- Colgate revenue grew by 5.5% in Q2 2022 year-over-year on a reported basis and 9% growth on an organic basis
- Colgate reported GAAP Diluted Earnings per Share (EPS) of $0.72
- Management maintained its Non-GAAP EPS guidance but increased its organic sales growth guidance for 2022
On July 29, 2022, Colgate reported Q2 revenue of $4.5 billion (an increase of 5.5% year-over-year on a reported basis and 9% growth on an organic basis) on GAAP Diluted Earnings per Share (EPS) of $0.72.
Summary: Colgate’s Q2 2022 revenue grew 5.5% on a reported basis compared to the same period in 2021. Colgate had four divisions: North America, Latin America, Europe, Asia Pacific, Africa/Eurasia, and Hill's Pet Nutrition.
- North America division’s net sales grew by 6% vs 2021 (+6% organic sales growth) primarily due to increased sales of oral care, personal care, and home care products.
- Latin America division’s net sales grew by 12.5% vs 2021 (+12.5% organic sales growth) primarily due to increased sales in Colombia, Brazil, Mexico, and Argentina.
- Europe division’s net sales declined by 10% vs 2021 (+0.5% organic sales growth) primarily due to increased sales in Poland and France, partially offset by organic sales fall in the Filorga business.
- Asia Pacific division’s net sales grew by 3.5% vs 2021 (+9% organic sales growth) primarily due to increased sales in Greater China, Australia, and the Philippines.
- Africa/Eurasia division’s net sales decline by 3.5% vs 2021 (+5% organic sales growth) primarily due to increased sales in Turkey and South Africa, partially offset by organic sales declines in Russia and Ukraine.
- Hill's Pet Nutrition division’s net sales grew by 14.5% vs 2021 (+18% organic sales growth) primarily due to increased sales in the US, Europe, Australia, and New Zealand.
The company reported a GAAP operating margin of 20% during Q2 2022, a year-over-year decrease of 300 bps. On the bottom line, the company reported a GAAP Diluted EPS of $0.72, and Non-GAAP earnings came to $0.72 per share.
Guidance:
Colgate expectations for the full year 2022 -
- Revenue growth: The Company expects net sales growth to be at the higher end of 1% to 4% (organic sales growth to be 5% to 7%).
- Gross Profit Margin: The Company expects a decline in GAAP gross profit margin and also a decline in Non-GAAP gross profit margin.
- EPS: The company expects double-digit earnings-per-share growth on a GAAP basis and mid-single-digit earnings-per-share decline on a Non-GAAP basis.