In Q4 2024, Colgate-Palmolive maintained its leadership in oral care but faced slight revenue declines. Despite a 0.1% drop in net sales, organic sales grew 4.3%, supported by price increases and strong performance in key markets. The company continued to invest in marketing (+15% YoY), digital transformation, and innovation to sustain long-term growth.
đź“Š Income Statement Highlights (Q4 2024 vs. Q4 2023)
▫️Net Income: $739M vs. $718M (+3%)
▫️Total Revenue: $4.94B vs. $4.95B (-0.1%)
▫️Adjusted EPS: $0.91 vs. $0.87 (+5%)
▫️Gross Margin: 60.3% vs. 59.6% (+70 bps)
▫️Operating Income: $1.06B vs. $1.07B (-1%)
▫️Non-GAAP Operating Margin: 21.7% (flat YoY)
▫️GAAP Operating Margin: 21.5% (-20 bps)
▫️Operating Cash Flow: $4.1B (+10% YoY)
▫️Advertising Expense: $648M (+15% YoY)
▫️Hill’s Pet Nutrition Revenue: $1.14B (+2.3%)
đź’Ľ Balance Sheet Highlights (Q4 2024 vs. Q4 2023)
▫️Total Assets: $16.05B vs. $15.82B
▫️Total Liabilities: $15.50B vs. $15.33B
▫️Cash & Equivalents: $1.10B (+13.5%)
▫️Debt: $7.95B
▫️Equity: $212M (↓ due to share buybacks)
▫️Free Cash Flow: $3.55B (+9.5%)
đź”® Future Outlook
2025 Guidance:
▫️Net sales expected to be flat due to FX headwinds (~5% impact).
▫️Organic sales growth of 3-5%, in line with long-term targets.
▫️Gross margin expansion driven by pricing and efficiency gains.
▫️Flat to slightly higher advertising spend to drive brand momentum.
▫️Mid-single-digit EPS growth, despite expected private label pet nutrition exit.
Colgate is well-positioned to sustain growth through brand investment, cost optimization, and global market leadership.