Financial Highlights

(Dollars in Millions Except Per Share Amounts)

2013 2012 Change
Worldwide Net Sales $17,420 $17,085 +2.0%
Unit Volume     +5.0%
Gross Profit Margin 58.6% 58.1% +50 basis points
Operating Profit $3,556 $3,889 -9%
Operating Profit Margin 20.4% 22.8% -240 basis points
Net Income Attributable to Colgate-Palmolive Company(1) $2,241 $2,472 -9%
Net Income Attributable to Colgate-Palmolive Company Percent to Sales 12.9% 14.5% -160 basis points
Diluted Earnings Per Share(1)(2) $2.38 $2.57 -7%
Dividends Paid Per Share(2) $1.33 $1.22 +9%
Operating Cash Flow $3,204 $3,196 -
Number of Registered Common Shareholders 26,900 27,600 -3%
Number of Common Shares Outstanding (in millions) 920 936 -2%
Year-end Stock Price $65.21 $52.27 +25%

Highlights

  • Worldwide net sales increased 2.0% to an all-time record level and organic sales (net sales excluding foreign exchange, acquisitions and divestments) grew 6.0%.
  • The strong organic sales growth was led by robust growth in emerging markets.
  • Gross profit margin increased 50 basis points to 58.6%.
  • Advertising behind Colgate's brands increased 6% versus 2012, driving strong market share performance worldwide.
  • The quarterly dividend increased by 10% in 2013, following a 7% increase in 2012.
  • (1) Net income attributable to Colgate-Palmolive Company and diluted earnings per share in 2013 include aftertax charges of $424 million ($0.46 per diluted share) related to the 2012 Restructuring Program and certain other items. Net income attributable to Colgate-Palmolive Company and diluted earnings per share in 2012 include aftertax charges of $102 million ($0.11 per diluted share) related to the 2012 Restructuring Program and certain other items. A complete reconciliation between reported results (GAAP) and results excluding these items (Non-GAAP), including a description of such items, is available on Colgate's web site and the Non-GAAP Reconciliation page of this report.
  • (2) All share and per share amounts have been restated to reflect the two-for-one stock split in 2013.

Financial Charts

Net Sales
($ millions)

2009

$15,327

2010

$15,564

2011

$16,734

2012

$17,085
 

2013

$17,420

Advertising
($ millions)

2009

$1,534

2010

$1,656

2011

$1,734

2012

$1,792
 

2013

$1,891

Dividends Paid(1)
(per common share)

2009

$0.86

2010

$1.02

2011

$1.14

2012

$1.22
 

2013

$1.33

Gross Profit Margin And Additional Information(2)
(% of sales)

2009

58.8%

2010

59.1%

2011

57.3%

57.6%(2)

2012

58.1%

58.3%(2)
 

2013

58.6%

58.8%(2)

Operating Profit And Additional Information(3)
($ millions)

2009

$3,615

2010

$3,489

$3,796(3)

2011

$3,841

$3,858(3)

2012

$3,889

$4,023(3)
 

2013

$3,556

$4,140(3)

Diluted Earnings Per Share And Additional Information(1)(3)

2009

$2.18

2010

$2.16

$2.42(3)

2011

$2.47

$2.51(3)

2012

$2.57

$2.68(3)
 

2013

$2.38

$2.84(3)
  • (1) All per share amounts have been restated for the two-for-one stock split in 2013.
  • (2) 2013 excludes charges related to the 2012 Restructuring Program and certain other 2013 items. 2012 excludes costs related to the sale of land in Mexico. 2011 excludes costs associated with various business realignment and other cost-saving initiatives. A complete reconciliation between reported results (GAAP) and results excluding these items (Non-GAAP), including a description of such items, is available on Colgate's web site and the Non-GAAP Reconciliation page of this report.
  • (3) 2013 and 2012 exclude charges related to the 2012 Restructuring Program and certain other 2013 and 2012 items. 2011 excludes costs associated with various business realignment and other cost-saving initiatives and certain other 2011 items. 2010 excludes a one-time charge related to the transition to hyperinflationary accounting in Venezuela and certain other 2010 items. A complete reconciliation between reported results (GAAP) and results excluding these items (Non-GAAP), including a description of such items, is available on Colgate's web site and the Non-GAAP Reconciliation page of this report.

Geographic Highlights (% of sales)

North America

  • Net sales increased 3.5% in 2013 and unit volume grew 3.5%.

  • Operating profit increased 14%.

  • Colgate Optic White, Colgate Total and Colgate Max Fresh Cool Scrub toothpastes, Colgate 360° Optic White and Colgate 360° Total Advanced Floss Tip bristles manual toothbrushes, Colgate Optic White and Colgate Total Advanced Pro-Shield mouthwashes, Palmolive Soft Touch dish liquid and Suavitel fabric conditioner contributed to volume growth in the U.S.

Latin America

  • Net sales decreased 0.5% in 2013 and unit volume grew 5.5%.

  • Operating profit decreased 5%.

  • Colgate Luminous White and Colgate Total Professional Gum Health toothpastes, Colgate 360° Luminous White and Colgate Triple Action manual toothbrushes, Colgate Luminous White and Colgate Plax Fresh Tea mouthwashes, Protex for Men bar soap and shower gel, Lady Speed Stick and Speed Stick deodorants and Axion Oats dish liquid contributed to volume growth throughout the region.

Europe / South Pacific

  • Net sales declined 0.5% in 2013 and unit volume grew 1.5%.

  • Operating profit increased 8%.

  • Colgate Max White One and Colgate Total Pro Interdental toothpastes, Colgate 360° Max White One and Colgate Total Pro Interdental manual toothbrushes, Colgate Max White One and Colgate Plax Complete Care mouthwashes, Sanex Surgras and Palmolive Mediterranean Moments shower gels and Soupline Perfect Glide fabric conditioner contributed to volume growth throughout the region.

Asia

  • Net sales increased 9.0% in 2013 and unit volume grew 10.5%.

  • Operating profit increased 13%.

  • Colgate Optic White, Colgate Total Pro Gum Health and Darlie Expert White toothpastes, Colgate Slim Soft Charcoal and Colgate Slim Soft Raised Tip manual toothbrushes, Colgate Optic White and Colgate Plax Fruity Fresh mouthwashes and Protex Men Power shower gel contributed to volume growth throughout the region.

Africa / Eurasia

  • Net sales increased 1.5% in 2013 and unit volume grew 8.0%.

  • Operating profit was even with the prior year.

  • Colgate Optic White, Colgate Total Pro Interdental and Colgate Altai Herbs toothpastes, Colgate Slim Soft Charcoal and Colgate 360° Optic White manual toothbrushes, Colgate Optic White and Colgate Plax Herbal mouthwashes and Palmolive Gourmet Spa and Protex for Men shower gels contributed to volume growth throughout the region.

Hill's Pet Nutrition

  • Net sales increased 2.5% in 2013 and unit volume grew 1.5%.

  • Operating profit decreased 4%.

  • Veterinary recommendations for the Hill's brand remain high worldwide.

  • The recent launch of our natural pet food brand, Hill's Ideal Balance, contributed to volume growth in the U.S.

  • New products succeeding globally include Hill's Prescription Diet Metabolic and the relaunch of Hill's Science Diet with natural ingredients and improved taste.

Reconciliation Of Non-GAAP Financial Measures

The following is provided to supplement certain Non-GAAP financial measures discussed in the letter to shareholders and the financial highlights section of this report both as reported (on a GAAP basis) and excluding the impact of certain items (Non-GAAP) as explained below. Management believes these Non-GAAP financial measures provide useful supplemental information to investors regarding the performance of the Company's ongoing operations. The Company uses these financial measures internally in its budgeting process and as a factor in determining compensation. While the Company believes that these Non-GAAP financial measures are useful in evaluating the Company's business, 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.

Chart scrolls to the right >

(Dollars in Millions Except Per Share Amounts)

2013

Gross Profit Margin Operating Profit Net Income Diluted EPS

2012

Gross Profit Margin Operating Profit Net Income Diluted EPS
As Reported (GAAP)
2012 Restructing Program (1)
Venezuela Devaluation Charge (2)
French Competition Law Matters (3)
Mexico Land Sale (4)
Business Realignment Initiatives (5)
Excluding Items (Non-GAAP)
58.6% $3,556 $2,241 $2.38
0.2% 371 278 0.30
172 111 0.12
23 23 0.03
18 12 0.01
58.8% $4,140 $2,665 $2.84
58.1% $3,889 $2,472 $2.57
89 70 0.07
0.2% 24 18 0.02
21 14 0.02
58.3% $4,023 $2,574 $2.68

 

2011

Gross Profit Margin Operating Profit Net Income Diluted EPS

2010

Gross Profit Margin Operating Profit Net Income Diluted EPS
As Reported (GAAP)
French Competition Law Matters (3)
Mexico Land Sale (4)
Business Realignment Initiatives (5)
Gain on Sale of Non-Core Product Lines (6)
Venezuela Hyperinflationary Charge (7)
Termination Benefits (8)
Tax Initiatives (9)
Excluding Items (Non-GAAP)
57.3% $3,841 $2,431 $2.47
21 21 0.02
13 9 0.01
0.3% 190 147 0.15
(207) (135) (0.14)
57.6% $3,858 $2,473 $2.51
59.1% $3,489 $2,203 $2.16
(50) (30) (0.03)
271 271 0.26
86 61 0.06
(31) (0.03)
59.1% $3,796 $2,474 $2.42

Note: All per share amounts have been restated to reflect the two-for-one stock split in 2013.

  • (1) Charges relate to the 2012 Restructuring Program that began in the fourth quarter of 2012.
  • (2) In 2013, the Company recorded a $111 million one-time aftertax charge related to the remeasurement of the net monetary assets included in the local Venezuelan balance sheet as a result of the currency devaluation on February 9, 2013.
  • (3) In 2013, the Company recorded a $23 million aftertax charge associated with a competition law matter in France related to the home care and personal care sectors. In 2011, the Company recorded a $21 million aftertax charge associated with a competition law matter in France related to a divested detergent business.
  • (4) Represents costs associated with the sale of land in Mexico.
  • (5) Represents costs associated with various business realignment and other cost-saving initiatives.
  • (6) In 2011, the Company recorded a $135 million aftertax gain on sale of a non-core laundry detergent business in Colombia. In 2010, the Company recorded a $30 million aftertax gain on sale of non-core product lines.
  • (7) In 2010, the Company recorded a $271 million one-time charge related to the transition to hyperinflationary accounting in Venezuela.
  • (8) In 2010, the Company recorded a $61 million aftertax charge for termination benefits.
  • (9) In 2010, the Company recorded a $31 million benefit related to the reorganization of an overseas subsidiary.

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