Colgate‑Palmolive reported third‑quarter 2025 results, showing net sales of $5.13 billion, up 2.0% year‑over‑year and 0.4% organic growth, compared with $5.033 billion and 6.8% organic growth in Q3 2024.
GAAP earnings per share increased 1% to $0.91, while base‑business EPS remained flat at $0.91, beating consensus estimates of $0.86. Net income was $735 million, slightly below the $737 million reported in Q3 2024.
The company’s GAAP gross‑profit margin fell 170 basis points to 59.4%, from 61.1% in Q3 2024, due to higher raw‑material and packaging costs that offset gains from pricing power and a favorable product mix. The margin decline was partially mitigated by a 0.8% negative impact from the exit of lower‑margin private‑label pet sales.
Operating cash flow reached $2.745 billion, up 3% from the previous year’s $2.667 billion.
Colgate‑Palmolive lowered its full‑year 2025 organic sales growth guidance to 1‑2% from the prior 2‑4% range, citing sluggish demand and macro‑economic uncertainty. The company also revised its full‑year sales forecast downward to $15.5 billion from the previous $15.8 billion.
Segment performance: Oral, Personal and Home Care generated $3.99 billion in sales, while Pet Nutrition contributed $1.14 billion. The company exited lower‑margin private‑label pet sales, focusing on higher‑margin branded pet products.
Management highlighted that the company is executing its 2030 strategy and Strategic Growth and Productivity Program, aiming to optimize the global supply chain and streamline operations. CEO John Smith said the firm remains confident in its pricing power and brand strength amid inflation and currency volatility.
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