Colgate-Palmolive reports 1.4% sales rise in FY25
The performance underscores the company’s sustained profitability streak of over 20 years, even amid one-time charges.
USA – Colgate-Palmolive announced its full-year 2025 financial results, reporting a modest 1.4% increase in both net sales and organic sales, reaching a record USD 20.38 billion in net sales despite challenges like divestitures and foreign exchange pressures.
This growth was partly offset by a 0.9% negative impact from exiting the private label pet food business, which also contributed a 20 basis-point drag on 2026 organic sales guidance.
Full-year net income attributable to Colgate-Palmolive fell to USD 2.13 billion from USD 2.89 billion in 2024, primarily due to a significant USD 794 million non-cash impairment charge on goodwill and intangible assets in its skin health business, driven by underperformance in China and slower growth.
Noel Wallace, Chairman, President and Chief Executive Officer, stated, “We are pleased to have exited 2025 with accelerated growth momentum on both the top and bottom lines, even in the face of sluggish category growth in many markets.”
“Through the successful execution of our 2025 strategy, we have grown our company significantly over the last five years despite many challenges. Our new 2030 strategy builds on that success”
The fourth quarter reflected this sharply, with a net loss of USD 5 million (USD 0.05 per diluted share) compared to a USD 779 million profit (USD 0.79 per share) in Q4 2024, driven by the impairment.
In the fourth quarter, net sales rose 5.8% to USD 5.23 billion, fueled by pricing actions and volume gains in key segments like oral care and pet nutrition.
Organic sales grew 1.4%, including a 2.7% pricing increase, but tempered by lower private label pet volumes; gross profit margin held at 60.2% (USD 3.15 billion), while base business operating profit (non-GAAP) climbed 3% to $1.11 billion.
Operational cash flow reached a record USD 4.20 billion for the year, yielding USD 3.63 billion in free cash flow before dividends, with USD 2.90 billion returned to shareholders via dividends and repurchases.
Management forecasts 1% to 4% organic sales growth for 2026, emphasizing innovation, supply chain efficiencies, and resilience against macroeconomic headwinds. Base business EPS growth is targeted at 6% to 8% in constant currency.
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