Colgate-Palmolive's (CL) Q4 2024 performance demonstrated strong financial results, with net sales reaching $20,101 million, a 3.3% increase compared to 2023. This growth was driven by a 3.1% volume increase and 4.4% higher net selling prices, partially offset by a 4.1% negative foreign exchange impact. Organic sales, which exclude foreign exchange, acquisitions, and divestments, grew by 7.4% year-over-year, reflecting robust underlying business momentum.

The company's gross profit increased to $12,161 million, up from $11,326 million in 2023, reflecting a 7.4% growth. This improvement was primarily due to higher net sales and cost-saving initiatives, despite higher raw and packaging material costs. Gross profit margin expanded by 240 basis points, contributing to the overall profitability improvement.

Operating profit rose by 7% to $4,268 million, compared to $3,984 million in 2023. Excluding one-time charges, operating profit increased by 8% to $4,353 million, with the operating profit margin improving by 100 basis points to 21.7%. This was driven by higher gross profit and operational efficiencies, partially offset by increased selling, general, and administrative expenses.

Net income attributable to Colgate-Palmolive increased to $2,889 million, up from $2,300 million in 2023, representing a 25.6% year-over-year growth. Basic earnings per share rose to $3.53, compared to $2.78 in the prior year, reflecting the company's strong operational performance and profitability.

The company reported net cash provided by operations of $4,107 million, a 10% increase from $3,745 million in 2023. This improvement was primarily driven by higher net income and favorable changes in working capital, particularly higher accounts payable and accruals. Working capital as a percentage of net sales improved to (5.2%) in 2024, compared to (1.4%) in 2023, indicating enhanced operational efficiency.

Investing activities used $534 million of cash, compared to $742 million in 2023, reflecting lower capital expenditures and stable proceeds from the sale of marketable securities. Financing activities, however, used $3,389 million, up from $2,793 million in 2023, driven by higher treasury share purchases and dividend payments.

The company's total assets decreased slightly to $16,046 million from $16,393 million in 2023, primarily due to reductions in goodwill and other intangible assets. Total liabilities remained stable at $15,502 million, while shareholders' equity declined to $544 million, reflecting higher treasury stock purchases and accumulated other comprehensive losses.

In the Asia Pacific region, net sales increased by 2.7% to $2,858 million, driven by 3.1% volume growth and 1.0% higher pricing, partially offset by a 1.3% negative foreign exchange impact. Organic sales in the region grew by 4.0%, led by strong performance in India, the Philippines, Australia, and Greater China. Operating profit in the region rose by 6% to $812 million, with an operating margin improvement of 80 basis points to 28.4%.

Colgate-Palmolive's strategic focus on organic sales growth, operational efficiencies, and leveraging its strong balance sheet has positioned the company well for future challenges. The company aims to drive growth through science-led innovation, expansion into higher-growth categories, and increased penetration in faster-growing markets and channels. These efforts are expected to support margin expansion and cash flow growth over the long term.