04.28.23
Net sales for the Colgate-Palmolive Company increased 8.5% for the first quarter 2023.
Organic sales increased 10.0% with growth in every division and in all four categories. GAAP EPS declined 32% to $0.45; base business EPS declined 1% to $0.73.
GAAP Gross profit margin and base business gross profit margin both decreased 160 basis points to 56.9%, including a negative 90 basis point impact from private label sales resulting from the previously disclosed acquisitions of pet food businesses.
Net cash provided by operations was $735 million for the first three months of 2023. Colgate’s leadership in toothpaste continued with its global market share at 40.2% year to date.
Colgate’s leadership in manual toothbrushes continued with its global market share at 30.6% year to date.
“Our first quarter results provide further proof that our strategy to accelerate growth is working,” said Noel Wallace, chairman, president and CEO. “We began 2023 with positive momentum, with sequential improvement in net and organic sales growth, gross profit margin, advertising spending, operating profit and free cash flow. Net sales increased 8.5%, and organic sales grew 10.0% with growth in every division and in all four of our categories.”
He continued, “Despite continued pressure from raw and packaging material costs during the quarter, gross profit margin improved sequentially versus fourth quarter 2022, which helped fund a 14% increase in advertising in support of our pricing and robust innovation across all categories. We expect to drive further gross margin improvement in the balance of the year through continued strong pricing and the benefits from funding-the-growth and other productivity initiatives. Looking ahead, while we still see uncertainty in the global operating environment, particularly in the back half of the year, we feel well positioned to deliver on our increased 2023 sales and earnings growth expectations and drive value for our stakeholders.”