Colgate-Palmolive Company (CL) Bundle
A Brief History of Colgate-Palmolive Company
Colgate-Palmolive Company, a leading global consumer products company, has a rich history dating back to its founding in 1806. Initially a soap and candle business, it has evolved into a multinational corporation renowned for its oral care, personal care, home care, and pet nutrition products.
Company Overview as of 2024
As of September 30, 2024, Colgate-Palmolive reported significant growth in its financial performance. The company's net sales for the first nine months of 2024 amounted to $15.25 billion, reflecting a growth of 8.5% compared to $14.06 billion in the same period of 2023.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Net Sales | $15.25 billion | $14.06 billion | 8.5% |
| Operating Profit (GAAP) | $3.205 billion | $2.912 billion | 10% |
| Net Income (GAAP) | $2.150 billion | $1.582 billion | 36% |
| Earnings Per Share (Diluted) | $2.61 | $1.90 | 37% |
| Gross Profit Margin | 60.6% | 57.7% | 2.9% |
Key Developments in 2024
In 2024, Colgate-Palmolive continued to implement its 2022 Global Productivity Initiative, aimed at reallocating resources to enhance strategic priorities and improve operational efficiencies. This initiative is expected to yield annualized pretax savings of approximately $125 million.
Market Performance
The company has demonstrated resilience in a challenging economic environment characterized by inflation and fluctuating consumer demand. In the first nine months of 2024, organic sales growth was reported at 9.3%, driven primarily by strong performance in Latin America and Europe.
| Sales Growth by Region | Organic Sales Growth | Net Sales Growth (GAAP) |
|---|---|---|
| North America | 1.1% | 1.1% |
| Latin America | 19.4% | 6.6% |
| Europe | 7.4% | 8.6% |
| Asia Pacific | 4.1% | 2.4% |
| Africa/Eurasia | 14.5% | 0.7% |
Financial Outlook
Colgate-Palmolive anticipates continued challenges in the macroeconomic landscape, including inflationary pressures and currency fluctuations. The company remains committed to enhancing its product offerings and optimizing its supply chain to mitigate these impacts.
As of September 30, 2024, the company reported total debt of $8.436 billion, a decrease from $8.549 billion at the end of 2023. Cash and cash equivalents increased to $1.234 billion from $966 million over the same period, indicating a strengthening liquidity position.
| Debt and Liquidity Metrics | 2024 | 2023 |
|---|---|---|
| Total Debt | $8.436 billion | $8.549 billion |
| Cash and Cash Equivalents | $1.234 billion | $966 million |
| Dividends Paid (per share) | $1.98 | $1.90 |
Colgate-Palmolive's strong performance in 2024, underpinned by strategic initiatives and robust market presence, positions the company well for future growth amidst ongoing economic challenges.
A Who Owns Colgate-Palmolive Company (CL)
Major Shareholders
As of 2024, the ownership structure of Colgate-Palmolive Company is characterized by a diverse range of institutional and individual shareholders. The following table summarizes the major shareholders:
| Shareholder Type | Ownership Percentage | Number of Shares (Approx.) |
|---|---|---|
| Institutional Investors | 75.0% | 609 million |
| Individual Investors | 15.0% | 122 million |
| Company Executives and Board Members | 5.0% | 41 million |
| Other (including mutual funds) | 5.0% | 41 million |
Institutional Ownership Breakdown
The institutional ownership of Colgate-Palmolive is significant, with several large institutional investors holding substantial stakes. The following table provides details on the top institutional shareholders:
| Institution | Ownership Percentage | Number of Shares (Approx.) |
|---|---|---|
| The Vanguard Group | 8.5% | 69 million |
| BlackRock, Inc. | 8.0% | 65 million |
| State Street Corporation | 5.2% | 42 million |
| Wellington Management Co. LLP | 3.9% | 32 million |
| Fidelity Investments | 3.7% | 30 million |
Executive Ownership
Colgate-Palmolive's executives and board members also maintain a notable shareholding. The following table outlines the ownership held by the company's executives:
| Name | Position | Number of Shares | Ownership Percentage |
|---|---|---|---|
| Chairman & CEO | Chairman & CEO | 1.5 million | 0.2% |
| CFO | Chief Financial Officer | 1.2 million | 0.1% |
| COO | Chief Operating Officer | 1.0 million | 0.1% |
| Other Executives | Various | 2.3 million | 0.3% |
Recent Changes in Shareholder Composition
In 2024, Colgate-Palmolive experienced a shift in its shareholder composition due to various factors, including stock buybacks and changes in institutional investor strategies. Notable changes include:
- Increased share repurchase activity, which reduced the number of outstanding shares.
- Institutional investors increasing their stakes in response to strong financial performance.
- Continued interest from mutual funds focusing on consumer staples during economic uncertainty.
Stock Performance and Market Capitalization
As of the end of Q3 2024, Colgate-Palmolive's stock price was $90.25, with a market capitalization of approximately $73.5 billion. The stock has shown resilience with a year-to-date increase of 8.5% following strong earnings reports.
| Metric | Value |
|---|---|
| Current Stock Price | $90.25 |
| Market Capitalization | $73.5 billion |
| Year-to-Date Performance | +8.5% |
| Dividend Yield | 2.2% |
Outlook for Shareholders
Looking ahead, analysts expect Colgate-Palmolive to continue its strong performance driven by its robust product portfolio and strategic initiatives aimed at expanding market share in emerging markets. The company is also expected to maintain a stable dividend policy, providing consistent returns to shareholders.
Colgate-Palmolive Company (CL) Mission Statement
Colgate-Palmolive Company emphasizes its commitment to improving the health, comfort, and well-being of people around the world through its products. The company’s mission statement reflects a dedication to sustainability and social responsibility, aiming to make a positive impact on communities and the environment.
Mission Statement Overview
The mission of Colgate-Palmolive is to provide products of superior quality and value that improve the health and well-being of people and their pets. This mission is supported by a strong commitment to sustainability, innovation, and social responsibility.
Key Components of the Mission Statement
- Health and Well-being: Focus on enhancing the health and comfort of consumers through quality products.
- Sustainability: Commitment to reducing environmental impact and promoting sustainable practices.
- Innovation: Continuous improvement and innovation in product development to meet the evolving needs of consumers.
- Community Engagement: Active involvement in social responsibility initiatives and community support.
Financial Performance Indicators
Colgate-Palmolive's financial performance aligns with its mission, showcasing strong revenue growth and profitability. Below is a summary of the latest financial data:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $4,000 million | $3,800 million | 5.3% |
| Operating Profit | $1,065 million | $1,029 million | 3.5% |
| Net Income | $737 million | $708 million | 4.1% |
| Earnings Per Share (Diluted) | $0.90 | $0.86 | 4.7% |
Market Share and Growth
Colgate-Palmolive maintains a significant market presence in the oral care segment, reflecting the effectiveness of its mission in driving sales and brand loyalty. As of 2024, the company holds a:
- 41.6% share of the global toothpaste market.
- 32.3% share of the global manual toothbrush market.
Product Segmentation and Sales Growth
Sales growth across various product segments reinforces Colgate-Palmolive's commitment to consumer health and well-being. The following table outlines the net sales and operating profits by segment:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Operating Profit (Q3 2024) | Operating Profit (Q3 2023) |
|---|---|---|---|---|
| Oral Care | $1,500 million | $1,450 million | $400 million | $380 million |
| Personal Care | $1,200 million | $1,150 million | $250 million | $230 million |
| Home Care | $800 million | $750 million | $150 million | $140 million |
| Pet Nutrition | $1,126 million | $1,058 million | $258 million | $201 million |
Sustainability and Corporate Responsibility Initiatives
Colgate-Palmolive’s commitment to sustainability is evident in its various initiatives aimed at reducing its environmental footprint. Key sustainability goals include:
- Achieving 100% recyclable packaging by 2025.
- Reducing greenhouse gas emissions by 30% by 2030.
- Investing in community health programs globally.
Conclusion
Colgate-Palmolive continues to align its mission with financial performance, market leadership, and sustainability initiatives, reinforcing its commitment to improving the health and well-being of consumers worldwide.
How Colgate-Palmolive Company (CL) Works
Company Overview
Colgate-Palmolive Company operates in the consumer products sector, focusing on oral care, personal care, home care, and pet nutrition. The company has a diverse portfolio of products sold globally, leveraging its strong brand recognition.
Financial Performance
As of the third quarter of 2024, Colgate-Palmolive reported worldwide net sales of $5,033 million, representing a 2.4% increase from the same quarter in 2023. This growth was driven by a volume increase of 3.7% and net selling price increases of 3.1%, though partially offset by negative foreign exchange impacts of 4.4%.
Segment Performance
The company's operations are segmented into Oral, Personal, and Home Care, and Pet Nutrition. Below is a summary of net sales and operating profits by segment for the first nine months of 2024:
| Segment | Net Sales (in millions) | Operating Profit (in millions) |
|---|---|---|
| Oral, Personal, and Home Care | $11,814 | $3,119 |
| Pet Nutrition | $3,342 | $691 |
| Total | $15,156 | $3,205 |
Regional Performance
The company’s performance varied across regions in the third quarter of 2024:
| Region | Net Sales (in millions) | Operating Profit (in millions) | Operating Margin (%) |
|---|---|---|---|
| North America | $1,004 | $206 | 20.5% |
| Latin America | $1,156 | $365 | 31.6% |
| Europe | $744 | $181 | 24.3% |
| Asia Pacific | $725 | $199 | 27.4% |
| Africa/Eurasia | $278 | $65 | 23.4% |
Sales Growth by Product Category
In the first nine months of 2024, organic sales growth was as follows:
| Category | Organic Sales Growth (%) |
|---|---|
| Oral Care | 9.3% |
| Personal Care | 8.5% |
| Home Care | 8.1% |
| Pet Nutrition | 5.6% |
Profitability Metrics
The operating profit margin for the first nine months of 2024 was 21.1%, an increase from 20.1% in the same period of 2023. The effective income tax rate for the same period was 23.4%.
Cash Flow and Capital Expenditures
Net cash provided by operations increased 9% to $2,838 million in the first nine months of 2024 compared to $2,609 million in 2023. Capital expenditures for the same period were $377 million, representing approximately 3.0% of net sales.
Market Share
Colgate-Palmolive holds a significant share in the global toothpaste market, estimated at 41.6% year-to-date, and 32.3% in the manual toothbrush market.
Challenges and Strategic Initiatives
The company continues to navigate challenges such as geopolitical tensions and foreign exchange fluctuations. As part of its strategic focus, Colgate-Palmolive has implemented the 2022 Global Productivity Initiative, aimed at reallocating resources and streamlining operations.
Dividends
Colgate-Palmolive declared a quarterly dividend of $0.50 per share.
How Colgate-Palmolive Company (CL) Makes Money
Revenue Segments
Colgate-Palmolive generates revenue through two primary segments: Oral, Personal and Home Care, and Pet Nutrition. In the third quarter of 2024, the net sales by segment were as follows:
| Segment | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | Change (%) |
|---|---|---|---|
| Oral, Personal and Home Care | $3,907 | $3,857 | 1.3% |
| Pet Nutrition | $1,126 | $1,058 | 6.3% |
| Total Net Sales | $5,033 | $4,915 | 2.4% |
Market Share
As of 2024, Colgate-Palmolive holds significant market shares in various categories:
- Global toothpaste market share: 41.6%
- Global manual toothbrush market share: 32.3%
Sales Growth Drivers
Key drivers of sales growth in 2024 include:
- Volume growth of 3.3%
- Net selling price increases of 5.2%
- Organic sales growth of 8.5%
Geographic Breakdown
The geographic breakdown of net sales for the first nine months of 2024 is as follows:
| Region | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) |
|---|---|---|
| North America | $3,076 | $3,044 |
| Latin America | $3,676 | $3,447 |
| Europe | $2,102 | $1,935 |
| Asia Pacific | $2,133 | $2,084 |
| Africa/Eurasia | $827 | $822 |
Profitability Metrics
Colgate-Palmolive's operating profit for the third quarter of 2024 was:
- Operating profit: $1,065 million
- Operating profit margin: 21.2%
Cost Structure
Colgate-Palmolive's gross profit and margin for Q3 2024 were:
- Gross profit: $3,074 million
- Gross profit margin: 61.1%
Advertising and Promotion Expenses
Selling, general and administrative expenses increased in Q3 2024:
- Total expenses: $1,979 million
- As a percentage of net sales: 39.3%
Earnings Performance
Net income attributable to Colgate-Palmolive Company for Q3 2024 was:
- Net income: $737 million
- Earnings per share (diluted): $0.90
Year-to-Date Performance
For the first nine months of 2024, the financial performance was as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net sales | $15,156 million | $14,507 million |
| Operating profit | $3,205 million | $2,912 million |
| Net income | $2,270 million | $1,695 million |
Investment in Innovation
Colgate-Palmolive continues to invest in science-led innovation, focusing on:
- Core and premium product lines
- Higher-growth adjacent categories
- Market expansion strategies
Global Productivity Initiative
The 2022 Global Productivity Initiative has yielded:
- Expected total pretax charges: $225 million
- Annualized pretax savings expected: $125 million
Financial Position
As of September 30, 2024, Colgate-Palmolive's financial position includes:
- Total assets: $16.5 billion
- Total liabilities: $10.2 billion
- Shareholders' equity: $6.3 billion
Colgate-Palmolive's strategies, diverse product offerings, and global presence contribute to its revenue generation and profitability in 2024.
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Article updated on 8 Nov 2024
Resources:
- Colgate-Palmolive Company (CL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Colgate-Palmolive Company (CL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Colgate-Palmolive Company (CL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.