Colgate-Palmolive Company (CL) Q1 2025 Earnings
How Did CL Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.74%.
Did CL Beat Earnings? Q1 2025 Results
Yes. Colgate-Palmolive Company reported Q1 2025 earnings of $0.91 a share on Apr 25, 2025, beating the $0.86 consensus estimate by 6.1%. Revenue was $4.9B against a $4.9B estimate.
Colgate-Palmolive delivered a stronger-than-expected first quarter, posting non-GAAP earnings of $0.91 per share against a consensus estimate of $0.86, a beat of 6.11%, even as reported revenue slipped 3.0% year over year to $4.91 billion amid punishing foreign exchange headwinds that alone carved out a 4.4% drag on net sales. The key driver behind the earnings resilience was gross profit margin expansion of 80 basis points to 60.8%, which the company achieved alongside a 30-basis-point increase in advertising investment to 13.6% of net sales, signaling that Colgate is leaning into brand building rather than pulling back. Revenue edged past the $4.86 billion consensus by 0.98%, supported by 1.4% organic sales growth fueled largely by pricing. Hill's Pet Nutrition was a notable bright spot, with operating profit surging 30% to $258.00 million and a 23.1% margin. Looking ahead, with rivals also navigating tariff-driven cost pressures, Colgate updated its full-year 2025 outlook to reflect tariff impacts, now guiding for organic sales growth of 2% to 4% and earnings per share growth of low single digits, a step down from prior mid-single-digit expectations.
- Organic sales growth of 1.4% driven by 1.5% net selling price increases
- Gross profit margin expanded 80 basis points to 60.8%
- Advertising investment increased 30 basis points to 13.6% of net sales
- P&L flexibility enabled operating profit, net income, and EPS growth despite volatile environment
- Hill's Pet Nutrition operating profit surged 30% with 23.1% margin
- Europe organic sales grew 5.4% driven by 3.0% volume growth and 2.4% pricing
- Latin America organic sales grew 4.0% despite 12.7% FX headwind
- Foreign exchange was a 4.4% headwind to total company net sales
“Colgate-Palmolive people delivered another quarter of organic sales and earnings per share growth in the face of very difficult market conditions worldwide. The positive organic sales growth, in a period of slowing category growth in many markets, is a testament to the strength of our brands and our commitment to executing against our strategy.”
Colgate-Palmolive Company CEO, on the earnings call
What Was Colgate-Palmolive Company's Outlook in Q1 2025?
For full year 2025, based on current spot rates and including the estimated impact of tariffs announced and in effect as of April 24, 2025: net sales expected to be up low single digits, including a low-single-digit negative impact from foreign exchange; organic sales growth expected to be 2% to 4%; on both a GAAP and non-GAAP (Base Business) basis, gross profit margin and advertising expected to be roughly flat as a percentage of net sales, and earnings per share expected to be up low single digits.
CL YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $4.9B | $5.1B | −3.0% |
| Gross Profit | $3.0B | $3.0B | −1.6% |
| Operating Income | $1.1B | $1.2B | −8.6% |
| Net Income | $690.0M | $683.0M | +1.0% |
CL Revenue by Segment
CL Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.