Company: CL
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000021665-25-000008
Chunk: 117

Company: COLGATE PALMOLIVE CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 117
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$1,095 $1,083 1.2 %Operating profit$253 $254 — %% of Net sales23.1 %23.5 %(40)bps

Net sales in Africa/Eurasia increased 1.2% in 2024 to $1,095, driven by volume growth of 7.6% and net selling price increases of 5.7%, partially offset by negative foreign exchange of 12.1%. Organic sales in Africa/Eurasia increased 13.3% in 2024. Organic sales growth was led by Türkiye, Nigeria and the North Africa/Middle East region.

The increase in organic sales in 2024 versus 2023 was primarily due to increases in Oral Care and Home Care organic sales. The increase in Oral Care was primarily due to organic sales growth in the toothpaste and manual toothbrush categories. The increase in Home Care was primarily due to organic sales growth in the bleach category. 

Operating profit in Africa/Eurasia was flat at $253 versus 2023, and as a percentage of Net sales decreased by 40 bps to 23.1%. This decrease in Operating profit as a percentage of Net sales was due to an increase in Gross profit (140 bps), more than offset by an increase in Selling, general, and administrative expense (120 bps) and an increase in Other (income) expense, net (60 bps), all as a percentage of Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives (250 bps), higher pricing and favorable mix (30 bps), partially offset by significantly higher raw and packaging material costs (340 bps), which included foreign exchange transaction costs. This increase in Selling, general and administrative expense was due to higher overhead expense (70 bps) and increased advertising investment (50 bps).

42

(Dollars in Millions Except Per Share Amounts)

Hill’s Pet Nutrition 20242023% ChangeNet sales$4,483 $4,290 4.5 %Operating profit$965 $806 20 %% of Net sales21.5 %18.8 %270 bps

Net sales for Hill’s Pet Nutrition increased 4.5% in 2024 to $4,483, driven by volume growth of 0.8% and net selling price increases of 4.1%, partially offset by negative foreign exchange