COLGATE PALMOLIVE CO

Three Months

Worldwide Net sales were $5,131 in the third quarter of 2025, up 2.0% from the third quarter of 2024, due to net selling price increases of 2.3% and positive foreign exchange of 1.2%, partially offset by volume declines of 1.5%. The Prime100 acquisition contributed 0.4% to volume. Organic sales (Net sales excluding the impact of foreign exchange, acquisitions and divestments), a non-GAAP financial measure, increased 0.4% in the third 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 $3,989 in the third quarter of 2025, up 2.1% from the third quarter of 2024, due to net selling price increases of 2.1% and positive foreign exchange of 1.3%, partially offset by volume declines of 1.3%. Organic sales in the Oral, Personal and Home Care product segment increased 0.9% in the third quarter of 2025.

The Company’s share of the global toothpaste market was 41.2% 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 32.4% 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 down in North America, Latin America, Asia Pacific and Africa/Eurasia 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 down 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 $1,142 in the third quarter of 2025, up 1.4% from the third quarter of 2024, due to net selling price increases of 2.9% and positive foreign exchange of 1.1%, partially offset by volume declines of 2.6%. The Prime100 acquisition contributed 1.6% to volume. Organic sales in the Hill’s Pet Nutrition segment decreased 1.3% in the third quarter of 2025, including a negative impact from lower private label pet volume (370 bps).

Gross Profit/Margin

Worldwide Gross profit decreased to $3,049 in the third quarter of 2025 compared to $3,074 in the third quarter of 2024. Worldwide Gross profit in the third quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges, Worldwide Gross profit decreased to $3,049 in the third quarter of 2025 compared to $3,083 in the third quarter of 2024, reflecting lower Gross profit margin of $96, partially offset by an increase of $62 resulting from higher Net sales.

Worldwide Gross profit margin decreased to 59.4% in the third quarter of 2025 from 61.1% in the third quarter of 2024. Excluding charges resulting from the 2022 Global Productivity Initiative in the third quarter of 2024, Gross profit margin decreased to 59.4% in the third quarter of 2025 from 61.3% in the third quarter of 2024. This decrease in Gross profit margin was due to significantly higher raw and packaging material costs (600 bps), partially offset by cost savings from the Company’s funding-the-growth initiatives (290 bps), higher pricing (90 bps) and favorable mix (30 bps).

Selling, General and Administrative Expenses

Selling, general and administrative expenses decreased to $1,971 in the third quarter of 2025 from $1,979 in the third quarter of 2024. Selling, general and administrative expenses in the third quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges, Selling, general and administrative expenses decreased to $1,971 in the third quarter of 2025 from $1,976 in the third quarter of 2024, reflecting decreased advertising investment of $20, partially offset by higher overhead expenses of $15.

Selling, general and administrative expenses as a percentage of Net sales decreased by 90 bps to 38.4% in the third quarter of 2025 as compared to 39.3% in the third quarter of 2024. This decrease was due to decreased advertising investment (70 bps) and lower overhead expenses (20 bps), both as a percentage of Net sales. In the third quarter of 2025, advertising investment decreased as a percentage of Net sales to 13.1% from 13.8% in the third quarter of 2024, or 3% in absolute terms, to $674 as compared with $694 in the third quarter of 2024.

Other (Income) Expense, Net

Other (income) expense, net was $19 and $30 in the third quarter of 2025 and 2024, respectively. Other (income) expense, net in the third quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges, Other (income) expense, net was $27 in the third quarter of 2024.

Operating Profit

Operating profit decreased 1% to $1,059 in the third quarter of 2025 from $1,065 in the third quarter of 2024. Operating profit in the third quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges, Operating profit decreased 2% in the third quarter of 2025 to $1,059 from $1,080 in the third quarter of 2024.

Operating profit margin was 20.6% in the third quarter of 2025, a decrease of 60 bps compared to 21.2% in the third quarter of 2024. Excluding charges resulting from the 2022 Global Productivity Initiative in the third quarter of 2024, Operating profit margin in the third quarter of 2025 decreased 90 bps to 20.6% from 21.5% in the third quarter of 2024. This decrease in Operating profit margin was primarily due to a decrease in Gross profit (190 bps), partially offset by a decrease in Selling, general and administrative expenses (90 bps), both as a percentage of Net sales.

Non-Service Related Postretirement Costs

Non-service related postretirement costs were $21 in the third quarter of 2025 as compared to $23 in the third quarter of 2024.

Interest Expense

Interest expense was $67 in the third quarter of 2025 as compared to $74 in the third quarter of 2024.

Interest Income

Interest income was $21 in the third quarter of 2025 as compared to $18 in the third quarter of 2024.

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

Net income attributable to Colgate-Palmolive Company in the third quarter of 2025 decreased to $735 from $737 in the third quarter of 2024, and Earnings per common share on a diluted basis increased to $0.91 per share in the third quarter of 2025 from $0.90 in the third quarter of 2024. Net Income attributable to Colgate-Palmolive Company in the third quarter of 2024 included charges resulting from the 2022 Global Productivity Initiative.

Excluding charges resulting from the 2022 Global Productivity Initiative in 2024, Net income attributable to Colgate-Palmolive Company in the third quarter of 2025 decreased 2% to $735 from $750 in the third quarter of 2024, and Earnings per common share on a diluted basis in the third quarter of 2025 was flat at $0.91 with the third quarter of 2024.

(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 0.4% in the third quarter of 2025 to $999, driven by volume declines of 0.5%, partially offset by net selling price increases of 0.1% and positive foreign exchange of 0.1%. Organic sales in North America decreased 0.5% in the third quarter of 2025.

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

Operating profit in North America decreased 8% in the third quarter of 2025 to $190, or 150 bps to 19.0% 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 (190 bps), partially offset by a decrease in Selling, general and administrative expenses (60 bps), both as a percentage of Net sales. This decrease in Gross profit margin was primarily due to significantly higher raw and packaging material costs (430 bps), partially offset by cost savings from the Company’s funding-the-growth initiatives (240 bps). This decrease in Selling, general and administrative expenses was due to decreased advertising investment.

Latin America

Net sales in Latin America increased 2.0% in the third quarter of 2025 to $1,178, driven by net selling price increases of 3.6% and positive foreign exchange of 0.3%, partially offset by volume declines of 1.9%. Organic sales in Latin America increased 1.7% in the third quarter of 2025. Organic sales growth was led by Mexico and Brazil.

The increase in organic sales in Latin America in the third quarter of 2025 versus the third quarter of 2024 was due to increases in Home Care, Oral Care and Personal Care organic sales. The increase in Home Care was primarily due to organic sales growth in the fabric softener and hand dish categories. The increase in Oral Care was primarily due to organic sales growth in the manual toothbrush category. The increase in Personal Care was primarily due to organic sales growth in the shampoo category.

Operating profit in Latin America decreased 8% in the third quarter of 2025 to $337, or 300 bps to 28.6% 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 (620 bps), partially offset by a decrease in Selling, general and administrative expenses (250 bps), both as a percentage of Net sales. This decrease in Gross profit was primarily due to significantly higher raw and packaging material costs (1,070 bps), partially offset by cost savings from the Company’s funding-the-growth initiatives (320 bps) and higher pricing. This decrease in Selling, general and administrative expenses was due to decreased advertising investment (130 bps) and lower overhead expenses (110 bps).

Europe

Net sales in Europe increased 7.6% in the third quarter of 2025 to $801, driven by volume growth of 0.8%, net selling price increases of 0.4% and positive foreign exchange of 6.4%. Organic sales in Europe increased 1.2% in the third quarter of 2025. Organic sales growth was led by the United Kingdom.

The increase in organic sales in Europe in the third quarter of 2025 versus the third 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 16% in the third quarter of 2025 to $209, or 180 bps to 26.1% as a percentage of Net sales. This increase in Operating profit as a percentage of Net sales was primarily due to a decrease in Gross profit (40 bps), more than offset by a decrease in Selling, general and administrative expenses (200 bps), both as a percentage of Net sales. This decrease in Gross profit was due to significantly higher raw and packaging material costs (340 bps), partially offset by cost savings from the Company’s funding-the-growth initiatives (250 bps), favorable mix (20 bps) and higher pricing. This decrease in Selling, general and administrative expenses was due to decreased advertising investment (100 bps) and lower overhead expenses (100 bps).

Asia Pacific

Net sales in Asia Pacific decreased 1.5% in the third quarter of 2025 to $714, driven by volume declines of 3.5% and negative foreign exchange of 0.5%, partially offset by net selling price increases of 2.5%. Organic sales in Asia Pacific decreased 1.0% in the third quarter of 2025. The organic sales decline was driven by the Greater China region and India, partially offset by organic sales growth in the remaining Asia Pacific geographies.

The decrease in organic sales in Asia Pacific in the third quarter of 2025 versus the third quarter of 2024 was primarily due to a decrease in Oral Care organic sales, primarily in the toothpaste category.

Operating profit in Asia Pacific decreased 6% in the third quarter of 2025 to $188, or 120 bps to 26.2% 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 (60 bps) and an increase in Selling, general and administrative expense (50 bps), both as a percentage of Net sales. This decrease in Gross profit was due to significantly higher raw and packaging material cost (490 bps), partially offset by savings from the Company’s funding-the-growth initiatives (330 bps), higher pricing and favorable mix (10 bps). This increase in Selling, general and administrative expenses was primarily due to higher overhead expenses (90 bps).

Africa/Eurasia

Net sales in Africa/Eurasia increased 6.8% in the third quarter of 2025 to $297, driven by net selling price increases of 7.3% and positive foreign exchange of 0.6%, partially offset by volume declines of 1.1%. Organic sales in Africa/Eurasia increased 6.2% in the third quarter of 2025. Organic sales growth was led by Türkiye.

The increase in organic sales in Africa/Eurasia in the third quarter of 2025 versus the third quarter of 2024 was primarily due to an increase in Oral Care organic sales, primarily in the toothpaste category.

Operating profit in Africa/Eurasia increased 5% in the third quarter of 2025 to $68, while as a percentage of Net sales it decreased by 40 bps to 23.0%. This decrease in Operating profit as a percentage of Net sales was primarily due to a decrease in Gross profit (70 bps), partially offset by a decrease in Other (income) expense, net (40 bps), both as a percentage of Net sales. This decrease in Gross profit was due to significantly higher raw and packaging material costs (550 bps) and unfavorable mix (50 bps), partially offset by higher pricing and cost savings from the Company’s funding-the-growth initiatives (260 bps).

Hill’s Pet Nutrition

Net sales for Hill’s Pet Nutrition increased 1.4% in the third quarter of 2025 to $1,142, driven by net selling price increases of 2.9% and positive foreign exchange of 1.1%, partially offset by volume declines of 2.6%. The Prime100 acquisition contributed 1.6% to volume. Organic sales in Hill’s Pet Nutrition decreased 1.3% in the third quarter of 2025. The organic sales decline was driven by the United States due to the negative impact from lower private label volume (370 bps).

Operating profit in Hill’s Pet Nutrition decreased 1% in the third quarter of 2025 to $255, or 50 bps to 22.4% as a percentage of Net sales. This decrease in Operating profit as a percentage of Net sales was due to an increase in Gross profit (120 bps), more than offset by an increase in Selling, general and administrative expenses (130 bps) and an increase in Other (income) expense, net, (30 bps), all as a percentage of Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives (320 bps), favorable mix (160 bps) and higher pricing, partially offset by significantly higher raw and packaging material costs (480 bps). This increase in Selling, general and administrative expenses was due to higher overhead expenses (110 bps) and increased advertising investment (30 bps).

Corporate

Operating profit (loss) related to Corporate was $(189) in the third quarter of 2025 as compared to $(208) in the third quarter of 2024. In the third quarter of 2024, Corporate Operating profit (loss) included charges resulting from the 2022 Global Productivity Initiative of $15.

Nine months

Worldwide Net sales were $15,152 in the first nine months of 2025 as compared to $15,156 in the first nine months of 2024, due to volume declines of 0.5% and negative foreign exchange of 1.4%, offset by net selling price increases of 1.9%. The Prime100 acquisition contributed 0.2% to volume. Organic sales increased 1.2% in the first nine months of 2025.

Net sales in the Oral, Personal and Home Care product segment were $11,735 in the first nine months of 2025, a decrease of 0.7% as compared to the first nine months of 2024 due to volume declines of 0.4% and negative foreign exchange of 1.8%, partially offset by net selling price increases of 1.6%. Organic sales in the Oral, Personal and Home Care product segment increased 1.2% in the first nine months of 2025.

The increase in organic sales in the first nine months of 2025 versus the first nine 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 skin health and bar soap categories.

Net sales in the Hill’s Pet Nutrition segment were $3,417 in the first nine months of 2025, an increase of 2.2% from the first nine months of 2024 due to net selling price increases of 3.0% and positive foreign exchange of 0.2%, partially offset by volume declines of 0.9%. The Prime100 acquisition contributed 0.9% to volume. Organic sales in the Hill’s Pet Nutrition segment increased 1.2% in the first nine months of 2025, despite a negative impact from lower private label pet volume (300 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 division were as follows:

(1) The impact of the acquisition of the Prime100 pet food business on as reported volume was 0.9% and 0.2% for Pet Nutrition and Total Company, respectively.

In the first nine months of 2025, Operating profit (loss) related to Corporate was $(523) as compared to $(605) in the first nine months of 2024. Corporate Operating profit (loss) for the first nine months of 2025 included a charge resulting from the ERISA litigation matter of $15 and acquisition-related costs of $9. Corporate Operating profit (loss) for the first nine months of 2024 included charges resulting from the 2022 Global Productivity Initiative of $77.

Gross Profit/Margin

Worldwide Gross profit decreased to $9,105 in the first nine months of 2025 from $9,179 in the first nine months of 2024. Worldwide Gross profit in the first nine months of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these charges, Worldwide Gross profit decreased to $9,105 in the first nine months of 2025 from $9,198 in the first nine months of 2024, primarily reflecting lower Gross profit margin of $91.

Worldwide Gross profit margin decreased to 60.1% in the first nine months of 2025 from 60.6% in the first nine months of 2024. Excluding charges resulting from the 2022 Global Productivity Initiative in the first nine months of 2024, Gross profit margin decreased to 60.1% in the first nine months of 2025 from 60.7% in the first nine months of 2024, 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 (70 bps) and favorable mix (30 bps).

Selling, General and Administrative Expenses

Selling, general and administrative expenses were flat at $5,833 in the first nine months of 2025 and 2024. Selling, general and administrative expenses in the first nine months of 2025 included a charge resulting from the ERISA litigation matter. Selling, general and administrative expenses in the first nine 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 $5,817 in the first nine months of 2025 from $5,829 in the first nine months of 2024, reflecting decreased advertising investment of $52, partially offset by higher overhead expenses of $40.

Selling, general and administrative expenses as a percentage of Net sales was flat at 38.5% in the first nine months of 2025 versus the first nine months of 2024. Excluding charges in both periods, as applicable, Selling, general and administrative expenses as a percentage of Net sales decreased to 38.4% in the first nine months of 2025 from 38.5% in the first nine months of 2024. This decrease was due to decreased advertising investment (40 bps), partially offset by higher overhead expenses (30 bps). In the first nine months of 2025, advertising investment decreased as a percentage of Net sales to 13.3% from 13.7% in the first nine months of 2024, or 3% in absolute terms, to $2,020 as compared to $2,072 in the first nine months of 2024.

Other (Income) Expense, Net

Other (income) expense, net was $58 and $141 in the first nine months of 2025 and 2024, respectively. Other (income) expense, net in the first nine months of 2025 included acquisition-related costs. Other (income) expense, net in the first nine 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 $48 in the first nine months of 2025 and $87 in the first nine months of 2024.

Operating Profit

Operating profit increased to $3,214 in the first nine months of 2025 from $3,205 in the first nine months of 2024. Operating profit in the first nine months of 2025 included a charge resulting from the ERISA litigation matter and acquisition-related costs. Operating profit in the first nine months of 2024 included charges resulting from the 2022 Global Productivity Initiative. Excluding these items in both periods as applicable, Operating profit decreased to $3,240 in the first nine months of 2025 from $3,282 in the first nine 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 21.2% in the first nine months of 2025, an increase of 10 bps compared to 21.1% in the first nine months of 2024. Excluding the items described above in both periods, as applicable, Operating profit margin was 21.4% in the first nine months of 2025, a decrease of 30 bps compared to 21.7% in the first nine months of 2024, due to a decrease in Gross profit (60 bps), partially offset by a decrease in Other (income) expense, net (30 bps), both as a percentage of Net sales.

Non-Service Related Postretirement Costs

Non-service related postretirement costs were $116 and $67 in the first nine months of 2025 and 2024, respectively. Non-service related postretirement costs in the first nine months of 2025 included a charge resulting from the ERISA litigation matter. Excluding this charge, Non-service related postretirement costs were $66 in the first nine months of 2025 and $67 in the first nine months of 2024.

Interest Expense

Interest expense was $203 and $226 in the first nine months of 2025 and 2024, respectively.

Interest Income

Interest income was $56 and $51 in the first nine months of 2025 and 2024, respectively.

Income Taxes

The effective income tax rate was 22.8% for the third quarter of 2025 as compared to 21.3% for the third quarter of 2024. As reflected in the table below, the non-GAAP effective income tax rate was 22.8% for the third quarter of 2025 as compared to 21.2% for the third quarter of 2024.

The effective income tax rate was 23.2% for the first nine months of 2025 as compared to 23.4% for the first nine months of 2024. As reflected in the table below, the non-GAAP effective income tax rate was 23.2% for the first nine months of 2025 as compared to 23.1% for the first nine 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 23.3% as compared to 23.7% in the comparable period of 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 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 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. The IRS has recently announced its intent to partially withdraw and revise the proposed regulations. The Company will continue to evaluate any additional guidance and clarification that becomes available.

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 September 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 two unrelated third parties on similar matters. In October 2025, in one of those cases, the relevant U.S. Court of Appeals reversed the U.S. Tax Court’s decision and ruled in favor of the taxpayer. The case involving the other third party is still pending. 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 $162, 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.

(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 nine months of 2025 increased to $2,169 from $2,150 in the comparable 2024 period. Earnings per common share on a diluted basis increased to $2.67 in the first nine months of 2025 from $2.61 in the comparable 2024 period. Net income attributable to Colgate-Palmolive Company in the first nine months of 2025 included a charge resulting from the ERISA litigation matter and acquisition-related costs. Net income attributable to Colgate-Palmolive Company in the first nine 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 nine months of 2025 increased to $2,228 from $2,217 in the first nine months of 2024, and Earnings per common share on a diluted basis increased 2% to $2.74 in the first nine months of 2025 from $2.69 in the first nine months of 2024.

(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.

Restructuring and Related Implementation Charges

Strategic Growth and Productivity Program

On July 31, 2025, the Board approved the Strategic Growth and Productivity Program. The program includes initiatives to better align the Company’s organizational structure to support its strategic initiatives, optimize the Company’s global supply chain to drive agility and efficiencies and simplify and streamline its organizational structure to reduce overhead costs.

The Strategic Growth and Productivity Program is estimated to result in cumulative pre-tax charges, once all initiatives are approved and implemented, totaling between $200 and $300, which is currently estimated to be comprised of the following: employee-related costs, including severance and other termination benefits (65% to 75%) and asset-related costs and other charges (25% to 35%), which include accelerated depreciation, asset write-downs, contract termination and other exit costs. It is estimated that approximately 75% to 85% of the charges will result in cash expenditures and substantially all charges resulting from the program will be incurred by December 31, 2028.

It is estimated that the cumulative pretax charges, once all projects are approved and implemented, will relate to initiatives undertaken in North America (15% to 20%), Latin America (15% to 20%), Europe (10% to 15%), Asia Pacific (10% to 15%), Africa/Eurasia (5% to 10%), Hill’s Pet Nutrition (10% to 15%) and Corporate (10% to 15%).

There were no charges resulting from the Strategic Growth and Productivity Program for the three months ended September 30, 2025.

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 nine months ended September 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 nine months ended September 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 nine months ended September 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 3% to $2,745 in the first nine months of 2025, compared to $2,838 in the first nine months of 2024, primarily due to changes in working capital. The Company’s working capital was (4.0%) as a percentage of Net sales as of September 30, 2025 as compared to (3.6%) as of September 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 $714 of cash in the first nine months of 2025, compared to $454 in the first nine months of 2024. Investing activities in the first nine 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 $387 in the first nine months of 2025, compared to $377 in the first nine 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 $1,895 of cash during the first nine months of 2025, compared to $2,110 used in the first nine months of 2024. The decrease in cash used for financing activities was primarily due to proceeds from the issuance of debt in the first nine months of 2025 and lower share repurchases compared with the comparable period of 2024. This was partially offset by lower proceeds from the exercise of stock options compared with the comparable period of 2024.

Total debt increased to $8,419 as of September 30, 2025, as 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%. During the third quarter of 2025, the Company redeemed at maturity $500 of three-year Senior Notes with a fixed coupon of 3.10%. 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 $1,289 and $936 as of September 30, 2025 and December 31, 2024, respectively. The average daily balances outstanding for commercial paper in the first nine months of 2025 and 2024 were $1,733 and $1,754, 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 $183 during the first nine months of 2025 to $1,279 at September 30, 2025, compared to $1,096 at December 31, 2024, the majority of which ($1,256 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 goodwill and indefinite-lived impairment test, the fair value of the skin health reporting unit and one of the Company’s indefinite-lived trademark intangible assets exceeded their carrying values 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, category growth rates, 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 Strategic Growth and Productivity Program), 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, except as otherwise noted with respect to tariffs, on the basis of the Company’s views and assumptions as of October 31, 2025 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 these 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 these 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 sentiment 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).