Colgate-Palmolive (CL): Mixed Q4 Results, Flat Revenue, Earnings Beat
Key Highlights:
* Q4 CY2024 revenue: $4.94 billion (flat YoY, missed estimates)
* Adjusted EPS: $0.91 (beat estimates)
* Adjusted EBITDA: $1.21 billion (missed estimates)
* Organic revenue growth: 4.3% YoY
* Sales volume growth: 2.5% YoY
* Free cash flow margin: 21.9%
Financial Performance:
Colgate-Palmolive reported mixed financial results for Q4 CY2024. Revenue remained flat at $4.94 billion, falling short of analyst estimates of $4.98 billion. However, the company's non-GAAP profit surpassed expectations, with adjusted EPS of $0.91 outperforming the consensus estimate of $0.89.
Furthermore, Colgate-Palmolive experienced a decline in adjusted EBITDA, which came in at $1.21 billion against analyst estimates of $1.25 billion. Operating margin remained stable at 21.5%, while free cash flow margin improved to 21.9% from 19% in the same quarter last year.
Growth Metrics:
The company's organic revenue growth accelerated to 4.3% YoY, driven by increased sales volume growth of 2.5% YoY. These figures demonstrate Colgate-Palmolive's ability to maintain demand for its products in a challenging market environment.
Key Takeaways:
While Colgate-Palmolive missed revenue estimates, the beat on earnings per share and strong organic growth indicate resilience. However, the decline in adjusted EBITDA raises concerns about the company's ability to control costs and maintain profitability. Investors should carefully evaluate the company's full-year results and future guidance before making investment decisions.