Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Colgate-Palmolive Co., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Cost of sales	(7,719)	(7,046)	(6,454)	(6,368)	(6,313)
Gross profit	10,248)	10,375)	10,017)	9,325)	9,231)
Selling, general and administrative expenses	(6,565)	(6,407)	(6,019)	(5,575)	(5,389)
Global Growth and Efficiency Program	—)	—)	13)	(57)	(88)
Amortization of intangible assets	(80)	(89)	(88)	(62)	(59)
Equity income	12)	12)	12)	9)	10)
Gains from marketable securities and other assets	22)	8)	2)	—)	—)
Indirect tax refunds	14)	5)	(3)	—)	—)
Value-added tax matter in Brazil	—)	26)	—)	30)	—)
Acquisition-related costs	(19)	—)	(2)	(21)	—)
2022 Global Productivity Initiative	(90)	—)	—)	—)	—)
Gain on the sale of land in Asia Pacific	47)	—)	—)	—)	—)
Charges for a change in go-to-market strategy in certain countries	—)	—)	—)	(15)	—)
Other, net	25)	(27)	(47)	(80)	(11)
Other income (expense), net	(69)	(65)	(113)	(196)	(148)
Goodwill and intangible assets impairment charges	(721)	(571)	—)	—)	—)
Operating profit	2,893)	3,332)	3,885)	3,554)	3,694)
Non-service related postretirement costs	(80)	(70)	(74)	(108)	(87)
Interest expense	(167)	(117)	(183)	(192)	(193)
Interest income	14)	17)	19)	47)	50)
Loss on early extinguishment of debt	—)	(75)	—)	—)	—)
Interest income (expense), net	(153)	(175)	(164)	(145)	(143)
Income before income taxes	2,660)	3,087)	3,647)	3,301)	3,464)
Provision for income taxes	(693)	(749)	(787)	(774)	(906)
Net income including noncontrolling interests	1,967)	2,338)	2,860)	2,527)	2,558)
Net income attributable to noncontrolling interests	(182)	(172)	(165)	(160)	(158)
Net income attributable to Colgate-Palmolive Company	1,785)	2,166)	2,695)	2,367)	2,400)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Net Sales: Net sales demonstrated a consistent upward trend from 2018 to 2022, increasing from $15,544 million to $17,967 million. This reflects sustained growth in revenue over the five-year period.
Cost of Sales: The cost of sales also rose steadily each year, from $6,313 million in 2018 to $7,719 million in 2022. The increase in cost outpaced the growth in sales, which impacted gross profit margins.
Gross Profit: Gross profit showed growth from 2018 through 2021, climbing from $9,231 million to $10,375 million, but experienced a slight decline to $10,248 million in 2022, indicating a slight compression in profit margins.
Selling, General and Administrative Expenses: These expenses increased consistently from $5,389 million in 2018 to $6,565 million in 2022, reflecting rising operating costs associated with sales and administrative functions.
Special Items and Adjustments: Various items such as the Global Growth and Efficiency Program, amortization of intangible assets, acquisition-related costs, and the 2022 Global Productivity Initiative impacted expenses intermittently. Notably, impairment charges to goodwill and intangible assets appeared in 2021 and 2022, with significant amounts of $571 million and $721 million respectively, adversely affecting operating results.
Operating Profit: Operating profit increased from 2018 to 2020, peaking at $3,885 million, then declined in 2021 to $3,332 million and further in 2022 to $2,893 million. This decline is attributed partly to rising costs, impairment charges, and other operating expenses.
Interest and Other Income (Expense): Net interest expense remained relatively stable, with minor fluctuations, while other income (expense), net, showed a negative trend overall, particularly peaking negatively in 2019 and then moderating somewhat in subsequent years.
Income Before Income Taxes and Provision for Income Taxes: Income before taxes followed a pattern similar to operating profit, rising until 2020 and declining thereafter to $2,660 million in 2022. The provision for income taxes decreased steadily from $906 million in 2018 to $693 million in 2022, implying some reduction in effective tax expenses or taxable income.
Net Income: Net income attributable to the company increased in the early years, peaking at $2,695 million in 2020, then declined sharply in 2021 and 2022 to $1,785 million. This downward trend reflects the combined impact of rising costs, impairment charges, and decreased operating profitability.

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Colgate-Palmolive Co. (NYSE:CL)

Income Statement