Colgate-Palmolive (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 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 CEO, on the earnings call
What Was Colgate-Palmolive'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.