense292 287 
Interest income67 55 
Income before income taxes3,956 3,392 
Provision for income taxes907 937 
Effective tax rate22.9 %27.6 %
Net income including noncontrolling interests3,049 2,455 
Less: Net income attributable to noncontrolling interests160 155 
Net income attributable to Colgate-Palmolive Company$2,889 $2,300 
Earnings per common share
Basic(1)
$3.53 $2.78 
Diluted(1)
$3.51 $2.77 
Supplemental Income Statement Information
Average common shares outstanding
Basic819.1 827.4 
Diluted823.2 829.2 
Advertising$2,720 $2,371 
Note:
(1) Basic and diluted earnings per share are computed independently for each quarter and any year-to-date period presented. As a result of changes in shares outstanding during the year and rounding, the sum of the quarters' earnings per share may not equal the earnings per share for any year-to-date period.


Table 3
Colgate-Palmolive Company
Condensed Consolidated Balance Sheets
As of December 31, 2024 and December 31, 2023
(Dollars in Millions) (Unaudited)
20242023
Cash and cash equivalents$1,096 $966 
Receivables, net1,521 1,586 
Inventories1,987 1,934 
Other current assets713 793 
Property, plant and equipment, net4,422 4,582 
Goodwill3,272 3,410 
Other intangible assets, net1,756 1,887 
Other assets1,279 1,235 
  Total assets$16,046 $16,393 
Total debt7,949 8,549 
Other current liabilities5,099 4,411 
Other non-current liabilities2,454 2,476 
  Total liabilities15,502 15,436 
Total Colgate-Palmolive Company shareholders’ equity212 609 
Noncontrolling interests332 348 
  Total liabilities and equity$16,046 $16,393 
Supplemental Balance Sheet Information
Debt less cash, cash equivalents and marketable securities(1)
$6,693 $7,404 
Working capital % of sales(5.2)%(1.4)%

Note:
(1) Marketable securities of $160 and $179 as of December 31, 2024 and 2023, respectively, are included in Other current assets.




Table 4
Colgate-Palmolive Company
Condensed Consolidated Statements of Cash Flows
For the Twelve Months Ended December 31, 2024 and 2023
(Dollars in Millions) (Unaudited)
20242023
Operating Activities
  Net income including noncontrolling interests$3,049 $2,455 
  Adjustments to reconcile Net income including noncontrolling interests to Net cash provided by operations:
        Depreciation and amortization605 567 
        ERISA litigation matter— 267 
        Restructuring and termination benefits, net of cash51 (23)
        Stock-based compensation expense135 122 
        Deferred income taxes(77)(98)
        Cash effects of changes in:
              Receivables(56)(37)
              Inventories(100)194 
              Accounts payable and other accruals516 309 
              Other non-current assets and liabilities(16)(11)
                 Net cash provided by operations4,107 3,745 
Investing Activities
   Capital expenditures(561)(705)
   Purchases of marketable securities and investments(574)(506)
   Proceeds from sale of marketable securities and investments564 502 
   Other investing activities37 (33)
                 Net cash used in investing activities(534)(742)
Financing Activities
   Short-term borrowing (repayment) less than 90 days, net93 (906)
   Principal payments on debt(503)(903)
   Proceeds from issuance of debt2 1,495 
   Dividends paid(1,789)(1,749)
   Purchases of treasury shares(1,739)(1,128)
   Proceeds from exercise of stock options638 380 
   Other financing activities(91)18 
                 Net cash used in financing activities(3,389)(2,793)
Effect of exchange rate changes on Cash and cash equivalents(54)(19)
Net increase (decrease) in Cash and cash equivalents130 191 
Cash and cash equivalents at beginning of the period966 775 
Cash and cash equivalents at end of the period$1,096 $966 
Supplemental Cash Flow Information
Free cash flow before dividends (Net cash provided by operations less Capital expenditures)
   Net cash provided by operations4,107 3,745 
   Less: Capital expenditures(561)(705)
Free cash flow before dividends$3,546 $3,040 
Income taxes paid$933 $937 
Interest paid$302 $280 


Table 5
Colgate-Palmolive Company
Segment Information
For the Three and Twelve Months Ended December 31, 2024 and 2023
(Dollars in Millions) (Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Net Sales
Oral, Personal and Home Care
North America(1)
$1,036 $1,047 $4,113 $4,091 
Latin America1,106 1,192 4,782 4,640 
Europe(1)
668 637 2,770 2,571 
Asia Pacific724 698 2,858 2,782 
Africa/Eurasia269 262 1,095 1,083 
Total Oral, Personal and Home Care3,804 3,836 15,618 15,167 
Pet Nutrition1,140 1,114 4,483 4,290 
Total Net Sales$4,944 $4,950 $20,101 $19,457 
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Operating Profit
Oral, Personal and Home Care
North America(1)
$206 $231 $839 $871 
Latin America339 366 1,526 1,417 
Europe(1)
155 151 658 573 
Asia Pacific211 203 812 767 
Africa/Eurasia58 59 253 254 
Total Oral, Personal and Home Care969 1,010 4,088 3,882 
Pet Nutrition275 231 965 806 
Corporate(2)
(179)(169)(784)(704)
Total Operating Profit$1,064 $1,072 $4,268 $3,984 

Notes: Tables may not sum due to rounding.

(1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of July 1, 2024.
(2) Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation charges and gains and losses on sales of non-core product lines and assets.

Corporate Operating profit (loss) for the three months ended December 31, 2024 included charges resulting from the 2022 Global Productivity Initiative of $7.

Corporate Operating profit (loss) for the three months ended December 31, 2023 included charges resulting from the 2022 Global Productivity Initiative of $2.

Corporate Operating profit (loss) for the twelve months ended December 31, 2024 included charges resulting from the 2022 Global Productivity Initiative of $85.

Corporate Operating profit (loss) for the twelve months ended December 31, 2023 included charges resulting from the 2022 Global Productivity Initiative of $27 and product recall costs of $25.


Table 6
Colgate-Palmolive Company
Geographic Sales Analysis Percentage Changes
For the Three Months Ended December 31, 2024 vs. 2023
(Unaudited)
COMPONENTS OF SALES CHANGE
Pricing
Coupons
SalesConsumer &
ChangeOrganicTradeForeign
RegionAs ReportedSales ChangeVolumeIncentivesExchange
Total Company(0.1)%4.3%2.5%1.8%(4.4)%
North America(1)
(1.0)%(0.7)%1.9%(2.7)%(0.3)%
Latin America (7.2)%9.2%0.9%8.3%(16.4)%
Europe(1)
4.9%4.5%1.7%2.7%0.4%
Asia Pacific 3.7%3.8%5.8%(2.0)%—%
Africa/Eurasia2.8%9.4%11.5%(2.1)%(6.6)%
Total CP Products(0.8)%4.7%2.9%1.8%(5.5)%
Hill’s2.3%2.9%0.8%2.0%(0.5)%
Emerging Markets(2)
(2.2)%7.5%3.7%3.8%(9.7)%
Developed Markets1.6%1.7%1.5%0.3%(0.2)%

Notes: Table may not sum due to rounding.

(1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of July 1, 2024.
(2) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.









Table 7
Colgate-Palmolive Company
Geographic Sales Analysis Percentage Changes
For the Twelve Months Ended December 31, 2024 vs. 2023
(Unaudited)
COMPONENTS OF SALES CHANGE
Pricing
Coupons
SalesConsumer &
ChangeOrganicTradeForeign
RegionAs ReportedSales ChangeVolumeIncentivesExchange
Total Company3.3%7.4%3.1%4.4%(4.1)%
North America(1)
0.5%0.7%2.6%(1.9)%(0.1)%
Latin America3.1%16.8%3.9%12.9%(13.7)%
Europe(1)
7.7%6.7%4.1%2.5%1.1%
Asia Pacific2.7%4.0%3.1%1.0%(1.3)%
Africa/Eurasia1.2%13.3%7.6%5.7%(12.1)%
Total CP Products3.0%8.1%3.7%4.4%(5.2)%
Hill’s4.5%4.9%0.8%4.1%(0.4)%
Emerging Markets(2)
3.0%12.2%4.0%8.2%(9.2)%
Developed Markets3.5%3.6%2.3%1.3%—%

Notes: Table may not sum due to rounding.

(1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of July 1, 2024.
(2) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.


Table 8
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Three Months Ended December 31, 2024 and 2023
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit20242023
Gross profit, GAAP$2,982 $2,950 
2022 Global Productivity Initiative1 — 
Gross profit, non-GAAP$2,983 $2,950 
Selling, General and Administrative Expenses20242023
Selling, general and administrative expenses, GAAP$1,895 $1,803 
2022 Global Productivity Initiative(1)— 
Selling, general and administrative expenses, non-GAAP$1,894 $1,803 
Other (Income) Expense, Net20242023
Other (income) expense, net, GAAP$23 $75 
2022 Global Productivity Initiative(5)(2)
Other (income) expense, net, non-GAAP$18 $73 
Operating Profit20242023% Change
Operating profit, GAAP$1,064 $1,072 (1)%
2022 Global Productivity Initiative7 2 
Operating profit, non-GAAP$1,071 $1,074 — %
Basis Point
Operating Profit Margin20242023Change
Operating profit margin, GAAP21.5 %21.7 %(20)
2022 Global Productivity Initiative0.2 %— %
Operating profit margin, non-GAAP21.7 %21.7 %— 
Non-Service Related Post Retirement Cost20242023
Non-service related post retirement cost, GAAP$20 $22 
2022 Global Productivity Initiative— (1)
Non-service post retirement cost, non-GAAP$20 $21 


Table 8
Continued
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Three Months Ended December 31, 2024 vs. 2023
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2024
Income Before
Income Taxes
Provision For Income Taxes(1)
Net Income
Including
Noncontrolling
Interests		Net Income
Attributable To
Colgate-Palmolive
Company
Effective Income
Tax Rate(2)
Diluted Earnings
Per Share
As Reported GAAP$994 $215 $779 $739 21.6 %$0.90 
2022 Global Productivity Initiative7 1 6 6 — %0.01 
Non-GAAP$1,001 $216 $785 $745 21.6 %$0.91 
2023
Income Before
Income Taxes
Provision For Income Taxes(1)
Net Income
Including
Noncontrolling
Interests		Net Income
Attributable To
Colgate-Palmolive
Company
Effective Income
Tax Rate(2)
Diluted Earnings
Per Share
As Reported GAAP$988 $228 $760 $718 23.1 %$0.87 
2022 Global Productivity Initiative3 1 2 2 — %— 
Non-GAAP$991 $229 $762 $720 23.1 %$0.87 

The impact of non-GAAP adjustments may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

Notes:
(1) The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

(2) The impact of non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income before income taxes and Provision for income taxes.





Table 9
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Twelve Months Ended December 31, 2024 vs. 2023
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit20242023
Gross profit, GAAP$12,161 $11,326 
2022 Global Productivity Initiative20 1 
Gross profit, non-GAAP$12,181 $11,327 
Basis Point
Gross Profit Margin20242023Change
Gross profit margin, GAAP60.5 %58.2 %230 
2022 Global Productivity Initiative0.1 %— %
Gross profit margin, non-GAAP60.6 %58.2 %240 
Selling, General and Administrative Expenses20242023
Selling, general and administrative expenses, GAAP$7,729 $7,151 
2022 Global Productivity Initiative(6)(2)
Selling, general and administrative expenses, non-GAAP$7,723 $7,149 
Basis Point
Selling, General and Administrative Expenses as a Percentage of Net Sales20242023Change
Selling, general and administrative expenses as a percentage of Net sales, GAAP38.5 %36.8 %170 
2022 Global Productive Initiative(0.1)%(0.1)%
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP38.4 %36.7 %170 
Other (Income) Expense, Net20242023
Other (income) expense, net, GAAP$164 $191 
2022 Global Productivity Initiative(59)(24)
Product recall costs— (25)
Other (income) expense, net, non-GAAP$105 $142 
Operating Profit20242023% Change
Operating profit, GAAP$4,268 $3,984 7 %
2022 Global Productivity Initiative85 27 
Product recall costs— 25 
Operating profit, non-GAAP$4,353 $4,036 8 %
Basis Point
Operating Profit Margin20242023Change
Operating profit margin, GAAP21.2 %20.5 %70 
2022 Global Productivity Initiative0.5 %0.1 %
Product recall costs— %0.1 %
Operating profit margin, non-GAAP21.7 %20.7 %100 
Non-Service Related Post Retirement Cost20242023
Non-service related post retirement cost, GAAP$87 $360 
ERISA litigation matter— (267)
2022 Global Productivity Initiative— (5)
Non-service post retirement cost, non-GAAP$87 $88 
Table 9
Continued
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Twelve Months Ended December 31, 2024 vs. 2023
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2024
Income Before
Income Taxes
Provision For Income Taxes(1)
Net Income
Including
Noncontrolling
Interests		Less: Income Attributable to Noncontrolling InterestsNet Income
Attributable To
Colgate-Palmolive
Company
Effective Income
Tax Rate(2)
Diluted Earnings
Per Share
As Reported GAAP$3,956 $907 $3,049 $160 $2,889 22.9 %$3.51 
2022 Global Productivity Initiative85 12 73 — 73 (0.2)%0.09 
Non-GAAP$4,041 $919 $3,122 $160 $2,962 22.7 %$3.60 
2023
Income Before
Income Taxes
Provision For Income Taxes(1)
Net Income
Including
Noncontrolling
Interests		Less: Income Attributable to Noncontrolling InterestsNet Income
Attributable To
Colgate-Palmolive
Company
Effective Income
Tax Rate(2)
Diluted Earnings
Per Share
As Reported GAAP$3,392 $937 $2,455 $155 $2,300 27.6 %$2.77 
ERISA litigation matter267 55 212 — 212 (0.5)%0.26 
Foreign tax matter— (126)126 — 126 (3.4)%0.15 
2022 Global Productivity Initiative32 6 26 1 25 (0.1)%0.03 
Product recall costs25 6 19 — 19 — %0.02 
Non-GAAP$3,716 $878 $2,838 $156 $2,682 23.6 %$3.23 

The impact of non-GAAP adjustments may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

Notes:
(1) The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

(2) The impact of non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income before income taxes and Provision for income taxes.