COLGATE PALMOLIVE CO

Three Months

Worldwide Net sales were $4,911 in the first quarter of 2025, down 3.1% from the first quarter of 2024, due to volume declines of 0.1% and negative foreign exchange of 4.4%, partially offset by net selling price increases of 1.5%. Organic sales (Net sales excluding the impact of foreign exchange, acquisitions and divestments), a non-GAAP financial measure, increased 1.4% in the first 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 $3,792 in the first quarter of 2025, down 4.3% from the first quarter of 2024, due to negative foreign exchange of 5.3%, partially offset by net selling price increases of 1.0%, while volume was flat. Organic sales in the Oral, Personal and Home Care product segment increased 1.0% in the first quarter of 2025.

The Company’s share of the global toothpaste market was 40.9% on a year-to-date basis, down 0.5 share points from the year ago period, and its share of the global manual toothbrush market was 31.9% on a year-to-date basis, up 0.3 share points from the year ago period. Year-to-date market shares in toothpaste were up in Europe and Africa/Eurasia, flat in Latin America and down in North America and Asia Pacific versus the comparable 2024 period. In the manual toothbrush category, year-to-date market shares were up in North America, Latin America, Europe and Asia Pacific and flat in 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 $1,118 in the first quarter of 2025, up 1.5% from the first quarter of 2024, driven by net selling price increases of 3.2%, partially offset by volume declines of 0.3% and negative foreign exchange of 1.4%. Organic sales in the Hill’s Pet Nutrition segment increased 2.9% in the first quarter of 2025, despite a negative impact from lower private label pet volume (210 bps).

Gross Profit/Margin

Worldwide Gross profit decreased to $2,987 in the first quarter of 2025 compared to $3,039 in the first quarter of 2024, reflecting a decrease of $92 resulting from lower Net sales and an increase of $40 resulting from higher Gross profit margin.

Worldwide Gross profit margin increased to 60.8% in the first quarter of 2025 from 60.0% in the first quarter of 2024. This increase in Gross profit margin was due to cost savings from the Company’s funding-the-growth initiatives (210 bps), higher pricing (60 bps) and favorable mix (50 bps), partially offset by higher raw and packaging material costs (240 bps).

Selling, General and Administrative Expenses

Selling, general and administrative expenses decreased 1% to $1,898 in the first quarter of 2025 compared to $1,916 in the first quarter of 2024. Selling, general and administrative expenses in the first quarter of 2025 included charges related to the ERISA litigation matter. Selling, general and administrative expenses in the first quarter 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 2% to $1,883 in the first quarter of 2025 compared to $1,915 in the first quarter of 2024, largely reflecting lower overhead expenses of $28.

Selling, general and administrative expenses as a percentage of Net sales increased by 80 bps to 38.6% in the first quarter of 2025 compared to 37.8% in the first quarter of 2024. Excluding the charges described above in both periods, as applicable, Selling, general and administrative expenses as a percentage of Net sales increased by 50 bps to 38.3% in the first quarter of 2025 compared to 37.8% in the first quarter of 2024. This increase was due to increased advertising investment (30 bps) and higher overhead expenses (20 bps), both as a percentage of Net sales. In the first quarter of 2025, advertising investment increased as a percentage of Net sales to 13.6% from 13.3% in the first quarter of 2024, while in absolute terms it decreased 1% to $668 as compared with $672 in the first quarter of 2024.

Other (Income) Expense, Net

Other (income) expense, net was $13 and $76 in the first quarter of 2025 and 2024, respectively. Other (income) expense, net in the first quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges, Other (income) expense, net was $13 and $41 in the first quarter of 2025 and 2024, respectively.

Operating Profit

Operating profit increased 3% to $1,076 in the first quarter of 2025 from $1,047 in the first quarter of 2024. Operating profit in the first quarter of 2025 included charges related to the ERISA litigation matter. Operating profit in the first quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges in both periods, as applicable, Operating profit increased 1% to $1,091 in the first quarter of 2025 from $1,083 in the first quarter of 2024.

Operating profit margin was 21.9% in the first quarter of 2025, an increase of 120 bps compared to 20.7% in the first quarter of 2024. Excluding the charges described above in both periods, as applicable, Operating profit margin was 22.2% in the first quarter of 2025, an increase of 80 bps compared to 21.4% in the first quarter of 2024. This increase in Operating profit margin was due to an increase in Gross profit (80 bps) and a decrease in Other (income) expense, net (50 bps), partially offset by an increase in Selling, general and administrative expenses (50 bps), all as a percentage of Net sales.

Non-Service Related Postretirement Costs

Non-service related postretirement costs were $72 in the first quarter of 2025 as compared to $22 in the first quarter of 2024. Non-service related postretirement costs in the first quarter of 2025 included charges related to the ERISA litigation matter. Excluding these charges, Non-service related postretirement costs were $22 in the first quarters of 2025 and 2024.

Interest Expense

Interest expense was $66 in the first quarter of 2025 as compared to $73 in the first quarter of 2024.

Interest Income

Interest income was $15 in the first quarters of 2025 and 2024.

Income Taxes

The effective income tax rate was 23.7% for the first quarter of 2025 as compared to 24.6% for the first quarter of 2024. As reflected in the table below, the non-GAAP effective income tax rate was 23.4% and 24.3% for the first three months of 2025 and 2024, respectively.

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 23.7%, compared to 24.5% in 2024.

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, which 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 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 March 31, 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 $153, 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.

(1)The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

(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 quarter of 2025 increased to $690 from $683 in the first quarter of 2024, and Earnings per common share on a diluted basis increased to $0.85 per share in the first quarter of 2025 from $0.83 in the first quarter of 2024. Net income attributable to Colgate-Palmolive Company in the first quarter of 2025 included charges related to the ERISA litigation matter. Net income attributable to Colgate-Palmolive Company in the first quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative.

Excluding the charges described above in both periods, as applicable, Net income attributable to Colgate-Palmolive Company in the first quarter of 2025 increased 4% to $743 from $713 in the first quarter of 2024, and Earnings per common share on a diluted basis increased 6% to $0.91 in the first quarter of 2025 from $0.86 in the first quarter of 2024.

(1)The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

(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 3.6% in the first quarter of 2025 to $998, driven by volume declines of 2.3%, net selling price decreases of 0.7% and negative foreign exchange of 0.6%. Organic sales in North America decreased 3.0% in the first quarter of 2025. The organic sales decline was driven by the United States.

The decrease in organic sales in North America in the first quarter of 2025 versus the first quarter of 2024 was primarily due to decreases in Personal Care and Home Care organic sales. The decrease in Personal Care was primarily due to organic sales declines in the skin health, underarm protection, bar soap and body wash categories. The decrease in Home Care was primarily due to an organic sales decline in the hand dish category, partially offset by organic sales growth in the surface cleaner category.

Operating profit in North America decreased 8% in the first quarter of 2025 to $196, or 100 bps to 19.6% 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 (30 bps).

Latin America

Net sales in Latin America decreased 8.7% in the first quarter of 2025 to $1,143, driven by negative foreign exchange of 12.7%, partially offset by volume growth of 2.7% and net selling price increases of 1.2%. Organic sales in Latin America increased 4.0% in the first quarter of 2025. Organic sales growth was led by Argentina, Brazil and Mexico.

The increase in organic sales in Latin America in the first quarter of 2025 versus the first quarter of 2024 was primarily 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 an organic sales decline in the bar soap category.

Operating profit in Latin America decreased 14% in the first quarter of 2025 to $348, or 190 bps to 30.4% as a percentage of Net sales. This decrease in Operating profit as a percentage of Net sales was primarily due to a decrease in Gross profit (260 bps), partially offset by a decrease in Other (income) expense, net (70 bps), both as a percentage of Net sales. This decrease in Gross profit was due to significantly higher raw and packaging material costs (570 bps), which included foreign exchange transaction costs, partially offset by cost savings from the Company’s funding-the-growth initiatives (250 bps), higher pricing, and favorable mix (20 bps). The decrease in Other (income) expense, net was primarily due to losses on investments in the first quarter of 2024.

Europe

Net sales in Europe increased 2.5% in the first quarter of 2025 to $690, driven by volume growth of 3.0% and net selling price increases of 2.4%, partially offset by negative foreign exchange of 2.9%. Organic sales in Europe increased 5.4% in the first quarter of 2025. Organic sales growth was led by the United Kingdom, Germany and France.

The increase in organic sales in Europe in the first quarter of 2025 versus the first quarter of 2024 was primarily due to increases in Oral 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 Personal Care was primarily due to organic sales growth in the body wash category.

Operating profit in Europe increased 12% in the first quarter of 2025 to $172, or 220 bps to 24.9% 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 (240 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 (180 bps), higher pricing, and favorable mix (20 bps), partially offset by higher raw and packaging material costs (60 bps).

Asia Pacific

Net sales in Asia Pacific decreased 5.0% in the first quarter of 2025 to $690, driven by volume declines of 3.4% and negative foreign exchange of 1.9%, partially offset by net selling price increases of 0.4%. Organic sales in Asia Pacific decreased 3.1% in the first quarter of 2025. The organic sales decline was driven by the Greater China region and India, partially offset by organic sales growth in the Philippines.

The decrease in organic sales in Asia Pacific in the first quarter of 2025 versus the first quarter of 2024 was primarily due to decreases in Oral Care and Home Care organic sales. The decrease in Oral Care was primarily due to an organic sales decline in the toothpaste category. The decrease in Home Care was primarily due to declines in the fabric softener and hand dish categories.

Operating profit in Asia Pacific decreased 4% in the first quarter of 2025 to $198, while as a percentage of Net sales it increased 20 bps to 28.7%. 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 Other (income) expense, net (20 bps), partially offset by an increase in Selling, general and administrative expenses (130 bps), all as a percentage of Net sales. This increase in Gross profit was primarily due to cost savings from the Company’s funding-the-growth initiatives (260 bps), favorable mix (30 bps) and higher pricing, partially offset by higher raw and packaging material costs (190 bps). This increase in Selling, general and administrative expenses was primarily due to higher overhead expenses (110 bps).

Africa/Eurasia

Net sales in Africa/Eurasia decreased 1.5% in the first quarter of 2025 to $271, driven by volume declines of 2.3% and negative foreign exchange of 3.4%, partially offset by net selling price increases of 4.1%. Organic sales in Africa/Eurasia increased 1.8% in the first quarter of 2025. Organic sales growth was led by the North Africa/Middle East region, partially offset by organic sales declines in South Africa.

The increase in organic sales in Africa/Eurasia in the first quarter of 2025 versus the first quarter of 2024 was primarily 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 body wash and underarm protection categories.

Operating profit in Africa/Eurasia decreased 14% in the first quarter of 2025 to $57, or 290 bps to 21.0% 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 (330 bps) as a percentage of Net sales. This increase in Selling, general and administrative expenses was due to higher overhead expenses (400 bps), partially offset by decreased advertising investment (70 bps).

Hill’s Pet Nutrition

Net sales for Hill’s Pet Nutrition increased 1.5% in the first quarter of 2025 to $1,118, driven by net selling price increases of 3.2%, partially offset by volume declines of 0.3% and negative foreign exchange of 1.4%. Organic sales in Hill’s Pet Nutrition increased 2.9% in the first quarter of 2025. Organic sales growth was led by the United States despite a negative impact from lower private label pet volume (210 bps).

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

Operating profit in Hill’s Pet Nutrition increased 30% in the first quarter of 2025 to $258, or 510 bps to 23.1%. This increase in Operating profit as a percentage of Net sales was primarily due to an increase in Gross profit (460 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 (250 bps), higher pricing, and favorable mix (130 bps), partially offset by higher raw and packaging material costs (50 bps).

Corporate

Operating profit (loss) related to Corporate was $(153) in the first quarter of 2025 as compared to $(196) in the first quarter of 2024.

In the first quarter of 2025, Corporate Operating profit (loss) included charges of $15 related to the ERISA litigation matter. In the first quarter of 2024, Corporate Operating profit (loss) included charges of $36 resulting from the 2022 Global Productivity Initiative.

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 months ended March 31, 2025 is provided below.

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. 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 months ended March 31, 2025 and 2024 is presented within the applicable section of Results of Operations.

The following table provides a quantitative reconciliation of Net sales growth to organic sales growth for the three months ended March 31, 2025:

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

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 12% to $600 in the first three months of 2025, compared to $681 in the first three months of 2024, primarily due to changes in working capital. The Company’s working capital was (3.3%) as a percentage of Net sales as of March 31, 2025 as compared to (2.2%) as of March 31, 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 $159 of cash in the first three months of 2025, compared to $193 used in the first three months of 2024.

Capital expenditures were $124 in the first three months of 2025 compared to $126 in the first three 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 $458 of cash during the first three months of 2025, compared to $361 used in the first three months of 2024. The increase in cash used was primarily due to lower proceeds from exercise of stock options partially offset by lower share repurchases.

Total debt increased to $8,269 as of March 31, 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%. The redemption was financed with commercial paper borrowings.

Domestic and foreign commercial paper outstanding was $1,170 and $936 as of March 31, 2025 and December 31, 2024, respectively. The average daily balances outstanding for commercial paper in the first three months of 2025 and 2024 were $1,478 and $1,383, respectively. The Company classifies commercial paper 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.

In February 2025, the Company announced that it has agreed to acquire Care TopCo Pty Ltd, owner of the Prime100 pet food brand. The transaction has received regulatory approval and will close in the second quarter of 2025. It will be financed with a combination of debt and cash.

Cash and cash equivalents increased $16 during the first three months of 2025 to $1,112 at March 31, 2025, compared to $1,096 at December 31, 2024, the majority of which ($1,072 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, 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 higher interest rates, and its 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).