Colgate-Palmolive

CL Q1 2025 Earnings

Reported Apr 25, 2025 at 7:57 AM ET · SEC Source

Q1 25 EPS

$0.91

BEAT +6.11%

Est. $0.86

Q1 25 Revenue

$4.91B

BEAT +0.98%

Est. $4.86B

vs S&P Since Q1 25

-35.8%

TRAILING MARKET

CL -4.9% vs S&P +30.9%

Market Reaction

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 punish… Read more 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
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CL YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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CL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
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CL Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“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.”

— Noel Wallace, Q1 2025 Earnings Press Release