UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC  20549
________________

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 28, 2022

COLGATE-PALMOLIVE COMPANY
 (Exact name of registrant as specified in its charter)

Delaware
1-644
13-1815595
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)

300 Park Avenue, New York, New York 10022
(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code (212) 310-2000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
  Trading Symbol(s)
 
Name of each exchange on which
registered
Common Stock, $1.00 par value
  CL
  New York Stock Exchange
0.500% Notes due 2026
  CL 26
  New York Stock Exchange
0.300% Notes due 2029
  CL 29
  New York Stock Exchange
1.375% Notes due 2034
  CL 34
  New York Stock Exchange
 0.875% Notes due 2039    CL 39   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.
Results of Operations and Financial Condition.

On October 28, 2022, Colgate-Palmolive Company (the “Company”) issued a press release announcing its earnings for the quarter ended September 30, 2022.  This press release is attached as Exhibit 99 and is incorporated herein by reference.

The information in Item 2.02 of this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.  The information in Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.


Item 9.01.
Financial Statements and Exhibits.


(d)
Exhibits.  The following exhibits are filed with this document:


Exhibit Number
Description


99
Press release, dated October 28, 2022, issued by Colgate-Palmolive Company


104
Cover Page Interactive Data File (embedded within the Inline eXtensible Business Reporting Language (Inline XBRL) document)

2




EXHIBIT INDEX



Exhibit Number
Description


99


104
Cover Page Interactive Data File (embedded within the Inline eXtensible Business Reporting Language (Inline XBRL) document)


3



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



 
COLGATE-PALMOLIVE COMPANY
 
 
 
     
Date:  October 28, 2022
By:     /s/ Stanley J. Sutula III                                                            
 
Name: Stanley J. Sutula III
 
Title:   Chief Financial Officer


4
Exhibit 99

Colgate Announces 3rd Quarter 2022 Results

 

NEW YORK--(BUSINESS WIRE)--October 28, 2022--Colgate-Palmolive Company (NYSE:CL):

  • Net sales increased 1.0%; Organic sales* increased 7.0% with growth in every division and all four categories
  • GAAP EPS declined 1% to $0.74; Base Business EPS* declined 9% to $0.74, both of which reflect a negative foreign exchange translation impact of $0.05
  • GAAP Gross profit margin and Base Business Gross profit margin* both decreased 220 basis points to 57.2%
  • Net cash provided by operations was $1,883 million for the first nine months of 2022
  • Colgate’s leadership in toothpaste continued with its global market share at 39.7% year to date
  • Colgate’s leadership in manual toothbrushes continued with its global market share at 31.6% year to date
  • The Company updated its financial guidance for full year 2022

Third Quarter Total Company Results (GAAP)

($ in millions except per share amounts)

2022

2021

Change

Net Sales

$4,455

$4,414

+1.0%

EPS (diluted)

$0.74

$0.75

-1%

 

 

 

 

 

 

 

 

Third Quarter Total Company Results (Base Business - Non-GAAP)*

($ in millions except per share amounts)

2022

2021

Change

Organic Sales Growth

+7.0%

Base Business EPS (diluted)

$0.74

$0.81

-9%

*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.


Colgate-Palmolive Company (NYSE:CL) today reported results for third quarter 2022. Noel Wallace, Chairman, President and Chief Executive Officer, commented on the Base Business third quarter results, “We are very pleased to have delivered our 15th consecutive quarter of organic sales growth at or above our targeted range of 3% to 5%. Net sales increased 1.0%, and organic sales grew 7.0% with growth in every division and in all four of our categories.

“The consistent, strong, broad-based growth is evidence that our strategies are working. Our focus on science-led, core and premium innovation is providing value at all price points, which is particularly important in today’s difficult macroeconomic environment. Our investments in building and scaling our digital and other capabilities across the enterprise are also paying off with our revenue growth management initiatives helping to drive double-digit pricing worldwide.

“As expected, significant increases in raw and packaging material and logistics costs continued during the quarter and the negative impact from currency accelerated. Beyond revenue growth management and the significant pricing actions we are taking, we are also continuing our efforts around funding-the-growth and other productivity initiatives to help offset these headwinds.

“Looking ahead, despite the challenging macroeconomic environment, we intend to continue to execute against our strategy in order to drive value for all stakeholders.”


Full Year 2022 Guidance

Based on current spot rates:

  • The Company now expects net sales growth to be in the middle of the 1% to 4% range, including an approximately 5% negative impact from foreign exchange and a modest benefit from the Red Collar acquisition.
  • The Company raised its organic sales growth guidance for the year from 5% to 7% to 6% to 7%.
  • On a GAAP basis, the Company still expects a decline in gross profit margin and double-digit earnings-per-share growth, and now expects advertising investment to be roughly flat.
  • On a non-GAAP (Base Business) basis, the Company still expects a decline in gross profit margin and now expects roughly flat advertising investment and a 7% to 8% earnings-per-share decline reflecting the incremental negative impact from foreign exchange due to the move in exchange rates since our second quarter earnings release.

Divisional Performance

The following are comments about divisional performance for third quarter 2022 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.

Third Quarter Sales Growth By Division

(% change 3Q 2022 vs. 3Q 2021)

 

Net
Sales

Organic
Sales*

As Reported
Volume

Organic
Volume

Pricing

FX

North America

+3.0%

+3.5%

-5.5%

-5.5%

+9.0%

-0.5%

Latin America

+7.0%

+11.5%

-8.5%

-8.5%

+20.0%

-4.5%

Europe

-12.0%

+2.5%

-2.5%

-2.5%

+5.0%

-14.5%

Asia Pacific

-3.0%

+5.0%

-1.0%

-1.0%

+6.0%

-8.0%

Africa/Eurasia

+11.0%

+20.0%

-6.5%

-6.5%

+26.5%

-9.0%

Hill's

+3.0%

+7.5%

-3.5%

-3.5%

+11.0%

-4.5%

 

 

 

 

 

 

 

Total Company

+1.0%

+7.0%

-4.5%

-4.5%

+11.5%

-6.0%

*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.


Third Quarter Operating Profit By Division

($ in millions)

 

3Q 2022

% Change vs
3Q 2021

% to Net
Sales

Change in basis
points vs 3Q 2021

% to Net Sales

North America

$198

8%

20.7%

+100

Latin America

$289

17%

29.0%

+240

Europe

$127

-29%

20.1%

-470

Asia Pacific

$185

-14%

26.1%

-330

Africa/Eurasia

$66

50%

23.0%

+590

Hill's

$201

-14%

23.1%

-450

 

 

 

 

 

Total Company, As Reported

$947

-2%

21.3%

-60

Total Company, Base Business*

$920

-5%

20.7%

-120

*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.

North America (22% of Company Sales)

  • Organic sales growth was broad based across oral care, personal care and home care.
  • In the United States, Colgate's share of the toothpaste market is 34.6% year to date and its share of the manual toothbrush market is 42.3% year to date.
  • The increase in Operating profit as a percentage of Net sales was primarily due to higher pricing, cost savings from the Company’s funding-the-growth initiatives and lower overhead expenses, partially offset by significantly higher raw and packaging material costs.

Latin America (22% of Company Sales)

  • Organic sales growth was led by Brazil, Mexico, Argentina and Colombia.
  • The increase in Operating profit as a percentage of Net sales was primarily due to higher pricing, cost savings from the Company’s funding-the-growth initiatives, a value-added tax refund and lower overhead expenses, partially offset by significantly higher raw and packaging material costs.

Europe (14% of Company Sales)

  • Organic sales growth was led by the United Kingdom, Poland and France, partially offset by organic sales declines in the Filorga business.
  • The decrease in Operating profit as a percentage of Net sales was primarily due to significantly higher raw and packaging material costs and higher logistics costs, partially offset by cost savings from the Company’s funding-the-growth initiatives, higher pricing, overhead efficiencies and decreased advertising investment.

Asia Pacific (16% of Company Sales)

  • Organic sales growth was led by the Greater China region, Australia and the Philippines.
  • The decrease in Operating profit as a percentage of Net sales was primarily due to significantly higher raw and packaging material costs and increased advertising investment, partially offset by cost savings from the Company's funding-the-growth initiatives and higher pricing.

Africa/Eurasia (6% of Company Sales)

  • Organic sales growth was led by Turkiye and South Africa.
  • The increase in Operating profit as a percentage of Net sales was primarily due to higher pricing, cost savings from the Company’s funding-the-growth initiatives, lower overhead expenses and decreased advertising investment, partially offset by significantly higher raw and packaging material costs.

Hill's Pet Nutrition (20% of Company Sales)

  • Organic sales growth was led by the United States and Europe.
  • The decrease in Operating profit as a percentage of Net sales was primarily due to significantly higher raw and packaging material costs and higher logistics costs, partially offset by higher pricing, decreased advertising investment, cost savings from the Company’s funding-the-growth initiatives and overhead efficiencies.

Prepared Materials and Webcast Information

At approximately 7:00 a.m. ET today, Colgate will post its prepared materials (in PDF format) regarding third quarter 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 third quarter 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 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, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. We are recognized for our leadership and innovation in promoting sustainability and community wellbeing, including our 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 more than 1.4 billion children since 1991. For more information about Colgate’s global business and how we are building a future to smile about, visit www.colgatepalmolive.com. CL-E

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 COVID-19, the impact of the war in Ukraine, cost-reduction plans, including the 2022 Global Productivity Initiative, tax rates, interest rates, new product introductions and 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, 2021 and subsequent Quarterly Reports on Form 10-Q). 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 relating to the 2022 Global Productivity Initiative, a gain on the sale of land in Asia Pacific, acquisition-related costs, a loss on the early extinguishment of debt and a benefit related to a value-added tax matter in Brazil.
  • 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 nine months ended September 30, 2022 versus 2021 included with this release for a comparison of Organic sales growth to Net sales growth in accordance with GAAP.


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, gains and losses from certain acquisitions, 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 nine months ended September 30, 2022 and 2021 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 nine months ended September 30, 2022 and 2021 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 third quarter results.)


 

 

 

 

Table 1


Colgate-Palmolive Company


 


Condensed Consolidated Statements of Income


 


For the Three Months Ended September 30, 2022 and 2021


 


(Dollars in Millions Except Per Share Amounts) (Unaudited)


 


 

 

 

2022

 

 

 

2021

 


 

 

 

 

 


Net sales

 

$

4,455

 

 

$

4,414

 


 

 

 

 

 


Cost of sales

 

 

1,907

 

 

 

1,791

 


 

 

 

 

 


Gross profit

 

 

2,548

 

 

 

2,623

 


 

 

 

 

 


Gross profit margin

 

 

57.2

%

 

 

59.4

%


 

 

 

 

 


Selling, general and administrative expenses

 

 

1,634

 

 

 

1,636

 


 

 

 

 

 


Other (income) expense, net

 

 

(33

)

 

 

20

 


 

 

 

 

 


Operating profit

 

 

947

 

 

 

967

 


 

 

 

 

 


Operating profit margin

 

 

21.3

%

 

 

21.9

%


 

 

 

 

 


Non-service related postretirement costs

 

 

15

 

 

 

16

 


 

 

 

 

 


Interest (income) expense, net

 

 

40

 

 

 

98

 


 

 

 

 

 


Income before income taxes

 

 

892

 

 

 

853

 


 

 

 

 

 


Provision for income taxes

 

 

210

 

 

 

172

 


 

 

 

 

 


Effective tax rate

 

 

23.5

%

 

 

20.2

%


 

 

 

 

 


Net income including noncontrolling interests

 

 

682

 

 

 

681

 


 

 

 

 

 


Less: Net income attributable to noncontrolling interests

 

 

64

 

 

 

47

 


 

 

 

 

 


Net income attributable to Colgate-Palmolive Company

 

$

618

 

 

$

634

 


 

 

 

 

 


Earnings per common share

 

 

 

 


Basic

 

$

0.74

 

 

$

0.75

 


Diluted

 

$

0.74

 

 

$

0.75

 


 

 

 

 

 


Supplemental Income Statement Information

 

 

 

 


Average common shares outstanding

 

 

 

 


Basic

 

 

835.7

 

 

 

843.6

 


Diluted

 

 

838.5

 

 

 

846.4

 


 

 

 

 

 


Advertising

 

$

486

 

 

$

503

 




 

 

 

Table 2

Colgate-Palmolive Company

 

Condensed Consolidated Statements of Income

 

For the Nine Months Ended September 30, 2022 and 2021

 

(Dollars in Millions Except Per Share Amounts) (Unaudited)

 

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

Net sales

 

$

13,338

 

 

$

13,018

 

 

 

 

 

 

Cost of sales

 

 

5,664

 

 

 

5,202

 

 

 

 

 

 

Gross profit

 

 

7,674

 

 

 

7,816

 

 

 

 

 

 

Gross profit margin

 

 

57.5

%

 

 

60.0

%

 

 

 

 

 

Selling, general and administrative expenses

 

 

4,932

 

 

 

4,809

 

 

 

 

 

 

Other (income) expense, net

 

 

51

 

 

 

40

 

 

 

 

 

 

Operating profit

 

 

2,691

 

 

 

2,967

 

 

 

 

 

 

Operating profit margin

 

 

20.2

%

 

 

22.8

%

 

 

 

 

 

Non-service related postretirement costs

 

 

65

 

 

 

52

 

 

 

 

 

 

Interest (income) expense, net

 

 

98

 

 

 

152

 

 

 

 

 

 

Income before income taxes

 

 

2,528

 

 

 

2,763

 

 

 

 

 

 

Provision for income taxes

 

 

604

 

 

 

613

 

 

 

 

 

 

Effective tax rate

 

 

23.9

%

 

 

22.2

%

 

 

 

 

 

Net income including noncontrolling interests

 

 

1,924

 

 

 

2,150

 

 

 

 

 

 

Less: Net income attributable to noncontrolling interests

 

 

144

 

 

 

132

 

 

 

 

 

 

Net income attributable to Colgate-Palmolive Company

 

$

1,780

 

 

$

2,018

 

 

 

 

 

 

Earnings per common share

 

 

 

 

Basic(1)

 

$

2.12

 

 

$

2.39

 

Diluted(1)

 

$

2.12

 

 

$

2.38

 

 

 

 

 

 

Supplemental Income Statement Information

 

 

 

 

Average common shares outstanding

 

 

 

 

Basic

 

 

837.7

 

 

 

845.9

 

Diluted

 

 

840.4

 

 

 

849.0

 

 

 

 

 

 

Advertising

 

$

1,493

 

 

$

1,532


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 September 30, 2022, December 31, 2021 and September 30, 2021

 

(Dollars in Millions) (Unaudited)

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

September 30,

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

Cash and cash equivalents

 

$

938

 

 

$

832

 

 

$

958

 

Receivables, net

 

 

1,425

 

 

 

1,297

 

 

 

1,424

 

Inventories

 

 

2,073

 

 

 

1,692

 

 

 

1,670

 

Other current assets

 

 

842

 

 

 

576

 

 

 

618

 

Property, plant and equipment, net

 

 

4,123

 

 

 

3,730

 

 

 

3,633

 

Goodwill

 

 

3,538

 

 

 

3,284

 

 

 

3,685

 

Other intangible assets, net

 

 

2,219

 

 

 

2,462

 

 

 

2,719

 

Other assets

 

 

1,130

 

 

 

1,167

 

 

 

1,173

 

Total assets

 

$

16,288

 

 

$

15,040

 

 

$

15,880

 

 

 

 

 

 

 

 

Total debt

 

$

8,248

 

 

$

7,245

 

 

$

7,696

 

Other current liabilities

 

 

4,463

 

 

 

4,000

 

 

 

4,267

 

Other non-current liabilities

 

 

2,524

 

 

 

2,824

 

 

 

2,890

 

Total liabilities

 

 

15,235

 

 

 

14,069

 

 

 

14,853

 

Total Colgate-Palmolive Company shareholders’ equity

 

 

622

 

 

 

609

 

 

 

591

 

Noncontrolling interests

 

 

431

 

 

 

362

 

 

 

436

 

Total liabilities and equity

 

$

16,288

 

 

$

15,040

 

 

$

15,880

 

 

 

 

 

 

 

 

Supplemental Balance Sheet Information

 

 

 

 

 

 

Debt less cash, cash equivalents and marketable securities(1)

 

$

7,102

 

 

$

6,379

 

 

$

6,638

 

Working capital % of sales

 

 

(1.9

)%

 

 

(2.7

)%

 

 

(3.8

)%

Note:

(1) Marketable securities of $208, $34 and $100 as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively, are included in Other current assets.


 

 

 

 

Table 4

Colgate-Palmolive Company

 

Condensed Consolidated Statements of Cash Flows

 

For the Nine Months Ended September 30, 2022 and 2021

 

(Dollars in Millions) (Unaudited)

 

 

 

 

 

 

 

 

2022

 

 

 

2021

 

Operating Activities

 

 

 

 

Net income including noncontrolling interests

 

$

1,924

 

 

$

2,150

 

Adjustments to reconcile Net income including noncontrolling interests to Net cash provided by operations:

 

 

Depreciation and amortization

 

 

410

 

 

 

414

 

Restructuring and termination benefits, net of cash

 

 

51

 

 

 

(19

)

Stock-based compensation expense

 

 

105

 

 

 

107

 

Gain on sale of land

 

 

(47

)

 

 

 

Forward starting swap settlement

 

 

82

 

 

 

 

Loss on early extinguishment of debt

 

 

 

 

 

75

 

Deferred income taxes

 

 

(13

)

 

 

(146

)

Cash effects of changes in:

 

 

 

 

Receivables

 

 

(171

)

 

 

(198

)

Inventories

 

 

(422

)

 

 

(37

)

Accounts payable and other accruals

 

 

9

 

 

 

(107

)

Other non-current assets and liabilities

 

 

(45

)

 

 

(20

)

Net cash provided by (used in) operations

 

 

1,883

 

 

 

2,219

 

 

 

 

 

 

Investing Activities

 

 

 

 

Capital expenditures

 

 

(475

)

 

 

(374

)

Purchases of marketable securities and investments

 

 

(239

)

 

 

(118

)

Proceeds from sale of marketable securities and investments

 

 

55

 

 

 

55

 

Payment for acquisition, net of cash acquired

 

 

(817

)

 

 

 

Proceeds from sale of land

 

 

47

 

 

 

 

Other investing activities

 

 

1

 

 

 

(25

)

Net cash provided by (used in) investing activities

 

 

(1,428

)

 

 

(462

)

 

 

 

 

 

Financing Activities

 

 

 

 

Short-term borrowing (repayment) less than 90 days, net

 

 

(56

)

 

 

205

 

Principal payments on debt

 

 

(2

)

 

 

(118

)

Proceeds from issuance of debt

 

 

1,513

 

 

 

119

 

Dividends paid

 

 

(1,206

)

 

 

(1,183

)

Purchases of treasury shares

 

 

(895

)

 

 

(964

)

Proceeds from exercise of stock options

 

 

398

 

 

 

282

 

Other

 

 

(38

)

 

 

(9

)

Net cash provided by (used in) financing activities

 

 

(286

)

 

 

(1,668

)

 

 

 

 

 

Effect of exchange rate changes on Cash and cash equivalents

 

 

(63

)

 

 

(19

)

Net increase (decrease) in Cash and cash equivalents

 

 

106

 

 

 

70

 

Cash and cash equivalents at beginning of the period

 

 

832

 

 

 

888

 

Cash and cash equivalents at end of the period

 

$

938

 

 

$

958

 

 

 

 

 

 

Supplemental Cash Flow Information

 

 

 

 

Free cash flow before dividends (Net cash provided by operations less Capital expenditures)

 

 

 

 

Net cash provided by operations

 

$

1,883

 

 

$

2,219

 

Less: Capital expenditures

 

 

(475

)

 

 

(374

)

Free cash flow before dividends

 

$

1,408

 

 

$

1,845

 

 

 

 

 

 

 

 

 

 

 

Income taxes paid

 

$

690

 

 

$

742

 


 

 

 

 

 

 

 

 

Table 5

Colgate-Palmolive Company

 

 

 

 

 

Segment Information

 

 

 

 

 

For the Three and Nine Months Ended September 30, 2022 and 2021

 

 

 

 

 

(Dollars in Millions) (Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net Sales

 

 

 

 

 

 

 

 

Oral, Personal and Home Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

958

 

 

$

931

 

 

$

2,850

 

 

$

2,765

 

Latin America

 

 

997

 

 

 

931

 

 

 

2,970

 

 

 

2,745

 

Europe

 

 

632

 

 

 

718

 

 

 

1,925

 

 

 

2,144

 

Asia Pacific

 

 

709

 

 

 

731

 

 

 

2,131

 

 

 

2,142

 

Africa/Eurasia

 

 

287

 

 

 

258

 

 

 

809

 

 

 

796

 

 

 

 

 

 

 

 

 

 

Total Oral, Personal and Home Care

 

 

3,583

 

 

 

3,569

 

 

 

10,685

 

 

 

10,592

 

 

 

 

 

 

 

 

 

 

Pet Nutrition

 

 

872

 

 

 

845

 

 

 

2,653

 

 

 

2,426

 

 

 

 

 

 

 

 

 

 

Total Net Sales

 

$

4,455

 

 

$

4,414

 

 

$

13,338

 

 

$

13,018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating Profit

 

 

 

 

 

 

 

 

Oral, Personal and Home Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

198

 

 

$

183

 

 

$

557

 

 

$

585

 

Latin America

 

 

289

 

 

 

248

 

 

 

818

 

 

 

774

 

Europe

 

 

127

 

 

 

178

 

 

 

410

 

 

 

524

 

Asia Pacific

 

 

185

 

 

 

215

 

 

 

556

 

 

 

639

 

Africa/Eurasia

 

 

66

 

 

 

44

 

 

 

160

 

 

 

153

 

 

 

 

 

 

 

 

 

 

Total Oral, Personal and Home Care

 

 

865

 

 

 

868

 

 

 

2,501

 

 

 

2,675

 

 

 

 

 

 

 

 

 

 

Pet Nutrition

 

 

201

 

 

 

233

 

 

 

617

 

 

 

661

 

Corporate(1)

 

 

(119

)

 

 

(134

)

 

 

(427

)

 

 

(369

)

 

 

 

 

 

 

 

 

 

Total Operating Profit

 

$

947

 

 

$

967

 

 

$

2,691

 

 

$

2,967

 

Note:

(1) 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 September 30, 2022 included charges resulting from the 2022 Global Productivity Initiative of $3, a gain on the sale of land in Asia Pacific of $47 and acquisition-related costs of $17.

 

Corporate Operating profit (loss) for the nine months ended September 30, 2022 included charges resulting from the 2022 Global Productivity Initiative of $79, a gain on the sale of land in Asia Pacific of $47 and acquisition-related costs of $17.

 

Corporate Operating profit (loss) for the nine months ended September 30, 2021 included a benefit related to a value-added tax matter in Brazil of $26.


Table 6

Colgate-Palmolive Company

 

Geographic Sales Analysis Percentage Changes

 

For the Three Months Ended September 30, 2022 vs. 2021

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPONENTS OF SALES CHANGE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pricing

 

 

 

 

 

 

 

 

 

 

 

 

Coupons

 

 

 

 

Sales

 

 

 

 

 

 

 

Consumer &

 

 

 

 

Change

 

Organic

 

As Reported

 

Organic

 

Trade

 

Foreign

Region

 

As Reported

 

Sales Change

 

Volume

 

Volume

 

Incentives

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

1.0

%

 

7.0

%

 

(4.5

)%

 

(4.5

)%

 

11.5

%

 

(6.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3.0

%

 

3.5

%

 

(5.5

)%

 

(5.5

)%

 

9.0

%

 

(0.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

7.0

%

 

11.5

%

 

(8.5

)%

 

(8.5

)%

 

20.0

%

 

(4.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

(12.0

)%

 

2.5

%

 

(2.5

)%

 

(2.5

)%

 

5.0

%

 

(14.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

(3.0

)%

 

5.0

%

 

(1.0

)%

 

(1.0

)%

 

6.0

%

 

(8.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Africa/Eurasia

 

11.0

%

 

20.0

%

 

(6.5

)%

 

(6.5

)%

 

26.5

%

 

(9.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total CP Products

 

0.5

%

 

7.0

%

 

(5.0

)%

 

(5.0

)%

 

12.0

%

 

(6.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Hill’s

 

3.0

%

 

7.5

%

 

(3.5

)%

 

(3.5

)%

 

11.0

%

 

(4.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emerging Markets(1)

 

3.0

%

 

9.5

%

 

(6.5

)%

 

(6.5

)%

 

16.0

%

 

(6.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Developed Markets

 

(0.5

)%

 

5.0

%

 

(3.0

)%

 

(3.0

)%

 

8.0

%

 

(5.5

)%

Note:

(1) 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 Nine Months Ended September 30, 2022 vs. 2021

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPONENTS OF SALES CHANGE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pricing

 

 

 

 

 

 

 

 

 

 

 

 

Coupons

 

 

 

 

Sales

 

 

 

 

 

 

 

Consumer &

 

 

 

 

Change

 

Organic

 

As Reported

 

Organic

 

Trade

 

Foreign

Region

 

As Reported

 

Sales Change

 

Volume

 

Volume

 

Incentives

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

2.5

%

 

6.5

%

 

(2.0

)%

 

(2.0

)%

 

8.5

%

 

(4.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3.0

%

 

3.5

%

 

(0.5

)%

 

(0.5

)%

 

4.0

%

 

(0.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

8.0

%

 

10.0

%

 

(4.0

)%

 

(4.0

)%

 

14.0

%

 

(2.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

(10.5

)%

 

%

 

(3.5

)%

 

(3.5

)%

 

3.5

%

 

(10.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

(0.5

)%

 

5.0

%

 

(0.5

)%

 

(0.5

)%

 

5.5

%

 

(5.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Africa/Eurasia

 

1.5

%

 

10.5

%

 

(10.0

)%

 

(10.0

)%

 

20.5

%

 

(9.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total CP Products

 

1.0

%

 

5.0

%

 

(2.5

)%

 

(2.5

)%

 

7.5

%

 

(4.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Hill’s

 

9.5

%

 

13.0

%

 

2.0

%

 

2.0

%

 

11.0

%

 

(3.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emerging Markets(1)

 

3.5

%

 

7.5

%

 

(4.0

)%

 

(4.0

)%

 

11.5

%

 

(4.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Developed Markets

 

1.5

%

 

5.5

%

 

%

 

%

 

5.5

%

 

(4.0

)%

Note:

(1) 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 September 30, 2022 and 2021

 

(Dollars in Millions Except Per Share Amounts) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

 

 

 

2022

 

 

 

2021

 

 

 

Selling, general and administrative expenses, GAAP

 

 

 

$

1,634

 

 

$

1,636

 

 

 

2022 Global Productivity Initiative

 

 

 

 

(1

)

 

 

 

 

 

Selling, general and administrative expenses, non-GAAP

 

 

 

$

1,633

 

 

$

1,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (Income) Expense, Net

 

 

 

 

2022

 

 

 

2021

 

 

 

Other (income) expense, net, GAAP

 

 

 

 

 

$

(33

)

 

$

20

 

 

 

2022 Global Productivity Initiative

 

 

 

 

 

 

(2

)

 

 

 

 

 

Gain on the sale of land in Asia Pacific

 

 

 

 

47

 

 

 

 

 

 

Acquisition-related costs

 

 

 

 

(17

)

 

 

 

 

 

Other (income) expense, net, non-GAAP

 

 

 

 

 

$

(5

)

 

$

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

 

 

 

 

 

2022

 

 

 

2021

 

 

% Change

Operating profit, GAAP

 

 

 

 

 

$

947

 

 

$

967

 

 

 

(2

)%

2022 Global Productivity Initiative

 

 

 

 

 

 

3

 

 

 

 

 

 

Gain on the sale of land in Asia Pacific

 

 

 

 

(47

)

 

 

 

 

 

Acquisition-related costs

 

 

 

 

17

 

 

 

 

 

 

Operating profit, non-GAAP

 

 

 

 

 

$

920

 

 

$

967

 

 

 

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis Point

Operating Profit Margin

 

 

 

 

 

 

2022

 

 

 

2021

 

 

Change

Operating profit margin, GAAP

 

 

 

 

 

 

21.3

%

 

 

21.9

%

 

 

(60

)

2022 Global Productivity Initiative

 

 

 

 

 

 

0.1

%

 

 

%

 

 

Gain on the sale of land in Asia Pacific

 

 

 

 

 

 

(1.1

)%

 

 

%

 

 

Acquisition-related costs

 

 

 

 

 

 

0.4

%

 

 

%

 

 

Operating profit margin, non-GAAP

 

 

 

 

 

 

20.7

%

 

 

21.9

%

 

 

(120

)

 

 

Interest (Income) Expense, Net

 

 

 

 

 

 

2022

 

 

 

2021

 

 

 

Interest (income) expense, net, GAAP

 

 

 

 

 

$

40

 

 

$

98

 

 

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

(75

)

 

 

Interest (income) expense, net, non-GAAP

 

 

 

 

 

$

40

 

 

$

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Service Related Postretirement Costs

 

 

 

 

 

 

2022

 

 

 

2021

 

 

 

Non-service related postretirement costs, GAAP

 

 

 

 

 

$

15

 

 

$

16

 

 

 

2022 Global Productivity Initiative

 

 

 

 

 

 

1

 

 

 

 

 

 

Non-service related postretirement costs, non-GAAP

 

 

 

$

16

 

 

$

16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Table 8

Continued

Colgate-Palmolive Company

 

Non-GAAP Reconciliations

 

For the Three Months Ended September 30, 2022 and 2021

 

(Dollars in Millions Except Per Share Amounts) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

Income
Before

Income Taxes

 

Provision
For
Income
Taxes(1)

 

Net Income
Including
Noncontrolling
Interests

 

Less: Income
Attributable to
Noncontrolling Interests

 

Net Income

Attributable
To

Colgate-
Palmolive

Company

 

Effective
Income

Tax Rate(2)

 

Diluted
Earnings

Per Share

As Reported GAAP

$

892

 

 

$

210

 

 

$

682

 

 

$

64

 

 

$

618

 

 

 

23.5

%

 

$

0.74

 

2022 Global Productivity Initiative

 

2

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

 

 

(0.1

)%

 

 

 

Gain on the sale of land in Asia Pacific

 

(47

)

 

 

(11

)

 

 

(36

)

 

 

(21

)

 

 

(15

)

 

 

0.1

%

 

 

(0.02

)

Acquisition-related costs

 

17

 

 

 

2

 

 

 

15

 

 

 

 

 

 

15

 

 

 

(0.2

)%

 

 

0.02

 

Non-GAAP

$

864

 

 

$

201

 

 

$

663

 

 

$

43

 

 

$

620

 

 

 

23.3

%

 

$

0.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

Income
Before

IncomeTaxes

 

Provision
For
Income
Taxes(1)

 

Net Income

Including

Noncontrolling

Interests

 

Less: Income
Attributable to
Noncontrolling Interests

 

Net Income
Attributable
To

Colgate-
Palmolive
Company

 

Effective
Income

Tax
Rate(2)

 

Diluted
Earnings
Per Share

As Reported GAAP

$

853

 

 

$

172

 

 

$

681

 

 

$

47