COLGATE PALMOLIVE CO

Three Months

Worldwide Net sales were $5,110 in the second quarter of 2025, up 1.0% from the second quarter of 2024, due to net selling price increases of 2.0%, partially offset by negative foreign exchange of 1.0%, while volume was flat. The Prime100 acquisition contributed 0.2% to volume. Organic sales (Net sales excluding the impact of foreign exchange, acquisitions and divestments), a non-GAAP financial measure, increased 1.8% in the second quarter of 2025. A reconciliation of net sales growth to organic sales growth is provided under “Non-GAAP Financial Measures” below.

Net sales in the Oral, Personal and Home Care product segment were $3,954 in the second quarter of 2025, up 0.2% from the second quarter of 2024, due to net selling price increases of 1.7%, partially offset by negative foreign exchange of 1.5% while volume was flat. Organic sales in the Oral, Personal and Home Care product segment increased 1.7% in the second quarter of 2025.

The Company’s share of the global toothpaste market was 41.1% on a year-to-date basis, down 0.6 share points from the year ago period, and its share of the global manual toothbrush market was 32.4% on a year-to-date basis, up 0.4 share points from the year ago period. Year-to-date market shares in toothpaste were up in Europe, flat in Asia Pacific and Africa/Eurasia and down in North America and Latin America versus the comparable 2024 period. In the manual toothbrush category, year-to-date market shares were up in North America, Europe and Asia/Pacific and flat in Latin America and Africa/Eurasia versus the comparable 2024 period. For additional information regarding market shares, see “Market Share Information” below.

Net sales in the Hill’s Pet Nutrition segment were $1,157 in the second quarter of 2025, up 3.8% from the second quarter of 2024, due to volume growth of 0.1%, net selling price increases of 2.9% and positive foreign exchange of 0.8%. The Prime100 acquisition contributed 1.0% to volume. Organic sales in the Hill’s Pet Nutrition segment increased 2.0% in the second quarter of 2025, despite a negative impact from lower private label pet volume (310 bps).

Gross Profit/Margin

Worldwide Gross profit increased to $3,069 in the second quarter of 2025 compared to $3,066 in the second quarter of 2024. Worldwide Gross profit in the second quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges, Worldwide Gross profit decreased to $3,069 in the second quarter of 2025 compared to $3,075 in the second quarter of 2024, reflecting lower Gross profit margin of $37, partially offset by an increase of $31 resulting from higher Net sales.

Worldwide Gross profit margin decreased to 60.1% in the second quarter of 2025 from 60.6% in the second quarter of 2024. Excluding charges resulting from the 2022 Global Productivity Initiative in the second quarter of 2024, Gross profit margin decreased to 60.1% in the second quarter of 2025 from 60.8% in the second quarter of 2024. This decrease in Gross profit margin was due to significantly higher raw and packaging material costs (420 bps), partially offset by cost savings from the Company’s funding-the-growth initiatives (250 bps), higher pricing (80 bps) and favorable mix (20 bps).

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased 1% to $1,963 in the second quarter of 2025 compared to $1,939 in the second quarter of 2024. Selling, general and administrative expenses in the second quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges, Selling, general and administrative expenses increased 1% to $1,963 in the second quarter of 2025 compared to $1,937 in the second quarter of 2024, reflecting higher overhead expenses of $54, partially offset by decreased advertising investment of $28.

Selling, general and administrative expenses as a percentage of Net sales increased by 10 bps to 38.4% in the second quarter of 2025 as compared to 38.3% in the second quarter of 2024. This increase was due to higher overhead expenses (80 bps), partially offset by decreased advertising investment (70 bps), both as a percentage of Net sales. In the second quarter of 2025, advertising investment decreased as a percentage of Net sales to 13.3% from 14.0% in the second quarter of 2024, or 4% in absolute terms, to $678 as compared with $706 in the second quarter of 2024.

Other (Income) Expense, Net

Other (income) expense, net was $26 and $35 in the second quarter of 2025 and 2024, respectively. Other (income) expense, net in the second quarter of 2025 included acquisition-related costs. Other (income) expense, net in the second quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these items in both periods, as applicable, Other (income) expense, net was $17 in the second quarter of 2025 and $20 in the second quarter of 2024.

Operating Profit

Operating profit decreased 1% to $1,080 in the second quarter of 2025 from $1,092 in the second quarter of 2024. Operating profit in the second quarter of 2025 included acquisition-related costs. Operating profit in the second quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these items in both periods, as applicable, Operating profit decreased 3% to $1,089 in the second quarter of 2025 from $1,118 in the second quarter of 2024.

Operating profit margin was 21.1% in the second quarter of 2025, a decrease of 50 bps compared to 21.6% in the second quarter of 2024. Excluding the items described above in both periods, as applicable, Operating profit margin was 21.3% in the second quarter of 2025, a decrease of 80 bps compared to 22.1% in the second quarter of 2024. This decrease in Operating profit margin was due to a decrease in Gross profit (70 bps) and an increase in Selling, general and administrative expenses (10 bps), both as a percentage of Net sales.

Non-Service Related Postretirement Costs

Non-service related postretirement costs were $23 and $22 in the second quarter of 2025 and 2024, respectively.

Interest Expense

Interest expense was $71 and $78 in the second quarter of 2025 and 2024, respectively.

Interest Income

Interest income was $21 and $18 in the second quarter of 2025 and 2024, respectively.

Net Income Attributable to Colgate-Palmolive Company and Earnings Per Share

Net income attributable to Colgate-Palmolive Company in the second quarter of 2025 increased to $743 from $731 in the second quarter of 2024, and Earnings per common share on a diluted basis increased to $0.91 per share in the second quarter of 2025 from $0.89 in the second quarter of 2024. Net income attributable to Colgate-Palmolive Company in the second quarter of 2025 included acquisition-related costs. Net income attributable to Colgate-Palmolive Company in the second quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative.

Excluding the items described above in both periods, as applicable, Net income attributable to Colgate-Palmolive Company in the second quarter of 2025 remained flat at $750 versus $753 in the second quarter of 2024, and Earnings per common share on a diluted basis increased 1% to $0.92 in the second quarter of 2025 from $0.91 in the second quarter of 2024.

Note: Tables may not sum due to rounding

(2)The impact of non-GAAP adjustments on diluted earnings per share may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

Net Sales and Operating Profit by Segment

Oral, Personal and Home Care

North America

Net sales in North America decreased 1.0% in the second quarter of 2025 to $1,027, driven by volume declines of 0.4%, net selling price decreases of 0.5% and negative foreign exchange of 0.1%. Organic sales in North America decreased 0.9% in the second quarter of 2025. The organic sales decline was driven by the United States.

The decrease in organic sales in North America in the second quarter of 2025 versus the second quarter of 2024 was due to decreases in Home Care and Personal Care organic sales, partially offset by an increase in Oral Care organic sales. The decrease in Home Care was primarily due to an organic sales decline in the hand dish category. The decrease in Personal Care was primarily due to an organic sales decline in the skin health category. The increase in Oral Care was primarily due to organic sales growth in the toothpaste and manual toothbrush categories.

Operating profit in North America decreased 9% in the second quarter of 2025 to $194, or 170 bps to 18.9% as a percentage of Net sales. This decrease in Operating profit as a percentage of Net sales was due to a decrease in Gross profit (110 bps) and an increase in Other (income) expense, net (110 bps), partially offset by a decrease in Selling, general and administrative expenses (50 bps), all as a percentage of Net sales. This decrease in Gross profit was due to significantly higher raw and packaging material costs (280 bps) and lower pricing, partially offset by cost savings from the Company’s funding-the-growth initiatives (170 bps) and favorable mix (10 bps). This increase in Other (income) expense, net was primarily due to insurance recoveries in the second quarter of 2024. This decrease in Selling, general and administrative expenses was due to decreased advertising investment (120 bps), partially offset by higher overhead expenses (70 bps).

Latin America

Net sales in Latin America decreased 4.8% in the second quarter of 2025 to $1,207, driven by negative foreign exchange of 8.2%, partially offset by volume growth of 0.4% and net selling price increases of 3.0%. Organic sales in Latin America increased 3.4% in the second quarter of 2025. Organic sales growth was led by Mexico and Argentina.

The increase in organic sales in Latin America in the second quarter of 2025 versus the second quarter of 2024 was primarily due to increases in Oral Care and Home Care organic sales. The increase in Oral Care was primarily due to organic sales growth in the toothpaste and manual toothbrush categories. The increase in Home Care was primarily due to organic sales growth in the fabric softener and surface cleaner categories.

Operating profit in Latin America decreased 12% in the second quarter of 2025 to $367, or 250 bps to 30.4% as a percentage of Net sales. This decrease in Operating profit as a percentage of Net sales was due to a decrease in Gross profit (400 bps), partially offset by a decrease in Selling, general and administrative expenses (150 bps), both as a percentage of Net sales. This decrease in Gross profit was due to significantly higher raw and packaging material costs (780 bps), partially offset by cost savings from the Company’s funding-the-growth initiatives (270 bps) and higher pricing. This decrease in Selling, general and administrative expenses was primarily due to decreased advertising investment (190 bps).

Europe

Net sales in Europe increased 7.8% in the second quarter of 2025 to $738, driven by positive foreign exchange of 5.7% and net selling price increases of 2.2%, partially offset by volume declines of 0.2%. Organic sales in Europe increased 2.0% in the second quarter of 2025. Organic sales growth was led by the United Kingdom.

The increase in organic sales in Europe in the second quarter of 2025 versus the second quarter of 2024 was primarily due to an increase in Oral Care organic sales. The increase in Oral Care was primarily due to organic sales growth in the toothpaste category.

Operating profit in Europe increased 9% in the second quarter of 2025 to $184, or 40 bps to 25.0% as a percentage of Net sales. This increase in Operating profit as a percentage of Net sales was primarily due to an increase in Gross profit (50 bps) as a percentage of Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives (240 bps), higher pricing and favorable mix (30 bps), partially offset by significantly higher raw and packaging material costs (330 bps).

Asia Pacific

Net sales in Asia Pacific increased 0.8% in the second quarter of 2025 to $687, driven by net selling price increases of 1.6% and positive foreign exchange of 0.9%, partially offset by volume decline of 1.6%. Organic sales in Asia Pacific were flat in the second quarter of 2025 with declines in India and the Greater China region offset by organic sales growth in the remaining Asia Pacific geographies.

Organic sales were flat in Oral, Personal and Home Care in the second quarter of 2025 versus the second quarter of 2024.

Operating profit in Asia Pacific decreased 4% in the second quarter of 2025 to $187, or 150 bps to 27.2% as a percentage of Net sales. This decrease in Operating profit as a percentage of Net sales was primarily due to an increase in Selling, general and administrative expenses (110 bps) as a percentage of Net sales. This increase in Selling, general and administrative expenses was due to increased advertising investment (70 bps) and higher overhead expenses (40 bps).

Africa/Eurasia

Net sales in Africa/Eurasia increased 8.0% in the second quarter of 2025 to $295, driven by volume growth of 4.3%, net selling price increases of 3.4% and positive foreign exchange of 0.2%. Organic sales in Africa/Eurasia increased 7.7% in the second quarter of 2025. Organic sales growth was broad based across the region.

The increase in organic sales in Africa/Eurasia in the second quarter of 2025 versus the second quarter of 2024 was due to increases in Oral Care, Home Care and Personal Care organic sales. The increase in Oral Care was primarily due to organic sales growth in the toothpaste category. The increase in Home Care was primarily due to organic sales growth in the fabric softener and bleach categories. The increase in Personal Care was primarily due to organic sales growth in the body wash category.

Operating profit in Africa/Eurasia increased 1% in the second quarter of 2025 to $65, while as a percentage of Net sales it decreased 140 bps to 22.0%. This decrease in Operating profit as a percentage of Net sales was primarily due to a decrease in Gross profit (120 bps) as a percentage of Net sales. This decrease in Gross profit was due to significantly higher raw and packaging material costs (360 bps) and unfavorable mix (50 bps), partially offset by cost savings from the Company’s funding-the-growth initiatives (170 bps) and higher pricing.

Hill’s Pet Nutrition

Net sales for Hill’s Pet Nutrition increased 3.8% in the second quarter of 2025 to $1,157, driven by volume growth of 0.1%, net selling price increases of 2.9% and positive foreign exchange of 0.8%. The Prime100 acquisition contributed 1.0% to volume. Organic sales in Hill’s Pet Nutrition increased 2.0% in the second quarter of 2025. Organic sales growth was led by the United States and Europe, despite a negative impact from lower private label volume (310 bps).

The increase in organic sales in the second quarter of 2025 was due to organic sales growth in the therapeutic and wellness categories.

Operating profit in Hill’s Pet Nutrition increased 13% in the second quarter of 2025 to $264, or 180 bps to 22.9% as a percentage of Net sales. This increase in Operating profit as a percentage of Net sales was due to an increase in Gross profit (130 bps) and a decrease in Selling, general and administrative expenses (50 bps), both as a percentage of Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives (280 bps), higher pricing and favorable mix (90 bps), partially offset by significantly higher raw and packaging material costs (350 bps). This decrease in Selling, general and administrative expenses was due to decreased advertising investment (30 bps) and lower overhead expenses (20 bps).

Corporate

Operating profit (loss) related to Corporate was $(181) in the second quarter of 2025 as compared to $(201) in the second quarter of 2024. In the second quarter of 2025, Corporate Operating profit (loss) included acquisition-related costs of $9. In the second quarter of 2024, Corporate Operating profit (loss) included charges resulting from the 2022 Global Productivity Initiative of $27.

Six Months

Worldwide Net sales were $10,021 in the first six months of 2025, down 1.0% as compared to the first six months of 2024 due to negative foreign exchange of 2.7%, partially offset by net selling price increases of 1.7%, while volume was flat. The Prime100 acquisition contributed 0.1% to volume. Organic sales increased 1.6% in the first six months of 2025.

Net sales in the Oral, Personal and Home Care product segment were $7,746 in the first six months of 2025, a decrease of 2.0% as compared to the first six months of 2024 due to negative foreign exchange of 3.4%, partially offset by net selling price increases of 1.3% while volume was flat. Organic sales in the Oral, Personal and Home Care product segment increased 1.3% in the first six months of 2025.

The increase in organic sales in the first six months of 2025 versus the first six months of 2024 was due to an increase in Oral Care organic sales, partially offset by a decrease in Personal Care organic sales. The increase in Oral Care was primarily due to organic sales growth in the toothpaste and manual toothbrush categories. The decrease in Personal Care was primarily due to organic sales declines in the bar soap and skin health categories.

Net sales in the Hill’s Pet Nutrition segment were $2,275 in the first six months of 2025, an increase of 2.6% from the first six months of 2024 due to net selling price increases of 3.0%, partially offset by volume declines of 0.1% and negative foreign exchange of 0.3%. The Prime100 acquisition contributed 0.5% to volume. Organic sales in the Hill’s Pet Nutrition segment increased 2.5% in the first six months of 2025, despite a negative impact from lower private label volume (250 bps).

Net Sales and Operating Profit by Segment

Net sales and Operating profit by segment were as follows:

Net sales and Organic sales change by segment were as follows:

(1) The impact of the acquisition of the Prime100 pet food business on as reported volume was 0.5% and 0.1% for Pet Nutrition and Total Company, respectively.

(2) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of July 1, 2024

In the first six months of 2025, Operating profit (loss) related to Corporate was $(334) as compared to $(397) in the first six months of 2024. Corporate Operating profit (loss) for the six months ended June 30, 2025 included charges resulting from the ERISA litigation matter of $15 and acquisition-related costs of $9. Corporate Operating profit (loss) for the six months ended June 30, 2024 included charges resulting from the 2022 Global Productivity Initiative of $63.

Gross Profit/Margin

Worldwide Gross profit decreased to $6,056 in the first six months of 2025 from $6,105 in the first six months of 2024. Worldwide Gross profit in the first six months of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges, Worldwide Gross profit decreased to $6,056 in the first six months of 2025 from $6,114 in the first six months of 2024, primarily reflecting a decrease of $61 resulting from lower Net sales.

Worldwide Gross profit margin increased to 60.4% in the first six months of 2025 from 60.3% in the first six months of 2024. Excluding charges resulting from the 2022 Global Productivity Initiative in the first six months of 2024, Gross profit margin was flat at 60.4%. Gross profit margin was impacted by significantly higher raw and packaging material costs (340 bps), which were offset by cost savings from the Company’s funding-the-growth initiatives (230 bps), higher pricing (70 bps) and favorable mix (30 bps).

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased to $3,861 in the first six months of 2025 from $3,855 in the first six months of 2024. Selling, general and administrative expenses in the first six months of 2025 included charges related to the ERISA litigation matter. Selling, general and administrative expenses in the first six months of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges in both periods, as applicable, Selling, general and administrative expenses decreased to $3,845 in the first six months of 2025 from $3,852 in the first six months of 2024, reflecting decreased advertising investment of $32, partially offset by higher overhead expenses of $25.

Selling, general and administrative expenses as a percentage of Net sales increased to 38.5% in the first six months of 2025 from 38.1% in the first six months of 2024. Excluding charges in both periods, as applicable, Selling, general and administrative expenses as a percentage of Net sales increased to 38.4% in the first six months of 2025 from 38.0% in the first six months of 2024. This increase was due to higher overhead expenses (50 bps), partially offset by decreased advertising investment (20 bps). In the first six months of 2025, advertising investment decreased as a percentage of Net sales to 13.4% from 13.6% in the first six months of 2024, or 2% in absolute terms, to $1,346 as compared with $1,378 in the first six months of 2024.

Other (Income) Expense, Net

Other (income) expense, net was $39 and $111 in the first six months of 2025 and 2024, respectively. Other (income) expense, net in the first six months of 2025 included acquisition-related costs. Other (income) expense, net in the first six months of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these items in both periods, as applicable, Other (income) expense, net was $30 in the first six months of 2025 and $60 in the first six months of 2024.

Operating Profit

Operating profit increased 1% to $2,156 in the first six months of 2025 from $2,139 in the first six months of 2024. Operating profit in the first six months of 2025 included charges related to the ERISA litigation matter and acquisition-related costs. Operating profit in the first six months of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these items in both periods, as applicable, Operating profit decreased to $2,181 in the first six months of 2025 from $2,202 in the first six months of 2024, primarily due to a decrease in Gross profit, partially offset by a decrease in Other (income) expense, net.

Operating profit margin was 21.5% in the first six months of 2025, an increase of 40 bps compared to 21.1% in the first six months of 2024. Excluding the items described above in both periods, as applicable, Operating profit margin was flat at 21.8% in the first six months of 2025.

Non-Service Related Postretirement Costs

Non-service related postretirement costs were $95 and $44 in the first six months of 2025 and 2024, respectively. Non-service related postretirement costs in the first six months of 2025 included charges related to the ERISA litigation matter. Excluding these charges, Non-service related postretirement costs were $45 in the first six months of 2025 and $44 in the first six months of 2024.

Interest Expense

Interest expense was $137 and $151 in the first six months of 2025 and 2024, respectively.

Interest Income

Interest income was $35 and $33 in the first six months of 2025 and 2024, respectively.

Income Taxes

The effective income tax rate was 23.2% for the second quarter of 2025 as compared to 24.1% for the second quarter of 2024. As reflected in the table below, the non-GAAP effective income tax rate was 23.2% for the second quarter of 2025 as compared to 23.8% for the second quarter of 2024.

The effective income tax rate was 23.5% for the first six months of 2025 as compared to 24.4% for the first six months of 2024. As reflected in the table below, the non-GAAP effective income tax rate was 23.4% for the first six months of 2025 as compared to 24.1% for the first six months of 2024.

The quarterly provision for income taxes is determined based on the Company’s estimated full year effective income tax rate adjusted by the amount of tax attributable to infrequent or unusual items that are separately recognized on a discrete basis in the income tax provision in the quarter in which they occur. The Company’s current estimate of its full year effective income tax rate before discrete period items is 23.5%, compared to 24.3% in 2024.

On July 4, 2025, new U.S. tax legislation was signed into law (known as the “One Big Beautiful Bill Act” or “OBBBA”) which makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. In addition, the OBBBA makes changes to certain U.S. corporate tax provisions, many of which are generally not effective until 2026. The Company is currently evaluating the impact of the OBBBA, but does not expect it will have a material impact on its Consolidated Financial Statements.

In the third quarter of 2023, the Internal Revenue Service (the “IRS”) issued a notice giving taxpayers temporary relief from the effects of certain U.S. tax regulations that were issued in December 2021 and place greater restrictions on foreign taxes that are creditable against U.S. taxes on foreign source income. This notice allowed taxpayers to defer the application of these new regulations through the end of 2023. In December 2023, the IRS issued further guidance modifying this temporary relief period to the date that a notice or other guidance withdrawing or modifying the temporary relief is issued. The Company will recognize the impact, if any, in the period in which the temporary relief is withdrawn or modified.

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was enacted, which among other things, implements a 15% minimum tax on book income of certain large corporations effective for years beginning after December 31, 2022. Subsequent to enactment, the U.S. Treasury Department and the IRS released proposed regulations relating principally to this 15% minimum tax. Based on the Company’s analysis, these proposed regulations have not had and, if finalized in their current form, are not expected to have an impact on the Company’s Consolidated Financial Statements. However, the Company will continue to evaluate any additional guidance and clarification that becomes available.

Additionally, on December 15, 2022, the 27 member states of the European Union (“EU”) reached an agreement on a minimum level of taxation for certain large corporations to pay a minimum corporate tax rate of 15% in every jurisdiction in which they operate. This agreement, which is known as the Minimum Tax Directive (part of the “Pillar II Model Rules”), was supposed to be transposed into the laws of all EU member states by December 31, 2023. Most member states complied, while some were granted extensions of time. In addition, many other jurisdictions outside the EU have implemented a similar minimum tax regime consistent with the policy of the Pillar II Model Rules. Detailed regulations of these minimum tax regimes are still being considered in certain countries and, in some cases, enactment and timing is still uncertain. Based on current legislation and available guidance, apart from a significant additional compliance burden, Pillar II did not have a material impact on the Company’s Consolidated Financial Statements as of June 30, 2025 and the Company does not believe it will have a material impact going forward. However, as these rules and related regulations are revised and implemented, the Company will evaluate the impact, if any, on its Consolidated Financial Statements.

The Company has ongoing federal, state and international income tax audits in various jurisdictions and evaluates uncertain tax positions that may be challenged by local tax authorities and not fully sustained. All U.S. federal income tax returns through December 31, 2013 have been audited by the IRS and there are limited matters which the Company plans to appeal for years 2010 through 2013. One such matter relates to the IRS assessment of taxes on the Company by imputing income on certain activities within one of our international operations, which is also under audit for the years 2014 through 2018. There were U.S. Tax Court rulings during 2023 in favor of the IRS against unrelated third parties on similar matters. Despite the U.S. Tax Court rulings, the Company continues to believe that the tax assessment against the Company is without merit. While there can be no assurances, the Company believes this matter will ultimately be decided in favor of the Company. The amount of tax plus interest for the years 2010 through 2018 is estimated to be approximately $160, which is not included in the Company’s uncertain tax positions. In May 2024, the IRS initiated an audit for the years 2019 through 2021.

Note: Tables may not sum due to rounding.

(2)The impact of non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income before income taxes and Provision for income taxes.

Net Income Attributable to Colgate-Palmolive Company and Earnings Per Share

Net income attributable to Colgate-Palmolive Company in the first six months of 2025 increased to $1,433 from $1,414 in the comparable 2024 period. Earnings per common share on a diluted basis increased to $1.76 in the first six months of 2025 from $1.71 in the comparable 2024 period. Net income attributable to Colgate-Palmolive Company in the first six months of 2025 included charges related to the ERISA litigation matter and acquisition-related costs. Net income attributable to Colgate-Palmolive Company in the first six months of 2024 included charges resulting from the 2022 Global Productivity Initiative.

Excluding the items described above in both periods, as applicable, Net income attributable to Colgate-Palmolive Company in the first six months of 2025 increased 2% to $1,493 from $1,467 in the first six months of 2024, and Earnings per common share on a diluted basis increased 3% to $1.83 in the first six months of 2025 from $1.78 in the first six months of 2024.

Note: Tables may not sum due to rounding.

(2)The impact of non-GAAP adjustments on diluted earnings per share may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

Non-GAAP Financial Measures

This Quarterly Report on Form 10-Q discusses certain financial measures on both a GAAP and a non-GAAP basis. The Company uses the non-GAAP financial measures described below internally in its budgeting process, to evaluate segment and overall operating performance and as a factor in determining compensation. The Company believes that these non-GAAP financial measures are useful in evaluating the Company’s underlying business performance and trends; however, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies.

Net sales growth (GAAP) and organic sales growth (Net sales growth excluding the impact of foreign exchange, acquisitions and divestments) (non-GAAP) are discussed in this Quarterly Report on Form 10-Q. Management believes the organic sales growth measure provides investors and analysts with useful supplemental information regarding the Company’s underlying sales trends by presenting sales growth excluding the external factor of foreign exchange, as well as the impact of acquisitions and divestments, as applicable. A reconciliation of organic sales growth to Net sales growth for the three and six months ended June 30, 2025 is provided below.

Gross profit, Gross profit margin, Selling, general and administrative expenses, Selling, general and administrative expenses as a percentage of Net sales, Other (income) expense, net, Operating profit, Operating profit margin, Non-service related postretirement costs, Effective income tax rate, Net income attributable to Colgate-Palmolive Company and Earnings per share on a diluted basis are discussed in this Quarterly Report on Form 10-Q both on a GAAP basis and excluding, as applicable, charges resulting from the ERISA litigation matter and the 2022 Global Productivity Initiative and acquisition-related costs. These non-GAAP financial measures exclude items that, either by their nature or amount, management would not expect to occur as part of the Company’s normal business on a regular basis, such as restructuring charges, charges for certain litigation and tax matters, acquisition-related costs, gains and losses from certain divestitures and certain other unusual, non-recurring items. Investors and analysts use these financial measures in assessing the Company’s business performance, and management believes that presenting these financial measures on a non-GAAP basis provides them with useful supplemental information to enhance their understanding of the Company’s underlying business performance and trends. These non-GAAP financial measures also enhance the ability to compare period-to-period financial results. A reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measures for the three and six months ended June 30, 2025 and 2024 is presented within the applicable section of Results of Operations.

The following tables provide a quantitative reconciliation of Net sales growth to organic sales growth for the three and six months ended June 30, 2025:

Liquidity and Capital Resources

The Company expects cash flow from operations and debt issuances will be sufficient to meet foreseeable business operating and recurring cash needs (including for debt service, dividends, capital expenditures, share repurchases and acquisitions). The Company believes its strong cash generation and financial position should continue to allow it broad access to global credit and capital markets.

Cash Flow

Net cash provided by operations decreased 11% to $1,484 in the first six months of 2025, compared to $1,671 in the first six months of 2024, primarily due to changes in working capital. The Company’s working capital was (2.9%) as a percentage of Net sales as of June 30, 2025 as compared to (2.5%) as of June 30, 2024. The Company defines working capital as the difference between current assets (excluding Cash and cash equivalents and marketable securities, the latter of which is reported in Other current assets) and current liabilities (excluding short-term debt).

Investing activities used $560 of cash in the first six months of 2025, compared to $304 in the first six months of 2024. Investing activities in the first six months of 2025 included the Company’s acquisition of Care TopCo Pty Ltd, the owner of the Prime100 pet food business, as discussed in Note 4, Acquisitions to the Condensed Consolidated Financial Statements.

Capital expenditures were $232 in the first six months of 2025 compared to $243 in the first six months of 2024. Capital expenditures for 2025 are expected to be approximately 3.0% of Net sales. The Company continues to focus its capital spending on projects that are expected to yield high aftertax returns.

Financing activities used $867 of cash during the first six months of 2025, compared to $1,206 used in the first six months of 2024. The decrease in cash used for financing activities was primarily due to proceeds from the issuance of debt in the first six months of 2025 and lower share repurchases compared with the comparable period of 2024, partially offset by higher repayments of commercial paper compared with the comparable period of 2024.

Total debt increased to $8,758 as of June 30, 2025, compared to $7,949 as of December 31, 2024. During the first quarter of 2024, the Company redeemed at maturity $500 of ten-year Medium-Term Notes with a fixed coupon of 3.25%. During the second quarter of 2025, the Company redeemed at maturity $130 of 30-year Medium-Term Notes with a fixed coupon of 7.60%. These redemptions were financed with commercial paper borrowings.

In April 2025, the Company issued $500 of five-year Senior Notes at a fixed coupon rate of 4.20%. The Company’s debt issuances support the Company’s capital structure objectives of funding its business and growth initiatives while minimizing its risk-adjusted cost of capital.

Domestic and foreign commercial paper outstanding was $1,115 and $936 as of June 30, 2025 and December 31, 2024, respectively. The average daily balances outstanding for commercial paper in the first six months of 2025 and 2024 were $1,694 and $1,688, respectively. The Company classifies commercial paper and certain long-term debt that is subject to a put option as long-term debt when it has the intent and ability to refinance such obligations on a long-term basis, including, if necessary, by utilizing its available lines of credit.

Certain of the agreements with respect to the Company’s bank borrowings contain financial and other covenants as well as cross-default provisions. Noncompliance with these requirements could ultimately result in the acceleration of amounts owed. The Company is in full compliance with all such requirements and believes the likelihood of noncompliance is remote. Refer to Note 5, Long Term Debt and Credit Facilities to the Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 for further information about the Company’s long-term debt and credit facilities.

In the first quarter of 2025, the Company increased the quarterly common stock dividend to $0.52 per share from $0.50 per share previously, effective in the second quarter of 2025.

Cash and cash equivalents increased $119 during the first six months of 2025 to $1,215 at June 30, 2025, compared to $1,096 at December 31, 2024, the majority of which ($1,182 and $1,059, respectively) was held by the Company’s foreign subsidiaries.

For additional information regarding liquidity and capital resources, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Intangible Assets

As of the date of the annual impairment test of indefinite-lived intangible assets, the fair value of one of the Company’s indefinite-lived trademark intangible assets exceeded its carrying value by less than 20%.

Given the inherent uncertainties of estimating the future cash flows, the impact of interest rates and inflation on macroeconomic conditions, actual results may differ from management’s current estimates which could potentially result in impairment charges in future periods.

Market Share Information

Management uses market share information as a key indicator to monitor business health and performance. References to market share in this Quarterly Report on Form 10-Q are based on a combination of consumption and market share data provided by third-party vendors, primarily Nielsen, and internal estimates. All market share references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company competes and purchases data (excluding Venezuela from all periods).

Market share data is subject to limitations on the availability of up-to-date information. In particular, market share data is currently not generally available for certain retail channels, such as eCommerce or certain discounters. The Company measures year-to-date market shares from January 1 of the relevant year through the most recent period for which market share data is available, which typically reflects a lag time of one or two months. The Company believes that the third-party vendors we use to provide data are reliable, but we have not verified the accuracy or completeness of the data or any assumptions underlying the data. In addition, market share information calculated by the Company may be different from market share information calculated by other companies due to differences in category definitions, the use of data from different countries, internal estimates and other factors.

Cautionary Statement on Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 or by the SEC in its rules, regulations and releases that set forth anticipated results based on management’s current plans and assumptions. Such statements may relate, for example, to sales or volume growth, net selling price increases, organic sales growth, profit or profit margin levels, earnings per share levels, financial goals, the impact of foreign exchange, the impact of tariffs, the impact of geopolitical conflicts and tensions, such as the war in Ukraine, the conflict in the Middle East, tensions between China and Taiwan and global trade relations, cost-reduction plans (including the Productivity Program approved on July 31, 2025), tax rates, interest rates, new product introductions, digital capabilities, commercial investment levels, acquisitions, divestitures, share repurchases or legal or tax proceedings, among other matters. These statements are made on the basis of the Company’s views and assumptions as of this time and the Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, except as required by law or by the rules and regulations of the SEC. Moreover, the Company does not nor does any other person assume responsibility for the accuracy and completeness of those statements. The Company cautions investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. Actual events or results may differ materially because of factors that affect international businesses and global economic conditions, as well as matters specific to the Company and the markets it serves, including the uncertain macroeconomic and political environment in different countries, including as a result of inflation and high interest rates, and their effect on consumer confidence and spending, foreign currency rate fluctuations, exchange controls, import restrictions, tariffs, sanctions, price or profit controls, labor relations, changes in foreign or domestic laws or regulations or their interpretation, political and fiscal developments, including changes in trade, tax and immigration policies, increased competition and evolving competitive practices, the ability to operate and respond effectively during a pandemic, epidemic or widespread public health concern, the ability to manage disruptions in our global supply chain and/or key office facilities, the ability to manage the availability and cost of raw and packaging materials and logistics costs, the ability to maintain or increase selling prices as needed, changes in the policies of retail trade customers, the emergence of alternative retail channels, the growth of eCommerce and the rapidly changing retail landscape, the ability to develop innovative new products and successfully adopt new technologies (such as artificial intelligence), the ability to continue lowering costs and operate in an agile manner, the ability to maintain the security of our information and operational technology systems from a cybersecurity incident or data breach, the ability to address the effects of climate change and achieve our sustainability and social impact goals, the ability to complete acquisitions and divestitures as planned, the ability to successfully integrate acquired businesses, the ability to attract and retain key employees, the uncertainty of the outcome of legal proceedings, whether or not the Company believes they have merit, and the ability to address uncertain or unfavorable global economic conditions, including inflation, disruptions in the credit markets and tax matters. For information about these and other factors that could impact the Company’s business and cause actual results to differ materially from forward-looking statements, refer to the Company’s filings with the SEC (including, but not limited to, the information set forth under the captions “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings with the SEC).