Colgate-Palmolive Reports Modest Sales Growth and Strategic Acquisitions in Q2 2025

Colgate-Palmolive Company reported its financial results for the second quarter and first half of 2025, revealing a modest increase in net sales and net income compared to the previous year. For the three months ended June 30, 2025, the company achieved net sales of $5.11 billion, a 1% increase from $5.06 billion in the same period of 2024. The increase was primarily driven by a 2% rise in net selling prices, although this was partially offset by a 1% negative impact from foreign exchange fluctuations. The company's net income attributable to Colgate-Palmolive rose to $743 million, up from $731 million a year earlier, resulting in diluted earnings per share of $0.91, compared to $0.89 in the prior year.

In the first half of 2025, Colgate-Palmolive's net sales totaled $10.02 billion, a decrease of 1% from $10.12 billion in the first half of 2024. This decline was attributed to a 2.7% negative impact from foreign exchange, despite a 1.7% increase in net selling prices. The company reported net income of $1.43 billion for the first six months, up from $1.41 billion in the same period last year, with diluted earnings per share increasing to $1.76 from $1.71.

Strategically, Colgate-Palmolive made significant moves during the quarter, including the acquisition of Care TopCo Pty Ltd, which owns the Prime100 pet food business, for approximately $301 million. This acquisition is expected to enhance the company's presence in the growing fresh pet food market in Australia. Additionally, the company announced a new three-year productivity program aimed at optimizing its organizational structure and supply chain, projected to incur pre-tax charges of $200 to $300 million over its duration.

Operationally, the company reported mixed performance across its segments. The Oral, Personal and Home Care segment saw net sales of $3.95 billion, a slight increase of 0.2%, while the Hill’s Pet Nutrition segment reported a 3.8% increase in sales to $1.16 billion. The company’s market share in the global toothpaste market was 41.1%, a decrease from the previous year, while its share in the manual toothbrush market increased to 32.4%. The company continues to focus on enhancing its market position through innovation and strategic investments.

Looking ahead, Colgate-Palmolive anticipates ongoing challenges due to macroeconomic conditions, including inflation and geopolitical tensions, which may impact consumer demand and pricing strategies. The company is closely monitoring these factors and remains committed to its growth strategy, emphasizing organic sales growth and operational efficiencies to navigate the evolving market landscape.