Colgate-Palmolive Company reported a net sales figure of $4.911 billion for the first quarter of 2025, reflecting a 3.1% decline from $5.065 billion in the same period of 2024. The decrease was attributed to a 0.1% decline in volume and a 4.4% negative impact from foreign exchange, which was partially offset by a 1.5% increase in net selling prices. The company's organic sales, which exclude the effects of foreign exchange, acquisitions, and divestments, increased by 1.4% during the quarter. Net income attributable to Colgate-Palmolive rose slightly to $690 million, or $0.85 per diluted share, compared to $683 million, or $0.83 per diluted share, in the prior year.
In terms of operational performance, the Oral, Personal and Home Care segment saw net sales decrease by 4.3% to $3.792 billion, primarily due to a 5.3% negative foreign exchange impact, although organic sales in this segment increased by 1.0%. The Hill’s Pet Nutrition segment, however, experienced a 1.5% increase in net sales to $1.118 billion, driven by a 3.2% rise in net selling prices, despite a 0.3% decline in volume. The company’s share of the global toothpaste market was reported at 40.9%, a slight decrease from the previous year, while its share of the manual toothbrush market increased to 31.9%.
Colgate-Palmolive has made strategic moves to enhance its market position, including the announcement of its acquisition of Care TopCo Pty Ltd, the owner of the Prime100 pet food brand, which is expected to close in the second quarter of 2025. This acquisition will be financed through a combination of debt and cash. Additionally, the company has been focusing on its "2022 Global Productivity Initiative," which concluded at the end of 2024, aimed at reallocating resources towards strategic priorities and improving operational efficiencies.
The company reported a gross profit of $2.987 billion, down from $3.039 billion in the previous year, with a gross profit margin increase to 60.8% from 60.0%. Selling, general and administrative expenses decreased slightly to $1.898 billion, reflecting a 1% reduction from the prior year. The effective income tax rate for the quarter was 23.7%, down from 24.6% in the same period last year. Looking ahead, Colgate-Palmolive anticipates continued challenges from macroeconomic conditions, including inflation and geopolitical tensions, which may impact consumer demand and pricing strategies. The company remains focused on driving organic sales growth and operational efficiencies to navigate these challenges effectively.