Company: CL
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000021665-25-000008
Chunk: 118

Company: COLGATE PALMOLIVE CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 118
---
 of 0.4%. Organic sales in Hill’s Pet Nutrition increased 4.9% in 2024. Organic sales growth was led by the United States despite a negative impact from lower private label pet nutrition sales of 210 bps.

The increase in organic sales in 2024 versus 2023 was due to organic sales growth in the therapeutic and wellness categories.

Operating profit in Hill’s Pet Nutrition increased 20% in 2024 to $965, or 270 bps to 21.5% as a percentage of Net sales. This increase in Operating profit as a percentage of Net sales was primarily due to an increase in Gross profit (410 bps), partially offset by an increase in Selling, general, and administrative expense (180 bps), both as a percentage of Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives (340 bps), higher pricing and favorable mix (50 bps), partially offset by higher raw and packaging material costs (170 bps). This increase in Selling, general and administrative expense was primarily due to increased advertising investment (190 bps).

43

(Dollars in Millions Except Per Share Amounts)

Corporate 20242023% ChangeOperating profit (loss)$(784)$(704)11 %

Corporate operations include Corporate overhead costs, research and development costs, stock-based compensation expense related to stock options and restricted stock unit awards, restructuring and related implementation costs and gains and losses on sales of non-core product lines. The components of Operating profit (loss) for the Corporate segment are presented as follows:202420232022 Global Productivity Initiative$(85)$(27)Product Recall Costs— (25)Corporate overhead costs and other, net(699)(652)Total Corporate Operating profit (loss)$(784)$(704)

44

(Dollars in Millions Except Per Share Amounts)

Restructuring and Related Implementation Charges 

 On January 27, 2022, the Board approved the 2022 Global Productivity Initiative. All initiatives under the program have been implemented and the program concluded on December 31, 2024. The 2022 Global Productivity Initiative resulted in the reallocation of resources towards the Company’s strategic priorities and faster growth businesses, efficiencies in the Company’s operations and the streamlining of its supply chain to reduce structural costs.

Over the course of the 2022 Global Productivity Initiative, the Company incurred total pretax charges of $228 ($186 aftertax) in