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Colgate-Palmolive Co. (NYSE:CL)

This company has been moved to the archive! The financial data has not been updated since July 28, 2023.

Common-Size Income Statement
Quarterly Data

Colgate-Palmolive Co., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -42.20 -43.14 -44.39 -42.81 -43.04 -41.53 -41.88 -40.58 -40.00 -39.30 -38.88 -38.84 -39.21 -39.83 -39.88 -41.04 -40.30 -41.12 -40.88 -40.99 -40.79 -39.83
Gross profit 57.80% 56.86% 55.61% 57.19% 56.96% 58.47% 58.12% 59.42% 60.00% 60.70% 61.12% 61.16% 60.79% 60.17% 60.12% 58.96% 59.70% 58.88% 59.12% 59.01% 59.21% 60.17%
Selling, general and administrative expenses -36.67 -36.86 -35.28 -36.68 -36.95 -37.30 -36.29 -37.06 -36.81 -36.95 -37.77 -36.55 -35.80 -35.95 -35.17 -36.38 -35.41 -35.14 -34.85 -35.60 -33.45 -34.78
Other income (expense), net -0.93 -0.94 -0.39 0.74 -0.29 -1.61 -0.57 -0.45 0.19 -0.64 -0.95 -0.10 -0.72 -0.98 -1.77 -0.79 -1.32 -1.11 -0.89 -0.68 -1.42 -0.82
Goodwill and indefinite-lived intangible impairment charges 0.00 0.00 -15.58 0.00 0.00 0.00 -12.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating profit 20.20% 19.06% 4.36% 21.26% 19.71% 19.55% 8.29% 21.91% 23.38% 23.11% 22.41% 24.51% 24.28% 23.24% 23.19% 21.79% 22.97% 22.63% 23.38% 22.73% 24.34% 24.56%
Non-service related postretirement costs -0.60 -6.16 -0.32 -0.34 -0.27 -0.86 -0.41 -0.36 -0.42 -0.41 -0.42 -0.36 -0.51 -0.51 -0.72 -0.69 -0.70 -0.64 -0.58 -0.47 -0.59 -0.60
Interest income (expense), net -1.20 -1.13 -1.19 -0.90 -0.69 -0.61 -0.52 -2.22 -0.59 -0.67 -1.32 -0.87 -0.90 -0.88 -0.80 -0.89 -0.98 -1.03 -0.97 -0.94 -0.90 -0.87
Income before income taxes 18.39% 11.76% 2.85% 20.02% 18.76% 18.07% 7.36% 19.32% 22.37% 22.03% 20.68% 23.28% 22.86% 21.85% 21.67% 20.21% 21.29% 20.96% 21.83% 21.33% 22.85% 23.09%
Provision for income taxes -7.32 -3.08 -1.92 -4.71 -4.50 -4.36 -3.09 -3.90 -4.98 -5.27 -4.67 -5.35 -5.54 -3.59 -4.68 -4.25 -5.30 -5.51 -4.96 -6.71 -5.48 -6.15
Net income including noncontrolling interests 11.07% 8.68% 0.93% 15.31% 14.25% 13.71% 4.27% 15.43% 17.39% 16.76% 16.00% 17.94% 17.32% 18.26% 16.99% 15.96% 15.99% 15.45% 16.87% 14.62% 17.37% 16.94%
Net income attributable to noncontrolling interests -0.66 -0.88 -0.82 -1.44 -0.80 -1.00 -0.91 -1.06 -0.89 -1.08 -1.04 -1.13 -1.03 -0.81 -0.97 -1.25 -0.83 -1.03 -0.97 -1.01 -0.98 -1.10
Net income attributable to Colgate-Palmolive Company 10.41% 7.80% 0.11% 13.87% 13.45% 12.71% 3.36% 14.36% 16.50% 15.68% 14.96% 16.81% 16.29% 17.45% 16.01% 14.71% 15.16% 14.42% 15.90% 13.60% 16.39% 15.84%

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

An analysis of the common-size income statement reveals a period of relative stability in profitability margins from 2018 through 2020, followed by increased volatility and margin compression beginning in 2021. The most significant fluctuations in the latter period are attributable to rising input costs and substantial non-recurring impairment charges.

Gross Profitability Trends
Gross profit margins remained consistently high between 58.88% and 61.16% from March 2018 through March 2021. However, a downward trend emerged starting in mid-2021, with gross profit reaching a period low of 55.61% by December 31, 2022. This compression is directly linked to a rise in the cost of sales, which increased from a baseline of approximately 39-40% in earlier years to a peak of 44.39% in December 2022.
Operating Expense Management
Selling, general and administrative expenses exhibited a gradual increase over the analyzed timeframe. While these expenses averaged approximately 34-35% of net sales in 2018, they shifted to a higher range of 36-37% between 2020 and 2023. This suggests a slight increase in operating overhead relative to revenue growth.
Impact of Non-Recurring Charges
Operating and net profit margins were severely impacted by significant impairment charges to goodwill and indefinite-lived intangible assets. These charges occurred in December 2021 (-12.97% of net sales) and December 2022 (-15.58% of net sales). Additionally, a substantial non-service related postretirement cost of -6.16% was recorded in March 31, 2023, further impacting the bottom line during that quarter.
Net Income Analysis
Net income attributable to the company maintained a stable range of 13% to 17% of net sales from March 2018 through September 2021. The subsequent volatility, driven by the aforementioned impairment charges, led to a precipitous decline in net income, reaching a low of 0.11% in December 2022. A recovery phase is observed in the first half of 2023, with net income returning to 10.41% by June 30, 2023, although this remains below the historical pre-2021 averages.

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