Colgate-Palmolive Co (CL, Financial) released its earnings report for the third quarter of 2023 on October 27, 2023. The company reported a 10.5% increase in net sales and a 9.0% increase in organic sales. The GAAP EPS and Base Business EPS both increased by 16% to $0.86. The GAAP Gross profit margin increased 130 basis points to 58.5% and the Base Business Gross profit margin increased 140 basis points to 58.6%. The company also reported that net cash provided by operations was $2,609 million for the first nine months of 2023, up 39% versus 2022.
Financial Highlights
Colgate-Palmolive Co (CL, Financial) reported net sales of $4,915 million in Q3 2023, up from $4,455 million in the same period in 2022. The GAAP EPS and Base Business EPS both increased to $0.86, up from $0.74 in Q3 2022. The GAAP Gross profit margin increased to 58.5%, and the Base Business Gross profit margin increased to 58.6%.
Company Performance and Outlook
Noel Wallace, Chairman, President and Chief Executive Officer, commented on the Base Business third quarter results, stating,
“We are very pleased to have delivered another quarter of strong top and bottom line growth. Net sales increased 10.5% and organic sales grew 9.0% with volume improving sequentially versus second quarter 2023. Gross profit margin, operating profit margin, operating profit, net income, earnings per share and free cash flow all increased versus the year ago quarter."The company raised its financial guidance for full year 2023, now expecting net sales growth to be 6% to 8%, and organic sales growth guidance to 7% to 8%.
Divisional Performance
Colgate-Palmolive Co (CL, Financial) reported growth in five out of six divisions and in all four categories. The North America division reported a 3.5% increase in net sales, while the Latin America division reported a 20.0% increase. The Europe division reported a 14.5% increase in net sales, while the Asia Pacific division reported a 4.0% decrease. The Africa/Eurasia division reported a 7.5% decrease in net sales, while Hill's reported a 21.5% increase.
Market Share Information
Colgate-Palmolive Co (CL, Financial) continued its leadership in toothpaste with its global market share at 41.0% year to date. The company's leadership in manual toothbrushes also continued with its global market share at 31.5% year to date.
Explore the complete 8-K earnings release (here) from Colgate-Palmolive Co for further details.
