Companies /Consumer Defensive

Colgate-Palmolive Company

NYSE: CL Household & Personal Products
$90.10
▲ $0.47 (+0.52%) today
Markets closed · 11:09pm ET

Q1 2025 Earnings

Reported Apr 25, 2025, 7:57am ET · SEC source
$0.91
Beat +6.11%
EPS · est. $0.86
$4.9B
Beat +0.98%
Revenue · est. $4.9B
−9.0%
Trailing market
CL vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0+2%Apr 25Apr 25report 7:57am ETearnings+1.1%−0.1%
−2%0+2%Apr 25Apr 25earnings+1.1%−0.1%
CL −0.1%S&P 500 +1.1%
−2%0+2%Apr 25Apr 25report 7:57am ETearnings+1.6%−0.1%
−2%0+2%Apr 25Apr 25earnings+1.6%−0.1%
CL −0.1%NASDAQ +1.6%
−3%0+3%Apr 24May 2report 7:57am ETearnings+3.9%−3.4%
−3%0+3%Apr 24May 2earnings+3.9%−3.4%
CL −3.4%S&P 500 +3.9%
−3%0+3%Apr 24May 2report 7:57am ETearnings+4.9%−3.4%
−3%0+3%Apr 24May 2earnings+4.9%−3.4%
CL −3.4%NASDAQ +4.9%
+1.31%
Day of report
−3.14%
Next session
−3.65%
One week
−2.29%
30 days

S&P 500 over the same 30 days: +6.74%.

Did CL Beat Earnings? Q1 2025 Results

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.

Key Takeaways
  • 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

Forward Guidance & Outlook

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

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$2.0B$4.0B$5.1B$4.9BRevenue$3.0B$3.0BGross Profit$1.2B$1.1BOperating Income$683.0M$690.0MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

CL Revenue by Segment

Oral, Personal and Home Care$3.8B
Hill's Pet Nutrition$1.1B+1.5%

CL Revenue by Geography

Latin America$1.1B−8.7%
Europe$690.0M+2.5%
North America$998.0M−3.6%
Asia Pacific$690.0M−5.0%
Africa/Eurasia$271.0M−1.5%

Figures from SEC filings and company reports. Not investment advice.