Business Wire | Jan 28, 2022 06:55AM EST

Colgate Announces 4th Quarter and Full Year 2021 Results

Jan. 28, 2022

NEW YORK--(BUSINESS WIRE)--Jan. 28, 2022--Colgate-Palmolive Company (NYSE:CL) today reported results for fourth quarter and full year 2021. Noel Wallace, Chairman, President and Chief Executive Officer, commented, "We were pleased to finish 2021 with a continuation of our strong growth momentum, particularly in our oral care and pet nutrition businesses, both of which delivered an acceleration in net and organic sales growth in full year 2021 versus 2020. We have delivered organic sales growth at or above our targeted range of 3% to 5% for three consecutive years, which gives us confidence that our investments behind our strategic priorities are delivering sustainable, profitable growth.

"As we begin 2022, our number one priority remains keeping Colgate people safe and healthy. There is still much uncertainty stemming from the COVID-19 pandemic, supply chain disruptions, increases in raw material and logistics costs and volatility in consumer demand and currencies. With costs expected to remain elevated in 2022, our funding the growth and revenue growth management initiatives, including higher pricing, will be more important than ever. We are encouraged that our investments in innovation, advertising and digital transformation are paying off and feel confident that we are well positioned to continue to deliver sustainable, profitable growth in 2022 and beyond."

Full Year

* Net sales increased 6.0%, Organic sales* increased 4.5% * On a GAAP basis, EPS declined 19% to $2.55 driven by goodwill and indefinite-lived intangible asset impairment charges in the fourth quarter related to the Filorga skin health business primarily due to the impact of the COVID-19 pandemic on the duty-free, travel retail and pharmacy channels * On a Base Business basis, EPS* grew 5% to $3.21, in line with the Company's full year guidance

Full Year Total Company Results (GAAP)

($ in millions except per share amounts) 2021 2020 Change

Net Sales $17,421 $16,471 +6.0 %

EPS (diluted) $2.55 $3.14 -19 %





Full Year Total Company Results (Base Business - Non-GAAP)*

($ in millions except per share amounts) 2021 2020 Change

Organic Sales Growth +4.5 %

Base Business EPS (diluted) $3.21 $3.06 +5 %

*Indicates a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures" later in this release for definitions of non-GAAP financial measures and to "Table 7 - Geographic Sales Analysis Percentage Changes" and "Table 9 - Non-GAAP Reconciliations" included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Fourth Quarter

* Net sales increased 2.0%, Organic sales* increased 3.0% * On a GAAP basis, EPS declined 76% to $0.18 driven by goodwill and indefinite-lived intangible asset impairment charges related to the Filorga skin health business primarily due to the impact of the COVID-19 pandemic on the duty-free, travel retail and pharmacy channels * On a Base Business basis, EPS* grew 3% to $0.79 * GAAP Gross profit margin and Base Business Gross profit margin* both decreased 300 basis points to 58.1% * Net cash provided by operations was $3,325 year to date * Colgate's leadership in toothpaste continued with its global market share at 39.4% year to date * Colgate's leadership in manual toothbrushes continued with its global market share at 30.9% year to date

Fourth Quarter Total Company Results (GAAP)

($ in millions except per share amounts) 2021 2020 Change

Net Sales $4,403 $4,324 +2.0 %

EPS (diluted) $0.18 $0.75 -76 %





Fourth Quarter Total Company Results (Base Business - Non-GAAP)*

($ in millions except per share amounts) 2021 2020 Change

Organic Sales Growth +3.0 %

Base Business EPS (diluted) $0.79 $0.77 +3 %

*Indicates a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures" later in this release for definitions of non-GAAP financial measures and to "Table 6 - Geographic Sales Analysis Percentage Changes" and "Table 8 - Non-GAAP Reconciliations" included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Goodwill and Intangible Asset Impairment

During the fourth quarter, the Company took a non-cash, after-tax charge of $518 million to adjust the carrying values of goodwill and a trade name intangible asset related to the Filorga skin health business. The impairment was due primarily to the impact of the COVID-19 pandemic on the Filorga business as a result of government restrictions and reduced consumer mobility, which negatively impacted consumption in the duty-free, travel retail and pharmacy channels. The Company continues to believe in the strength of the Filorga brand and is confident about its growth opportunities.

2022 Global Productivity Initiative

Separately, the Company announced the 2022 Global Productivity Initiative. The program is intended to reallocate resources toward the Company's strategic priorities and faster growth businesses, drive efficiencies in the Company's operations and streamline the Company's supply chain to reduce structural costs. Implementation of the 2022 Global Productivity Initiative is projected to result in cumulative pre-tax charges, once all phases are approved and implemented, totaling between $200 and $240 million. Annualized pre-tax savings are projected to be in the range of $90 to $110 million. The Company intends to execute the majority of the Global Productivity Initiative in the current calendar year.

Full Year 2022 Guidance

Based on current spot rates:

* The Company expects net sales growth to be 1% to 4% including a low-single-digit negative impact from foreign exchange. * The Company expects organic sales growth to be within its long-term targeted range of 3% to 5%. * On a GAAP basis, the Company expects gross profit margin expansion, increased advertising investment and double-digit earnings-per-share growth. * On a non-GAAP (Base Business) basis, the Company expects gross profit margin expansion, increased advertising investment and low to mid-single-digit earnings-per-share growth.

Divisional Performance

The following are comments about divisional performance for fourth quarter 2021 versus the year ago period. See attached "Table 6 - Geographic Sales Analysis Percentage Changes" and "Table 5 - Segment Information" for additional information on net sales and operating profit by division.

Fourth Quarter Sales Growth By Division (% change 4Q 2021 vs. 4Q 2020)

Net Organic As Reported Organic Pricing FX Sales Sales* Volume Volume

North America -1.0% -1.5% -1.0% -1.0% -0.5% +0.5%

Latin America +3.5% +6.0% -1.0% -1.0% +7.0% -2.5%

Europe -6.0% -3.5% -3.0% -3.0% -0.5% -2.5%

Asia Pacific +0.5% +1.5% +0.5% +0.5% +1.0% -1.0%

Africa/Eurasia +2.0% +3.0% -5.5% -5.5% +8.5% -1.0%

Hill's +12.0% +13.0% +7.0% +7.0% +6.0% -1.0%



Total Company +2.0% +3.0% -% -% +3.0% -1.0%

*Indicates a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures" later in this release for definitions of non-GAAP financial measures and to "Table 6 - Geographic Sales Analysis Percentage Changes" included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Fourth Quarter Operating Profit By Division ($ in millions)

Change in basis % Change vs % to Net 4Q 2021 points vs 4Q 2020 4Q 2020 Sales % to Net Sales

North America $168 -28% 18.1% -690

Latin America $238 -4% 26.0% -190

Europe $158 -7% 22.6% -30

Asia Pacific $204 -5% 28.2% -160

Africa/Eurasia $50 56% 20.1% +700

Hill's $241 18% 27.2% +120



Total Company, As Reported $365 -62% 8.3% -1,410

Total Company, Base Business* $936 -3% 21.3% -110

*Indicates a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures" later in this release for definitions of non-GAAP financial measures and to "Table 8 - Non-GAAP Reconciliations" included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

North America (21% of Company Sales)

* The organic sales decline was driven by personal care and home care, as consumer demand in certain categories that had benefited from COVID-19-related demand declined year-over-year. * In the United States, Colgate's share of the toothpaste market is 34.3% year to date and its share of the manual toothbrush market is 39.5% year to date. * The decrease in Operating profit as a percentage of Net sales was primarily due to significantly higher raw and packaging material costs and higher overhead expenses, driven by higher logistics costs, partially offset by cost savings from the Company's funding-the-growth initiatives and decreased advertising investment.

Latin America (21% of Company Sales)

* Organic sales growth was led by Brazil, Argentina, Colombia and Mexico. * The decrease in Operating profit as a percentage of Net sales was primarily due to significantly higher raw and packaging material costs, partially offset by cost savings from the Company's funding-the-growth initiatives, higher pricing, a valued-added tax refund and decreased advertising investment.

Europe (16% of Company Sales)

* Organic sales declines in the Filorga duty-free business and in Germany and France were partially offset by organic sales growth in Poland. * The decrease in Operating profit as a percentage of Net sales was primarily due to significantly higher raw and packaging material costs and higher overhead expenses, primarily due to higher logistics costs, partially offset by decreased advertising investment and cost savings from the Company's funding-the-growth initiatives.

Asia Pacific (16% of Company Sales)

* Organic sales growth was led by Indonesia, India and the Philippines. * The decrease in Operating profit as a percentage of Net sales was primarily due to significantly higher raw and packaging material costs and higher overhead expenses, driven by higher logistics costs, partially offset by cost savings from the Company's funding-the-growth initiatives, a gain on an investment, decreased advertising investment and higher pricing.

Africa/Eurasia (6% of Company Sales)

* Organic sales growth was led by South Africa, Turkiye and the Saudi Arabia/Gulf States region. * The increase in Operating profit as a percentage of Net sales was primarily due to decreased advertising investment, lower overhead expenses (despite significant increases in logistics costs), higher pricing and cost savings from the Company's funding-the-growth initiatives, partially offset by significantly higher raw and packaging material costs.

Hill's Pet Nutrition (20% of Company Sales)

* Organic sales growth was led by the United States and Europe. * The increase in Operating profit as a percentage of Net sales was primarily due to higher pricing, cost savings from the Company's funding-the-growth initiatives, decreased advertising investment and lower overhead expenses (despite significant increases in logistics costs), partially offset by significantly higher raw and packaging material costs.

Webcast Information

At 8:30 a.m. ET today, Colgate will host a conference call regarding fourth quarter and full year results. To access this call as a webcast, please go to Colgate's website at www.colgatepalmolive.com.

About Colgate-Palmolive

Colgate-Palmolive Company is a caring, innovative growth company reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, the Company sells its products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom's of Maine, EltaMD, Filorga, Irish Spring, PCA Skin, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill's Science Diet and Hill's Prescription Diet. The Company is recognized for its leadership and innovation in promoting environmental sustainability and community well-being, including its achievements in saving water, reducing waste, promoting recyclability and improving children's oral health through its Bright Smiles, Bright Futures program, which has reached more than 1.4 billion children since 1991. For more information about Colgate's global business and how the Company is building a future to smile about, visit www.colgatepalmolive.com. CL-E

The Company's annual meeting of stockholders is currently scheduled for Friday, May 6, 2022.

Market Share Information

Management uses market share information as a key indicator to monitor business health and performance. References to market share in this press release are based on a combination of consumption and market share data provided by third-party vendors, primarily Nielsen, and internal estimates. All market share references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company competes and purchases data (excluding Venezuela from all periods). Market share data is subject to limitations on the availability of up-to-date information. In particular, market share data is currently not generally available for certain retail channels, such as eCommerce and certain club retailers and discounters. The Company measures year-to-date market shares from January 1 of the relevant year through the most recent period for which market share data is available, which typically reflects a lag time of one or two months. The Company believes that the third-party vendors it uses to provide data are reliable, but it has not verified the accuracy or completeness of the data or any assumptions underlying the data. In certain limited circumstances, the COVID-19 pandemic has impacted the ability of our third-party vendors to provide the Company with reliable updated market share data. In addition, market share information reported by the Company may be different from market share information reported by other companies due to differences in category definitions, the use of data from different countries, internal estimates and other factors.

Cautionary Statement on Forward-Looking Statements

This press release and the related webcast may contain forward-looking statements (as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission (SEC) in its rules, regulations and releases) that set forth anticipated results based on management's current plans and assumptions. Such statements may relate, for example, to sales or volume growth, net selling price increases, organic sales growth, profit or profit margin levels, earnings per share levels, financial goals, the impact of foreign exchange, the impact of COVID-19, cost-reduction plans, tax rates, new product introductions, commercial investment levels, acquisitions, divestitures, share repurchases, or legal or tax proceedings, among other matters. These statements are made on the basis of the Company's views and assumptions as of this time and the Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, except as required by law or by the rules and regulations of the SEC. Moreover, the Company does not, nor does any other person, assume responsibility for the accuracy and completeness of these statements. The Company cautions investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. For more information about factors that could impact the Company's business and cause actual results to differ materially from forward-looking statements, investors should refer to the Company's filings with the SEC (including, but not limited to, the information set forth under the captions "Risk Factors" and "Cautionary Statement on Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent Quarterly Reports on Form 10-Q). Copies of these filings may be obtained upon request from the Company's Investor Relations Department or on the Company's website at www.colgatepalmolive.com.

Non-GAAP Financial Measures

The following provides definitions and other information regarding the non-GAAP financial measures used in this press release and/or the related webcast, which may not be the same as or comparable to similar measures presented by other companies:

* Base Business: Base Business refers to non-GAAP measures of operating results that exclude certain items. Base Business operating results exclude, as applicable, goodwill and indefinite-lived intangible asset impairment charges, losses on the early extinguishment of debt, a value-added tax matter in Brazil, benefits resulting from the Global Growth and Efficiency Program, acquisition-related costs and a benefit related to a reorganization of the ownership structure of certain foreign subsidiaries and a new operating structure implemented within one of the Company's divisions. * Organic sales growth: Net sales growth excluding the impact of foreign exchange, acquisitions and divestments. * Free cash flow before dividends: Net cash provided by operations less Capital expenditures.

This press release discusses Net sales growth (GAAP) and Organic sales growth (non-GAAP). Management believes the organic sales growth measure provides investors and analysts with useful supplemental information regarding the Company's underlying sales trends by presenting sales growth excluding the external factor of foreign exchange as well as the impact from acquisitions and divestments. See "Geographic Sales Analysis Percentage Changes" for the three and twelve months ended December 31, 2021 versus 2020 included with this release for a comparison of Organic sales growth to Net sales growth in accordance with GAAP.

Worldwide Gross profit, Gross profit margin, Other (income) expense, net, Operating profit, Operating profit margin, Effective income tax rate, Net income attributable to Colgate-Palmolive Company and Diluted earnings per common share are disclosed on both an as reported (GAAP) and Base Business (non-GAAP) basis. These non-GAAP financial measures exclude items that, either by their nature or amount, management would not expect to occur as part of the Company's normal business on a regular basis, such as restructuring charges, charges for certain litigation and tax matters, gains and losses from certain acquisitions, divestitures and certain other unusual, non-recurring items. Investors and analysts use these financial measures in assessing the Company's business performance, and management believes that presenting these financial measures on a non-GAAP basis provides them with useful supplemental information to enhance their understanding of the Company's underlying business performance and trends. These non-GAAP financial measures also enhance the ability to compare period-to-period financial results. See "Non-GAAP Reconciliations" for the three and twelve months ended December 31, 2021 and 2020 included with this release for a reconciliation of these financial measures to the related GAAP measures.

The Company uses these financial measures internally in its budgeting process, to evaluate segment and overall operating performance and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company's underlying business performance and trends, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.

As management uses free cash flow before dividends to evaluate the Company's ability to satisfy current and future obligations, pay dividends, fund future business opportunities and repurchase stock, the Company believes that it provides useful information to investors. Free cash flow before dividends is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. See "Condensed Consolidated Statements of Cash Flows" for the twelve months ended December 31, 2021 and 2020 for a comparison of free cash flow before dividends to Net cash provided by operations as reported in accordance with GAAP.

(See attached tables for fourth quarter and full year results.)

Table 1

Colgate-Palmolive Company



Condensed Consolidated Statements of Income



For the Three Months Ended December 31, 2021 and 2020



(Dollars in Millions Except Per Share Amounts) (Unaudited)



2021 2020



Net sales $ 4,403 $ 4,324



Cost of sales 1,844 1,681



Gross profit 2,559 2,643



Gross profit margin 58.1 % 61.1 %



Selling, general and administrative expenses 1,598 1,633



Other (income) expense, net 25 41



Goodwill and indefinite-lived intangible impairment 571 - charges



Operating profit 365 969



Operating profit margin 8.3 % 22.4 %



Non-service related postretirement costs 18 18



Interest (income) expense, net 23 57



Income before income taxes 324 894



Provision for income taxes 136 202



Effective tax rate 42.0 % 22.6 %



Net income including noncontrolling interests 188 692



Less: Net income attributable to noncontrolling 40 45 interests



Net income attributable to Colgate-Palmolive Company $ 148 $ 647



Earnings per common share

Basic $ 0.18 $ 0.76

Diluted $ 0.18 $ 0.75



Supplemental Income Statement Information

Average common shares outstanding

Basic 842.1 854.1

Diluted 845.0 858.4



Advertising $ 489 $ 549

Table 2

Colgate-Palmolive Company



Condensed Consolidated Statements of Income



For the Twelve Months Ended December 31, 2021 and 2020



(Dollars in Millions Except Per Share Amounts) (Unaudited)



2021 2020



Net sales $ 17,421 $ 16,471



Cost of sales 7,046 6,454



Gross profit 10,375 10,017



Gross profit margin 59.6 % 60.8 %



Selling, general and administrative expenses 6,407 6,019



Other (income) expense, net 65 113



Goodwill and indefinite-lived intangible impairment 571 - charges



Operating profit 3,332 3,885



Operating profit margin 19.1 % 23.6 %



Non-service related postretirement costs 70 74



Interest (income) expense, net 175 164



Income before income taxes 3,087 3,647



Provision for income taxes 749 787



Effective tax rate 24.3 % 21.6 %



Net income including noncontrolling interests 2,338 2,860



Less: Net income attributable to noncontrolling 172 165 interests



Net income attributable to Colgate-Palmolive $ 2,166 $ 2,695 Company



Earnings per common share

Basic^(1) $ 2.56 $ 3.15

Diluted^(1) $ 2.55 $ 3.14



Supplemental Income Statement Information

Average common shares outstanding

Basic 845.0 856.8

Diluted 848.3 859.3



Advertising $ 2,021 $ 1,948



Note:

(1) Basic and diluted earnings per share are computed independently for eachquarter and any year-to-date period presented. As a result of changes in sharesoutstanding during the year and rounding, the sum of the quarters' earnings pershare may not equal the earnings per share for any year-to-date period. Table 3

Colgate-Palmolive Company



Condensed Consolidated Balance Sheets



As of December 31, 2021 and December 31, 2020



(Dollars in Millions) (Unaudited)



2021 2020

Cash and cash equivalents $ 832 $ 888

Receivables, net 1,297 1,264

Inventories 1,692 1,673

Other current assets 576 513

Property, plant and equipment, net 3,730 3,716

Goodwill 3,284 3,824

Other intangible assets, net 2,462 2,894

Other assets 1,167 1,148

Total assets $ 15,040 $ 15,920



Total debt 7,245 7,601

Other current liabilities 4,000 4,137

Other non-current liabilities 2,824 3,081

Total liabilities 14,069 14,819

Total Colgate-Palmolive Company shareholders' equity 609 743

Noncontrolling interests 362 358

Total liabilities and equity $ 15,040 $ 15,920



Supplemental Balance Sheet Information

Debt less cash, cash equivalents and marketable $ 6,379 $ 6,676 securities^(1)

Working capital % of sales (2.7 ) (4.4 ) % %

Note:(1) Marketable securities of $34 and $37 as of December 31, 2021 and 2020,respectively, are included in Other current assets.

Table 4

Colgate-Palmolive Company



Condensed Consolidated Statements of Cash Flows



For the Twelve Months Ended December 31, 2021 and 2020



(Dollars in Millions) (Unaudited)



2021 2020

Operating Activities

Net income including noncontrolling interests $ 2,338 $ 2,860

Adjustments to reconcile Net income includingnoncontrolling interests to Net cash provided by operations:

Depreciation and amortization 556 539

Restructuring and termination benefits, net of cash (21 ) (71 )

Stock-based compensation expense 135 107

Goodwill and indefinite-lived intangible impairment 571 - charges

Loss on early extinguishment of debt 75 23

Deferred income taxes (132 ) (120 )

Cash effects of changes in:

Receivables (84 ) 138

Inventories (72 ) (251 )

Accounts payable and other accruals 14 520

Other non-current assets and liabilities (55 ) (26 )

Net cash provided by operations 3,325 3,719



Investing Activities

Capital expenditures (567 ) (410 )

Purchases of marketable securities and investments (141 ) (143 )

Proceeds from sale of marketable securities and 141 124 investments

Payment for acquisitions, net of cash acquired - (353 )

Other (25 ) 3

Net cash used in investing activities (592 ) (779 )



Financing Activities

Short-term borrowing (repayment) less than 90 days, (171 ) 488 net

Principal payments on debt (703 ) (1,085 )

Proceeds from issuance of debt 699 -

Dividends paid (1,679 ) (1,654 )

Purchases of treasury shares (1,320 ) (1,476 )

Proceeds from exercise of stock options 424 874

Purchases of non-controlling interests in - (99 )subsidiaries

Other financing activities (24 ) 33

Net cash used in financing activities (2,774 ) (2,919 )



Effect of exchange rate changes on Cash and cash (15 ) (16 )equivalents

Net increase (decrease) in Cash and cash equivalents (56 ) 5

Cash and cash equivalents at beginning of the period 888 883

Cash and cash equivalents at end of the period $ 832 $ 888



Supplemental Cash Flow Information

Free cash flow before dividends (Net cash provided by operations less Capital expenditures)

Net cash provided by operations 3,325 3,719

Less: Capital expenditures (567 ) (410 )

Free cash flow before dividends $ 2,758 $ 3,309





Income taxes paid $ 890 $ 845

Table 5

Colgate-Palmolive Company



Segment Information



For the Three and Twelve Months Ended December 31, 2021 and 2020



(Dollars in Millions) (Unaudited)



Three Months Ended Twelve Months Ended December 31, December 31,

2021 2020 2021 2020

Net Sales

Oral, Personal and Home Care



North America $ 930 $ 940 $ 3,694 $ 3,741

Latin America 917 886 3,663 3,418

Europe 698 743 2,841 2,747

Asia Pacific 724 721 2,867 2,701

Africa/Eurasia 249 245 1,045 981



Total Oral, Personal and 3,518 3,535 14,110 13,588 Home Care



Pet Nutrition 885 789 3,311 2,883



Total Net Sales $ 4,403 $ 4,324 $ 17,421 $ 16,471





Three Months Ended Twelve Months Ended December 31, December 31,

2021 2020 2021 2020

Operating Profit

Oral, Personal and Home Care



North America $ 168 $ 235 $ 754 $ 988

Latin America 238 247 1,012 975

Europe 158 170 682 652

Asia Pacific 204 215 844 773

Africa/Eurasia 50 32 203 206



Total Oral, Personal and 818 899 3,495 3,594 Home Care



Pet Nutrition 241 205 901 793

Corporate^(1) (694 ) (135 ) (1,064 ) (502 )



Total Operating Profit $ 365 $ 969 $ 3,332 $ 3,885

Note:(1) Corporate operations include costs related to stock options and restrictedstock units, research and development costs, Corporate overhead costs and gainsand losses on sales of non-core product lines and assets.

Corporate Operating profit (loss) for the three months ended December 31, 2021included goodwill and indefinite-lived intangible impairment charges of $571.

Corporate Operating profit (loss) for the twelve months ended December 31, 2021included goodwill and indefinite-lived intangible impairment charges of $571and a benefit from a value-added tax matter in Brazil of $26. CorporateOperating profit (loss) for the twelve months ended December 31, 2020 includedcharges of $6 for acquisition-related costs and benefits of $16 related to theGlobal Growth and Efficiency Program, which ended on December 31, 2019.

Table 6

Colgate-Palmolive Company



Geographic Sales Analysis Percentage Changes



For the Three Months Ended December 31, 2021 vs. 2020



(Unaudited)







COMPONENTS OF SALES CHANGE



Pricing

Coupons

Sales Consumer &

Change Organic As Organic Trade Foreign Reported

Region As Sales Volume Volume Incentives Exchange Reported Change



Total Company 2.0% 3.0% -% -% 3.0% (1.0)%



North America (1.0)% (1.5)% (1.0)% (1.0)% (0.5)% 0.5%



Latin America 3.5% 6.0% (1.0)% (1.0)% 7.0% (2.5)%



Europe (6.0)% (3.5)% (3.0)% (3.0)% (0.5)% (2.5)%



Asia Pacific 0.5% 1.5% 0.5% 0.5% 1.0% (1.0)%



Africa/ 2.0% 3.0% (5.5)% (5.5)% 8.5% (1.0)%Eurasia



Total CP (0.5)% 1.0% (1.5)% (1.5)% 2.5% (1.5)%Products



Hill's 12.0% 13.0% 7.0% 7.0% 6.0% (1.0)%





Emerging 2.5% 4.0% (1.0)% (1.0)% 5.0% (1.5)%Markets^(1)



Developed 1.5% 2.5% 1.0% 1.0% 1.5% (1.0)%Markets

Note: (1) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.

Table 7

Colgate-Palmolive Company



Geographic Sales Analysis Percentage Changes



For the Twelve Months Ended December 31, 2021 vs. 2020



(Unaudited)



COMPONENTS OF SALES CHANGE



Pricing

Coupons

Sales Consumer &

Change Organic As Organic Trade Foreign Reported

Region As Sales Volume Volume Incentives Exchange Reported Change



Total Company 6.0% 4.5% 1.0% 1.0% 3.5% 1.5%



North America (1.0)% (2.0)% (4.0)% (4.0)% 2.0% 1.0%



Latin America 7.0% 8.0% 1.0% 1.0% 7.0% (1.0)%



Europe 3.5% (0.5)% (0.5)% (0.5)% -% 4.0%



Asia Pacific 6.0% 3.0% 3.0% 3.0% -% 3.0%



Africa/ 6.5% 7.0% 1.0% 1.0% 6.0% (0.5)%Eurasia



Total CP 4.0% 2.5% -% -% 2.5% 1.5%Products



Hill's 15.0% 13.5% 8.0% 8.0% 5.5% 1.5%





Emerging 7.0% 6.5% 2.0% 2.0% 4.5% 0.5%Markets^(1)



Developed 4.5% 2.5% 0.5% 0.5% 2.0% 2.0%Markets

Note: (1) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.

Table 8

Colgate-Palmolive Company



Non-GAAP Reconciliations



For the Three Months Ended December 31, 2021 and 2020



(Dollars in Millions Except Per Share Amounts) (Unaudited)





Operating Profit 2021 2020 % Change

Operating profit, GAAP $ 365 $ 969 (62 ) %

Goodwill and indefinite-lived intangible impairment 571 - charges

Operating profit, non-GAAP $ 936 $ 969 (3 ) %



Basis Point

Operating Profit Margin 2021 2020 Change

Operating profit margin, GAAP 8.3 % 22.4 % (1,410 )

Goodwill and indefinite-lived intangible impairment 13.0 % - % charges

Operating profit margin, non-GAAP 21.3 % 22.4 % (110 )





Interest (Income) Expense 2021 2020

Interest (income) expense, GAAP $ 23 $ 57

Loss on early extinguishment of debt - (23 )

Interest (income) expense, non-GAAP $ 23 $ 34





2021

Net Income Net Income Income Provision Attributable Effective Diluted Before For Including To Income Earnings Income Income Noncontrolling Colgate- Taxes Taxes^(1) Tax Rate^ Per Share Interests Palmolive (2)

Company

As Reported GAAP $ 324 $ 136 $ 188 $ 148 42.0 % $ 0.18

Goodwill andindefinite-lived )intangible 571 53 518 518 (20.9 % 0.61 impairmentcharges

Non-GAAP $ 895 $ 189 $ 706 $ 666 21.1 % $ 0.79





2020

Net Income Net Income Income Provision Attributable Effective Diluted Before For Including To Income Earnings Income Income Noncontrolling Colgate- Taxes Taxes^(1) Tax Rate^ Per Share Interests Palmolive (2)

Company

As Reported GAAP $ 894 $ 202 $ 692 $ 647 22.6 % $ 0.75

Loss on earlyextinguishment 23 5 18 18 - % 0.02 of debt

Non-GAAP $ 917 $ 207 $ 710 $ 665 22.6 % $ 0.77

The impact of non-GAAP adjustments may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding.

Notes: (1) The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

(2) The impact of non-GAAP items on the Company's effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income before income taxes and Provision for income taxes.

Table 9

Colgate-Palmolive Company



Non-GAAP Reconciliations



For the Twelve Months Ended December 31, 2021 vs. 2020



(Dollars in Millions Except Per Share Amounts) (Unaudited)



Gross Profit 2021 2020

Gross profit, GAAP $ 10,375 $ 10,017

Acquisition-related costs - 4

Gross profit, non-GAAP $ 10,375 $ 10,021





Selling, General and Administrative Expenses 2021 2020

Selling, general and administrative expenses, GAAP $ 6,407 $ 6,019

Global Growth and Efficiency Program - 3

Selling, general and administrative expenses, non-GAAP $ 6,407 $ 6,022



BasisSelling, General and Administrative Expenses as a Percentage Pointof Net Sales 2021 2020 Change

Selling, general and administrative expenses as a percentage 36.8 % 36.5 % 30 of Net sales, GAAP

Global Growth and Efficiency Program - % 0.1 %

Selling, general and administrative expenses as a percentage 36.8 % 36.6 % 20 of Net sales, non-GAAP





Other (Income) Expense, Net 2021 2020

Other (income) expense, net, GAAP $ 65 $ 113

Global Growth and Efficiency Program - 13

Acquisition-related costs - (2 )

Value-added tax matter in Brazil 26 -

Other (income) expense, net, non-GAAP $ 91 $ 124





Operating Profit 2021 2020 % Change

Operating profit, GAAP $ 3,332 $ 3,885 (14 ) %

Global Growth and Efficiency Program - (16 )

Acquisition-related costs - 6

Value-added tax matter in Brazil (26 ) -

Goodwill and indefinite-lived intangible impairment charges 571 -

Operating profit, non-GAAP $ 3,877 $ 3,875 - %



Basis Point

Operating Profit Margin 2021 2020 Change

Operating profit margin, GAAP 19.1 % 23.6 % (450 )

Global Growth and Efficiency Program - (0.1 ) % %

Value-added tax matter in Brazil (0.2 )% - %

Goodwill and indefinite-lived intangible impairment charges 3.4 % - %

Operating profit margin, non-GAAP 22.3 % 23.5 % (120 )





Interest (Income) Expense, Net 2021 2020

Interest (income) expense, GAAP $ 175 $ 164

Losses on early extinguishment of debt (75 ) (23 )

Interest (income) expense, non-GAAP $ 100 $ 141





Table 9

Continued

Colgate-Palmolive Company



Non-GAAP Reconciliations



For the Twelve Months Ended December 31, 2021 vs. 2020



(Dollars in Millions Except Per Share Amounts) (Unaudited)





2021

Net Income Net Income Income Provision Attributable Effective Diluted Before For Including To Income Earnings Income Income Noncontrolling Colgate- Taxes Taxes^(1) Tax Rate^ Per Share Interests Palmolive (2)

Company

As Reported GAAP $ 3,087 $ 749 $ 2,338 $ 2,166 24.3 % $ 2.55

Goodwill andindefinite-lived 571 53 518 518 (2.1 ) 0.61 intangible impairment % charges

Loss on early )extinguishment of 75 20 55 55 (0.3 % 0.07 debt

Value-added tax (26 ) (6 ) (20 ) (20 ) 0.1 % (0.02 )matter in Brazil

Non-GAAP $ 3,707 $ 816 $ 2,891 $ 2,719 22.0 % $ 3.21





2020

Net Income Net Income Income Provision Attributable Effective Diluted Before For Including To Income Earnings Income Income Noncontrolling Colgate- Taxes Taxes^(1) Tax Rate^ Per Share Interests Palmolive (2)

Company

As Reported GAAP $ 3,647 $ 787 $ 2,860 $ 2,695 21.6 % $ 3.14

Global Growth and (16 ) (3 ) (13 ) (13 ) - % (0.02 )Efficiency Program

Subsidiary andoperating structure - 71 (71 ) (71 ) 2.0 % (0.08 )initiatives

Acquisition-related 6 2 4 4 - % - costs

Loss on earlyextinguishment of 23 5 18 18 - % 0.02 debt

Non-GAAP $ 3,660 $ 862 $ 2,798 $ 2,633 23.6 % $ 3.06

The impact of non-GAAP adjustments may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding.

Notes: (1) The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

(2) The impact of non-GAAP items on the Company's effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income before income taxes and Provision for income taxes.

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