Financial Highlights

2016 Annual Report

(Dollars in Millions Except Per Share Amounts) 2016 2015 Change
Worldwide Net Sales $15,195 $16,034 -5.0%
Organic Sales Growth +4.0%
Gross Profit Margin 60.0% 58.6% +140 basis points
Operating Profit $3,837 $2,789 +38%
Operating Profit Margin 25.3% 17.4% +790 basis points
Net Income Attributable to Colgate-Palmolive Company (1) $2,441 $1,384 +76%
Diluted Earnings Per Share (1) $2.72 $1.52 +79%
Dividends Paid Per Share $1.55 $1.50 +3%
Operating Cash Flow $3,141 $2,949 +7%
Year-end Stock Price $65.44 $66.62 -2%

(1)Net income attributable to Colgate-Palmolive Company and diluted earnings per share in 2016 include a gain from the sale of land in Mexico, charges related to the 2012 Restructuring Program and certain other items. Net income attributable to Colgate-Palmolive Company and diluted earnings per share in 2015 include a gain from the sale of the Company’s laundry detergent business in the South Pacific, a charge related to the deconsolidation of the Company’s Venezuelan operations, charges related to the 2012 Restructuring Program and certain other items.

2016 Net Sales By Geographic Region

2016 Net Sales By Market Maturity

Net Sales

($ billions)

Gross Profit Margin(1)

(% of sales)

Diluted Earnings(2)(3)

($ per share)

Dividends Paid(3)

($ per share)

(1)2013-2016 exclude charges related to the 2012 Restructuring Program. 2012 excludes costs related to the sale of land in Mexico. 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 website and on the Non-GAAP Reconciliation page of this report.

(2)2016 excludes a gain from the sale of land in Mexico, charges related to the 2012 Restructuring Program and certain other items. 2015 excludes a gain from the sale of the Company’s laundry detergent business in the South Pacific, a charge related to the deconsolidation of the Company’s Venezuelan operations, charges related to the 2012 Restructuring Program and certain other items. 2013 and 2014 exclude charges related to the 2012 Restructuring Program, remeasurement charges resulting from devaluations and effective devaluations in Venezuela and certain other items. 2012 excludes charges 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 website and on the Non-GAAP Reconciliation page of this report.

(3)All per share amounts have been restated for the 2013 two-for-one stock split.

Reconciliation Of Non-GAAP Financial Measures

The following is provided to supplement certain financial measures discussed in the letter to shareholders and the financial highlights section of this report both as reported (GAAP) and excluding the impact of certain items (Non-GAAP) as explained below. 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. The Company uses these financial measures internally in its budgeting process, to evaluate segment and overall operating performance and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company’s underlying business performance and trends, 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. This report also discusses organic sales growth, which is net sales growth excluding the impact of foreign exchange, acquisitions, divestments and the deconsolidation of the Company’s Venezuelan operations. For a reconciliation of organic sales growth to net sales growth for full year 2016, see page 40 of the Company’s Annual Report on Form 10-K.

Table scrolls to the right >

(Dollars in Millions Except Per Share Amounts)

Gross Profit
Margin
Operating
Profit
Net
Income
Diluted
EPS
2016
As Reported (GAAP)
2012 Restructuring Program(1)
Mexico Land Sale(2)
Litigation Matters(3)
Tax Matters(4)
Excluding Items (Non-GAAP)
60.0% $3,837 $2,441 $2.72
0.3% 228 168 0.19
(97) (63) (0.07)
17 11 0.01
(35) (0.04)
60.3% $3,985 $2,522 $2.81

(Dollars in Millions Except Per Share Amounts)

Gross Profit
Margin
Operating
Profit
Net
Income
Diluted
EPS
2015
As Reported (GAAP)
Venezuela Deconsolidation(5)
2012 Restructuring Program(1)
Sales of Non-Core Product Lines(6)
Venezuela Remeasurements(7)
Litigation Matters(3)
Tax Matters(4)
Excluding Items (Non-GAAP)
58.6% $2,789 $1,384 $1.52
1,084 1,058 1.16
0.1% 254 183 0.20
(187) (120) (0.13)
34 22 0.02
14 14 0.02
15 0.02
58.7% $3,988 $2,556 $2.81

(Dollars in Millions Except Per Share Amounts)

Gross Profit
Margin
Operating
Profit
Net
Income
Diluted
EPS
2014
As Reported (GAAP)
2012 Restructuring Program(1)
Venezuela Remeasurements(7)
Litigation Matters(3)
Mexico Land Sale(2)
Tax Matters(4)
Excluding Items (Non-GAAP)
58.5% $3,557 $2,180 $2.36
0.2% 286 208 0.23
327 214 0.23
41 41 0.04
4 3
66 0.07
58.7% $4,215 $2,712 $2.93

(Dollars in Millions Except Per Share Amounts)

Gross Profit
Margin
Operating
Profit
Net
Income
Diluted
EPS
2013
As Reported (GAAP)
2012 Restructuring Program(1)
Venezuela Remeasurements(7)
Litigation Matters(3)
Mexico Land Sale(2)
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

(Dollars in Millions Except Per Share Amounts)

Gross Profit
Margin
Operating
Profit
Net
Income
Diluted
EPS
2012
As Reported (GAAP)
2012 Restructuring Program(1)
Mexico Land Sale(2)
Business Realignment Initiatives(8)
Excluding Items (Non-GAAP)
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

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

  • (1)Represents charges related to the 2012 Restructuring Program that began in the fourth quarter of 2012.
  • (2)In 2016, represents a gain on the sale of land in Mexico. In 2012-2014, represents costs related to the sale of land in Mexico.
  • (3)Represents charges for previously disclosed litigation matters.
  • (4)Represents income tax (benefits) charges related to previously disclosed tax matters.
  • (5)Represents a charge resulting from the deconsolidation of the Company’s Venezuelan operations.
  • (6)Represents a gain on the sale of the Company’s laundry detergent business in the South Pacific.
  • (7)In 2015 and 2014, represents remeasurement charges related to effective devaluations in Venezuela. In 2013, represents a charge related to a devaluation in Venezuela.
  • (8)Represents costs associated with various global business realignment and other cost-saving initiatives.

View Form 10-K

Click Here to Download the Annual Report PDF