Colgate Announces 4th Quarter and Full Year 2013 Results

  Colgate Announces 4th Quarter and Full Year 2013 Results

                    Strong Organic Sales Growth Worldwide

Business Wire

NEW YORK -- January 30, 2014

Colgate-Palmolive Company (NYSE:CL) today reported worldwide Net sales of
$4,361 million in fourth quarter 2013, an increase of 2.0% versus fourth
quarter 2012. Global unit volume grew 6.5%, pricing was even with the year ago
quarter and foreign exchange was negative 4.5%. Organic sales (Net sales
excluding foreign exchange, acquisitions and divestments) grew 6.5%.

Net income and Diluted earnings per share in fourth quarter 2013 were $564
million and $0.60, respectively. Net income in fourth quarter 2013 included
$133 million ($0.15 per diluted share) of aftertax charges resulting from the
implementation of the previously disclosed four-year Global Growth and
Efficiency Program (the “2012 Restructuring Program”), a charge associated
with an existing European competition law matter and costs associated with the
sale of land in Mexico.

Net income and Diluted earnings per share in fourth quarter 2012 were $598
million and $0.63, respectively. Net income in fourth quarter 2012 included
aftertax charges of $73 million ($0.07 per diluted share) resulting from the
items described in Table 8.

Excluding the above noted items in both periods, Net income in fourth quarter
2013 was $697 million, an increase of 4% versus fourth quarter 2012, and
Diluted earnings per share in fourth quarter 2013 was $0.75, an increase of 7%
versus fourth quarter 2012.

Gross profit margin was 58.9% in fourth quarter 2013 versus 58.4% in the year
ago quarter. Excluding the above noted items in both periods, Gross profit
margin was 59.1% in fourth quarter 2013, an increase of 50 basis points versus
the year ago quarter, as cost savings from the Company’s funding-the-growth
initiatives more than offset higher raw and packaging material costs which
included the impact of foreign exchange transaction costs.

Selling, general and administrative expenses were 37.0% of Net sales in fourth
quarter 2013 versus 34.7% of Net sales in fourth quarter 2012. Excluding the
above noted items in both periods, Selling, general and administrative
expenses decreased by 10 basis points to 34.5% of Net sales in fourth quarter
2013, as an increase in advertising investment was more than offset by a
decrease in overhead expenses, both as a percentage of Net sales. Worldwide
advertising investment increased 3% versus the year ago quarter to $445
million.

Operating profit decreased 5% to $892 million in fourth quarter 2013 compared
to $942 million in fourth quarter 2012. Excluding the above noted items in
both periods, Operating profit increased 4% to $1,074 million.

Net cash provided by operations year to date was $3,204 million compared to
$3,196 million in the comparable 2012 period, as strong operating earnings and
a continued tight focus on working capital were offset by higher cash spending
related to the 2012 Restructuring Program. Free cash flow before dividends
(Net cash provided by operations less Capital expenditures) exceeded 100% of
Net income. Working capital as a percentage of Net sales was 0.7%, even with
the year ago period.

For the full year 2013, worldwide Net sales were $17,420 million, up 2.0%
versus full year 2012. Global unit volume grew 5.0%, pricing increased 1.0%
and foreign exchange was negative 4.0%. Organic sales grew 6.0%.

Net income and Diluted earnings per share for full year 2013 were $2,241
million and $2.38, respectively. Full year 2013 results include $424 million
($0.46 per diluted share) of aftertax charges resulting from the
implementation of the 2012 Restructuring Program, the one-time charge relating
to the remeasurement of the Venezuela balance sheet as a result of the
currency devaluation in Venezuela, a charge associated with a European
competition law matter and costs associated with the sale of land in Mexico.

Net income and Diluted earnings per share for full year 2012 were $2,472
million and $2.57, respectively. As previously disclosed, full year 2012
results included net aftertax charges of $102 million ($0.11 per diluted
share) resulting from the items described in Table 9.

Excluding the items noted above in both periods, Net income for full year 2013
increased 4% versus full year 2012 and Diluted earnings per share increased 6%
versus full year 2012.

Gross profit margin was 58.6% for full year 2013 versus 58.1% in full year
2012. Excluding the items noted above in both periods, Gross profit margin was
58.8% in full year 2013, up 50 basis points versus full year 2012, as higher
pricing and cost savings from the Company’s funding-the-growth initiatives
more than offset the impact of increases in raw and packaging material costs
and foreign exchange transaction costs.

Ian Cook, Chairman, President and Chief Executive Officer, commented on the
results and outlook excluding the 2013 and 2012 items noted above, “We are
delighted to have ended the year with another quarter of strong growth on both
the top and bottom lines. For the eleventh consecutive quarter, operating
profit, net income and diluted earnings per share all increased versus the
year ago period.

“The strong 6.5% organic sales growth was led by the emerging markets, where
organic sales grew a robust 10.5%. Our strong top-line momentum should
continue into 2014, fueled by new products across all categories and in all
geographies.

“Pleasingly, the increase in gross profit margin during the quarter, combined
with a reduction in overhead costs funded an increase in advertising spending
behind Colgate’s brands, both absolutely and as a percent to sales, driving
market share performance worldwide.

“Colgate’s leading global market shares in toothpaste and manual toothbrushes
remain strong at 44.9% and 32.8%, respectively, on a year-to-date basis. We
continue to make great progress in mouthwash as well, with our global market
share in that category reaching a record high at 17.0% year to date, up 130
basis points versus prior year.

“Our 2012 Restructuring Program is on track and proceeding smoothly. We also
continue to be sharply focused on our aggressive worldwide funding-the-growth
programs and our strategic pricing initiatives.”

Mr. Cook concluded, “As we look ahead to 2014, based on the Company’s current
growth momentum and our confidence in the strength of our global growth and
efficiency program, we are planning for a year of gross margin expansion and
strong earnings per share growth in line with the consensus of external
analyst estimates, excluding charges related to the 2012 Restructuring
Program. This takes into account recent movements in foreign exchange rates
but excludes the impact of the recent economic announcements in Venezuela,
which we are still evaluating.”

At 11:00 a.m. ET today, Colgate will host a conference call to elaborate on
fourth quarter results. To access this call as a webcast, please go to
Colgate’s web site at http://www.colgatepalmolive.com.

The following are comments about divisional performance for fourth quarter
2013 versus the year ago period. See attached Geographic Sales Analysis
Percentage Changes and Segment Information schedules for additional
information on divisional net sales and operating profit.

North America (18% of Company Sales)

North America Net sales increased 2.5% in fourth quarter 2013. Unit volume
increased 4.0% with 1.0% lower pricing and 0.5% negative foreign exchange.
Organic sales increased 3.0% during the quarter.

Operating profit in North America increased 5% in fourth quarter 2013 to $241
million, or 70 basis points to 31.2% of Net sales.This increase in Operating
profit was primarily due to an increase in Gross profit, which was partially
offset by an increase in Selling, general and administrative expenses, both as
a percentage of Net sales. This increase in Gross profit was mainly driven by
cost savings from the Company’s funding-the-growth initiatives, which were
partially offset by higher raw and packaging material costs and lower pricing.
This increase in Selling, general and administrative expenses was driven by
increased advertising investment, which more than offset lower overhead
expenses.

In the U.S., new product launches are contributing to volume growth across
categories. Market share gains year to date were seen in manual toothbrushes,
powered toothbrushes, mouthwash, dish liquids and fabric conditioners. In
toothpaste, the success of Colgate Optic White and Colgate Optic White Dual
Action toothpastes helped drive market share for the Colgate Optic White brand
to 5.3% year to date, up 0.2 share points versus year ago. Strong sales of
Colgate Total, Colgate Max Fresh Cool Scrub, Colgate Sensitive SmartFoam with
Whitening and Tom’s of Maine toothpastes also contributed to volume growth in
the quarter.

In manual toothbrushes, Colgate continued its brand market leadership with its
market share in that category reaching a record 38.1% year to date, up 2.1
share points versus year ago. This success was driven by strong sales of
Colgate 360° Optic White, Colgate 360° Total Advanced Floss Tip bristles,
Colgate Extra Clean and Colgate Slim Soft manual toothbrushes.

Successful products driving volume growth in the U.S. in other categories
include Colgate Total Advanced Pro-Shield and Colgate Optic White mouthwashes,
Palmolive Soft Touch and Palmolive Lotus Blossom & Lavender dish liquids and
Suavitel fabric conditioner.

Exciting new products planned for launch in first quarter 2014 include Colgate
Optic White manual toothbrush + built-in whitening pen, Colgate Optic White
Platinum Whiten and Protect toothpaste, Speed Stick Gear deodorants with new
DryCore technology, Softsoap brand Décor Collection liquid hand soaps,
Suavitel Fast Dry fabric conditioner and Palmolive Dish & Sink dish washing
liquid.

Latin America (29% of Company Sales)

Latin America Net sales increased 1.0% in fourth quarter 2013. Unit volume
increased 10.0% with 2.5% higher pricing and 11.5% negative foreign exchange.
Volume gains were led by Venezuela, Brazil, Mexico and Colombia. Organic sales
for Latin America increased 12.5% during the quarter.

Operating profit in Latin America increased 3% in fourth quarter 2013 to $363
million, or 50 basis points to 28.7% of Net sales.This increase in Operating
profit was primarily due to a decrease in Selling, general and administrative
expenses, which was partially offset by a decrease in Gross profit, both as a
percentage of Net sales. This decrease in Gross profit was due to higher
costs, primarily in Venezuela, which were partially offset by cost savings
from the Company’s funding-the-growth initiatives and the benefits of pricing.
This decrease in Selling, general and administrative expenses was due to lower
overhead expenses and decreased advertising investment, the latter due to the
timing of new product launches.

Colgate’s strong leadership in oral care throughout Latin America continued
during the quarter with year-to-date toothpaste market share gains in Brazil,
Chile, Uruguay, the Dominican Republic and Puerto Rico. Strong sales of
Colgate Luminous White, Colgate Luminous White Advanced, Colgate Total
Professional Gum Health and Colgate Maximum Cavity Protection plus Neutrazucar
toothpastes drove volume growth throughout the region. Colgate strengthened
its leadership of the manual toothbrush market throughout the region, driven
by strong sales of Colgate 360° Luminous White, Colgate Triple Action and
Colgate Premier Clean manual toothbrushes. In mouthwash, Colgate’s strong
market share performance continues throughout the region, driven by the
success of Colgate Luminous White, Colgate Plax Fresh Tea and Colgate Plax 2
in 1 mouthwashes.

Products in other categories contributing to volume growth include Protex Men,
Protex Vitamin E, Palmolive Naturals Olive and Aloe and Palmolive Naturals
Argan Oil bar soaps and Axion Oats dish liquid.

Europe/South Pacific (19% of Company Sales)

Europe/South Pacific Net sales decreased 0.5% in fourth quarter 2013. Unit
volume increased 2.5% with 4.5% lower pricing and 1.5% positive foreign
exchange. Excluding divested businesses, unit volume increased 3.0%. Volume
gains in the United Kingdom, Australia and Poland more than offset volume
declines in France and Germany. Organic sales for Europe/South Pacific
decreased 1.5%.

Operating profit in Europe/South Pacific increased 7% in fourth quarter 2013
to $200 million, or 160 basis points to 23.7% of Net sales. This increase in
Operating profit was primarily due to an increase in Gross profit, which was
partially offset by an increase in Selling, general and administrative
expenses, both as a percentage of Net sales. This increase in Gross profit was
primarily driven by savings from the Company’s funding-the-growth initiatives,
which were partially offset by lower pricing. This increase in Selling,
general and administrative expenses was driven by increased advertising
investment, which was partially offset by lower overhead expenses.

Colgate strengthened its oral care leadership in the Europe/South Pacific
region with toothpaste share gains led by the United Kingdom, Switzerland,
Poland, Germany, Austria, Czech Republic, the Netherlands, Croatia and Serbia.
Successful premium products driving share gains include Colgate Max White One
Luminous, Colgate Max Fresh ActiClean with SmartFoam and Colgate Total Pro
Interdental toothpastes. In the manual toothbrush category, Colgate 360°
Interdental and Colgate Slim Soft manual toothbrushes contributed to volume
growth throughout the region.

Recent premium innovations contributing to volume growth in other product
categories include Colgate Max White One and Colgate Plax Complete Care
mouthwashes, Colgate ProClinical electric toothbrush, Sanex Surgras and
Palmolive Mediterranean Moments shower gels, Palmolive Hygiene-Plus liquid
hand soap, Paic Excel + dish liquid and Soupline Perfect Glide fabric
conditioner.

Asia (14% of Company Sales)

Asia Net sales increased 4.5% during fourth quarter 2013. Unit volume
increased 10.5% with 1.5% lower pricing and 4.5% negative foreign exchange.
Volume gains were led by the Greater China region, India and the Philippines.
Organic sales for Asia increased 9.0%.

Operating profit in Asia increased 14% in fourth quarter 2013 to $165 million,
or 230 basis points to 28.8% of Net sales. This increase in Operating profit
was primarily due to an increase in Gross profit and a decrease in Selling,
general and administrative expenses, both as a percentage of Net sales.This
increase in Gross profit was primarily due to cost savings from the Company’s
funding-the-growth initiatives, partially offset by higher raw and packaging
material costs, which included foreign exchange transaction costs, and lower
pricing. This decrease in Selling, general and administrative expenses was
primarily due to lower overhead expenses and decreased advertising investment,
the latter due to the timing of new product launches.

Colgate strengthened its toothpaste leadership in Asia, driven by market share
gains in India, China, Thailand, the Philippines and Singapore. Successful new
products including Colgate Total Pro Gum Health, Colgate Optic White, Colgate
Visible White, Colgate Active Salt Healthy White, Darlie Expert White and
Colgate Max Fresh Tea toothpastes contributed to volume growth throughout the
region.

Successful new products contributing to volume growth in other categories in
the region include Colgate Slim Soft Charcoal and Colgate Slim Soft Raised Tip
manual toothbrushes, Colgate Optic White, Colgate Plax Fruity Fresh and Darlie
mouthwashes, Palmolive Naturals White + Milk bar soap, Protex Men Power shower
gel and Palmolive Naturals Vibrant Color shampoo.

Africa/Eurasia (7% of Company Sales)

Africa/Eurasia Net sales increased 0.5% during fourth quarter 2013. Unit
volume increased 6.0% with 1.0% higher pricing and 6.5% negative foreign
exchange. Volume gains were led by Russia, the Sub-Saharan Africa region,
Turkey and the Central Asia/Caucasus region. Organic sales for Africa/Eurasia
increased 7.0%.

Operating profit in Africa/Eurasia increased 9% in fourth quarter 2013 to $76
million, or 170 basis points to 23.4% of Net sales. This increase in Operating
profit was primarily due to an increase in Gross profit and a decrease in
Selling, general and administrative expenses, both as a percentage of Net
sales.This increase in Gross profit was primarily due to cost savings from
the Company’s funding-the-growth initiatives and the benefits of pricing,
partially offset by higher raw and packaging material costs, which included
foreign exchange transaction costs. This decrease in Selling, general and
administrative expenses was primarily due to lower overhead expenses which
were partially offset by increased advertising investment.

Colgate continued its toothpaste leadership in Africa/Eurasia, driven by
market share gains in Russia, South Africa, Turkey, Kenya, Saudi Arabia and
Kuwait. Successful products contributing to volume growth in the region
include Colgate Optic White, Colgate Altai Herbs, Colgate Total Pro
Interdental and Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer
toothpastes, Colgate 360° Optic White and Colgate Slim Soft Charcoal manual
toothbrushes, Colgate Optic White and Colgate Plax Herbal mouthwashes and
Palmolive Gourmet Spa and Protex for Men shower gels.

Hill’s Pet Nutrition (13% of Company Sales)

Hill’s Net sales increased 4.5% during fourth quarter 2013. Unit volume
increased 4.0% with 3.0% higher pricing and 2.5% negative foreign exchange.
Volume gains in the U.S., Russia and Canada were partially offset by volume
declines in Japan. Hill’s organic sales increased 7.0%.

Hill’s Operating profit increased 3% in fourth quarter 2013 to $153 million,
while as a percentage of Net sales it decreased 50 basis points to 26.2% of
Net sales.This decrease in Operating profit as a percentage of Net sales was
primarily due to a decrease in Gross profit, which was partially offset by a
decrease in Selling, general and administrative expenses, both as a percentage
of Net sales. This decrease in Gross profit was primarily driven by higher raw
and packaging material costs, due in part to formulation changes and foreign
exchange transaction costs, which were partially offset by cost savings from
the Company’s funding-the-growth initiatives and the benefit of pricing. This
decrease in Selling, general and administrative expenses was due to lower
overhead expenses and decreased advertising investment, the latter due to
timing of new product launches.

New product introductions driving volume growth in the U.S. include the recent
successful launch of our natural pet food brand, Hill’s Ideal Balance, with
natural ingredients perfectly balanced.

New product introductions driving volume growth globally include the launch of
breakthrough weight loss nutrition, Hill’s Prescription Diet Metabolic, and
the relaunch of Hill’s Science Diet with natural ingredients and improved
taste.

Exciting new products planned for launch in first quarter 2014 include Hill’s
Ideal Balance Active and Slim & Healthy, Hill’s Science Diet Grain Free,
Perfect Weight and Sensitive Stomach and Skin, and Hill’s Prescription Diet
c/d Urinary Stress.

                                     ***

About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer
products company, tightly focused on Oral Care, Personal Care, Home Care and
Pet Nutrition. Colgate sells its products in over 200 countries and
territories around the world under such internationally recognized brand names
as Colgate, Palmolive, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring,
Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso,
Soupline and Suavitel, as well as Hill’s Science Diet, Hill’s Prescription
Diet and Hill’s Ideal Balance. For more information about Colgate’s global
business, visit the Company’s web site at http://www.colgatepalmolive.com. To
learn more about Colgate Bright Smiles, Bright Futures® oral health education
program, please visit http://www.colgatebsbf.com. CL-E

The Company’s annual meeting of shareholders is currently scheduled for
Friday, May 9, 2014.

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. Market share data
is subject to limitations on the availability of up-to-date information. We
believe that the third-party vendors we use to provide data are reliable, but
we have not verified the accuracy or completeness of the data or any
assumptions underlying the data. In addition, market share information
calculated by the Company may be different from market share information
calculated 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. Such statements may relate, for example, to sales or volume
growth, organic sales growth, profit or profit margin growth, earnings growth,
financial goals, the impact of currency devaluations, exchange controls, price
controls and labor unrest, including in Venezuela, cost-reduction plans
including the 2012 Restructuring Program, tax rates, new product introductions
or commercial investment levels. These statements are made on the basis of our
views and assumptions as of this time and we undertake no obligation to update
these statements. We caution 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. Investors should consult
the Company’s filings with the Securities and Exchange Commission (including
the information set forth under the caption “Risk Factors” in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2012) for
information about certain factors that could cause such differences. Copies of
these filings may be obtained upon request from the Company’s Investor
Relations Department or on the Company’s web site at
http://www.colgatepalmolive.com.

Non-GAAP Financial Measures

The following provides information regarding the non-GAAP financial measures
used in this earnings release and/or the related webcast:

This release discusses organic sales growth, which is Net sales growth
excluding the impact of foreign exchange, acquisitions and divestments.
Management believes this measure provides investors 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, 2013 vs
2012 included with this release for a comparison of organic sales growth to
sales growth in accordance with accounting principles generally accepted in
the United States of America (“GAAP”).

To supplement Colgate’s Condensed Consolidated Income Statements presented in
accordance with GAAP, the Company has disclosed non-GAAP measures of operating
results that exclude certain items. Worldwide Gross profit, Gross profit
margin, Selling, general and administrative expenses, Selling, general and
administrative expenses as a percentage of Net sales, Other (income) expense,
net, Operating profit, Operating profit margin, Net income attributable to
Colgate-Palmolive Company and Diluted earnings per common share are discussed
both as reported (on a GAAP basis) and, as applicable, excluding charges
resulting from the implementation of the 2012 Restructuring Program, the
one-time charge resulting from the Venezuela devaluation, a charge associated
with a European competition law matter, costs related to the sale of land in
Mexico and costs associated with various business realignment and other
cost-saving initiatives (non-GAAP). Management believes these non-GAAP
financial measures provide investors with useful supplemental information
regarding the performance of the Company’s ongoing operations. See “Non-GAAP
Reconciliations” for the three and twelve months ended December 31, 2013 and
2012 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
and as factors in determining compensation. While the Company believes that
these financial measures are useful in evaluating the Company’s business, 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. In addition, these non-GAAP
financial measures may not be the same as similar measures presented by other
companies.

The Company defines free cash flow before dividends as Net cash provided by
operations less Capital expenditures. As management uses this measure to
evaluate the Company’s ability to satisfy current and future obligations,
repurchase stock, pay dividends and fund future business opportunities, 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. Free cash flow before
dividends is not a GAAP measurement and may not be comparable to similarly
titled measures reported by other companies. See “Condensed Consolidated
Statements of Cash Flows” for the twelve months ended December 31, 2013 and
2012 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 results.)

 Table 1
  
  Colgate-Palmolive Company
                                                            
  Condensed Consolidated Income Statements
                                                                       
  For the Three Months Ended December 31, 2013 and 2012
                                                                       
  (Dollars in Millions Except Per Share Amounts) (Unaudited)
                                                                       
                                                     2013              2012
                                                                       
  Net sales                                          $ 4,361           $ 4,286
                                                                       
  Cost of sales                                        1,794             1,781
                                                                       
  Gross profit                                         2,567             2,505
                                                                       
  Gross profit margin                                  58.9%             58.4%
                                                                       
  Selling, general and administrative                  1,612             1,487
  expenses
                                                                       
  Other (income) expense, net                          63                76
                                                                       
  Operating profit                                     892               942
                                                                       
  Operating profit margin                              20.5%             22.0%
                                                                       
  Interest (income) expense, net                       (1)               (5)
                                                                       
  Income before income taxes                           893               947
                                                                       
  Provision for income taxes                           292               311
                                                                       
  Effective tax rate                                   32.7%             32.8%
                                                                       
  Net income including noncontrolling                  601               636
  interests
                                                                       
  Less: Net income attributable to                     37                38
  noncontrolling interests
                                                                       
  Net income attributable to                         $ 564             $ 598
  Colgate-Palmolive Company
                                                                       
  Earnings per common share
  Basic                                              $ 0.61            $ 0.63
  Diluted                                            $ 0.60            $ 0.63
                                                                       
  Average common shares outstanding
  Basic                                                925.7             944.0
  Diluted                                              935.3             952.1

 Table 2
  
  Colgate-Palmolive Company
                                                           
  Condensed Consolidated Income Statements
                                                                      
  For the Twelve Months Ended December 31, 2013 and 2012
                                                                      
  (Dollars in Millions Except Per Share Amounts) (Unaudited)
                                                                      
                                                   2013               2012
                                                                      
  Net sales                                        $ 17,420           $ 17,085
                                                                      
  Cost of sales                                      7,219              7,153
                                                                      
  Gross profit                                       10,201             9,932
                                                                      
  Gross profit margin                                58.6%              58.1%
                                                                      
  Selling, general and administrative                6,223              5,930
  expenses
                                                                      
  Other (income) expense, net                        422                113
                                                                      
  Operating profit                                   3,556              3,889
                                                                      
  Operating profit margin                            20.4%              22.8%
                                                                      
  Interest (income) expense, net                     (9)                15
                                                                      
  Income before income taxes                         3,565              3,874
                                                                      
  Provision for income taxes                         1,155              1,243
                                                                      
  Effective tax rate                                 32.4%              32.1%
                                                                      
  Net income including noncontrolling                2,410              2,631
  interests
                                                                      
  Less: Net income attributable to                   169                159
  noncontrolling interests
                                                                      
  Net income attributable to                       $ 2,241            $ 2,472
  Colgate-Palmolive Company
                                                                      
  Earnings per common share
  Basic                                            $ 2.41             $ 2.60
  Diluted                                          $ 2.38             $ 2.57
                                                                      
  Average common shares outstanding
  Basic                                              930.8              952.1
  Diluted                                            939.9              960.2

  Table 3
  
  Colgate-Palmolive Company
                                                          
  Condensed Consolidated Balance Sheets
  
  As of December 31, 2013 and 2012

  (Dollars in Millions) (Unaudited)

                                          December 31,         December 31,
                                          2013                 2012
                                                               
  Cash and cash equivalents               $      962           $     884
  Receivables, net                               1,636               1,668
  Inventories                                    1,425               1,365
  Other current assets                           799                 639
  Property, plant and equipment, net             4,083               3,842
  Other assets, including goodwill              4,971              4,996
  and intangibles
  Total assets                            $      13,876        $     13,394
                                                               
  Total debt                              $      5,657         $     5,230
  Other current liabilities                      3,562               3,432
  Other non-current liabilities                 2,121              2,342
  Total liabilities                              11,340              11,004
  Total Colgate-Palmolive Company                2,305               2,189
  shareholders' equity
  Noncontrolling interests                      231                201
  Total liabilities and                   $      13,876        $     13,394
  shareholders' equity
                                                               
  Supplemental Balance Sheet
  Information
  Debt less cash, cash equivalents        $      4,522         $     4,230
  and marketable securities*
  Working capital % of sales                     0.7 %               0.7 %
                                                               
* Marketable securities of $173 and $116 as of December 31, 2013 and 2012,
  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, 2013 and 2012
                                                                    
  (Dollars in Millions) (Unaudited)
                                                                    
                                               2013                 2012
                                                                    
  Operating Activities
  Net income including                         $ 2,410              $ 2,631
  noncontrolling interests
  Adjustments to reconcile net
  income including noncontrolling
  interests to net cash provided by
  operations:
  Depreciation and amortization                  439                  425
  Restructuring and termination                  182                  35
  benefits, net of cash
  Voluntary benefit plan                         (101   )             (101   )
  contributions
  Stock-based compensation expense               128                  120
  Venezuela devaluation charge                   172                  -
  Deferred income taxes                          71                   63
  Cash effects of changes in:
  Receivables                                    (37    )             19
  Inventories                                    (97    )             (21    )
  Accounts payable and other                     24                   (5     )
  accruals
  Other non-current assets and                  13                 30     
  liabilities
  Net cash provided by operations                3,204                3,196
                                                                    
  Investing Activities
  Capital expenditures                           (670   )             (565   )
  Sale of property and non-core                  15                   72
  product lines
  Purchases of marketable securities             (505   )             (545   )
  and investments
  Proceeds from sale of marketable               267                  147
  securities and investments
  Payment for acquisitions, net of               (3     )             (29    )
  cash acquired
  Other                                         6                  55     
  Net cash used in investing                     (890   )             (865   )
  activities
                                                                    
  Financing Activities
  Principal payments on debt                     (7,554 )             (5,011 )
  Proceeds from issuance of debt                 7,976                5,452
  Dividends paid                                 (1,382 )             (1,277 )
  Purchases of treasury shares                   (1,521 )             (1,943 )
  Proceeds from exercise of stock               339                478    
  options and excess tax benefits
  Net cash used in financing                     (2,142 )             (2,301 )
  activities
                                                                    
  Effect of exchange rate changes on            (94    )            (24    )
  Cash and cash equivalents
  Net increase (decrease) in Cash                78                   6
  and cash equivalents
  Cash and cash equivalents at                  884                878    
  beginning of period
  Cash and cash equivalents at end             $ 962               $ 884    
  of period
                                                                    
  Supplemental Cash Flow Information
  Free cash flow before dividends
  (Net cash provided by operations
  less Capital expenditures)
  Net cash provided by operations              $ 3,204              $ 3,196
  Less: Capital expenditures                    (670   )            (565   )
  Free cash flow before dividends              $ 2,534             $ 2,631  
                                                                    
                                                                    
  Income taxes paid                            $ 1,087              $ 1,280

 Table 5
  
 Colgate-Palmolive Company
                                                                  
 Segment Information
                                                                                        
 For the Three and Twelve Months Ended December 31, 2013 and 2012
                                                                                        
 (Dollars in Millions) (Unaudited)
                                                                                        
                           Three Months Ended                      Twelve Months Ended

                           December 31,                            December 31,
                           2013                2012                2013                 2012
  Net sales
  Oral, Personal
  and Home Care
                                                                                        
  North America            $ 772               $ 754               $ 3,072              $ 2,971
  Latin America              1,265               1,255               5,012                5,032
  Europe/South               844                 848                 3,396                3,417
  Pacific
  Asia                       572                 547                 2,472                2,264
  Africa/Eurasia            325               323               1,257              1,241  
                                                                                        
  Total Oral,
  Personal and               3,778               3,727               15,209               14,925
  Home Care
                                                                                        
  Pet Nutrition             583               559               2,211              2,160  
                                                                                        
  Total Net                $ 4,361            $ 4,286            $ 17,420            $ 17,085 
  sales
                                                                                        
                                                                                        
                           Three Months Ended                      Twelve Months Ended

                           December 31,                            December 31,
                           2013                2012                2013                 2012
  Operating
  profit
  Oral, Personal
  and Home Care
                                                                                        
  North America            $ 241               $ 230               $ 927                $ 810
  Latin America              363                 354                 1,385                1,454
  Europe/South               200                 187                 805                  747
  Pacific
  Asia                       165                 145                 698                  619
  Africa/Eurasia            76                70                268                267    
                                                                                        
  Total Oral,
  Personal and               1,045               986                 4,083                3,897
  Home Care
                                                                                        
  Pet Nutrition              153                 149                 563                  589
  Corporate^(1)             (306  )            (193  )            (1,090 )            (597   )
                                                                                        
  Total
  Operating                $ 892              $ 942              $ 3,556             $ 3,889  
  Profit

Note:

^(1) Corporate operations includes costs related to stock options and
restricted stock awards, research and development costs, Corporate overhead
costs, restructuring and related implementation costs and gains and losses on
sales of non-core product lines and assets.

Corporate Operating profit (loss) for the three months ended December 31, 2013
includes costs of $173 associated with the 2012 Restructuring Program, a
charge of $5 for a competition law matter in France related to the home care
and personal care sectors and costs of $4 related to the sale of land in
Mexico. For the three months ended December 31, 2012, Corporate Operating
profit (loss) included costs of $89 associated with the 2012 Restructuring
Program and costs of $4 related to the sale of land in Mexico.

Corporate Operating profit (loss) for the twelve months ended December 31,
2013 includes costs of $371 associated with the 2012 Restructuring Program, a
one-time $172 charge for the impact of the devaluation in Venezuela, a charge
of $23 for a competition law matter in France related to the home care and
personal care sectors and costs of $18 related to the sale of land in Mexico.
For the twelve months ended December 31, 2012, Corporate Operating profit
(loss) included costs of $89 associated with the 2012 Restructuring Program,
costs of $24 related to the sale of land in Mexico and costs of $21 associated
with various business realignment and other cost-saving initiatives.

 Table 6
  
  Colgate-Palmolive Company
                                                                                                     
  Geographic Sales Analysis Percentage Changes
                                                                                                                                  
  For the Three Months Ended December 31, 2013 vs 2012
                                                                                                                                  
  (Unaudited)
                                                                                                                                  
                                                          COMPONENTS OF SALES CHANGE
                                                                                                                                  
                                                                                                               Pricing
                                                                                                               Coupons
                         Sales            3                                                                    Consumer &
                                          Months
                         Change           Organic         As               Organic         Ex-Divested         Trade              Foreign
                                                          Reported
  Region                 As               Sales           Volume           Volume          Volume              Incentives         Exchange
                         Reported         Change
                                                                                                                                  
  Total Company          2.0 %            6.5 %           6.5 %            6.5 %           6.5 %               - %                (4.5)%
                                                                                                                                  
  Europe/South           (0.5)%           (1.5)%          2.5 %            3.0 %           3.0 %               (4.5)%             1.5 %
  Pacific
                                                                                                                                  
  Latin America          1.0 %            12.5 %          10.0 %           10.0 %          10.0 %              2.5 %              (11.5)%
                                                                                                                                  
  Asia                   4.5 %            9.0 %           10.5 %           10.5 %          10.5 %              (1.5)%             (4.5)%
                                                                                                                                  
  Africa/Eurasia         0.5 %            7.0 %           6.0 %            6.0 %           6.0 %               1.0 %              (6.5)%
                                                                                                                                  
  Total                  1.0 %            7.0 %           7.5 %            7.5 %           7.5 %               (0.5)%             (6.0)%
  International
                                                                                                                                  
  North America          2.5 %            3.0 %           4.0 %            4.0 %           4.0 %               (1.0)%             (0.5)%
                                                                                                                                  
  Total CP               1.5 %            6.5 %           7.0 %            7.0 %           7.0 %               (0.5)%             (5.0)%
  Products
                                                                                                                                  
  Hill's                 4.5 %            7.0 %           4.0 %            4.0 %           4.0 %               3.0 %              (2.5)%
                                                                                                                                  
                                                                                                                                  
  Emerging               2.0 %            10.5 %          9.5 %            9.5 %           9.5 %               1.0 %              (8.5)%
  Markets ^(1)
                                                                                                                                  
  Developed              1.0 %            2.0 %           3.0 %            3.5 %           3.5 %               (1.5)%             (0.5)%
  Markets
                                                                                                                                  
  Notes:
                                                                                                                                  
  ^(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, 2013 vs 2012
                                                                                                                                  
  (Unaudited)
                                                                                                                                  
                                                          COMPONENTS OF SALES CHANGE
                                                                                                                                  
                                                                                                               Pricing
                                                                                                               Coupons
                         Sales            12                                                                   Consumer &
                                          Months
                         Change           Organic         As               Organic         Ex-Divested         Trade              Foreign
                                                          Reported
  Region                 As               Sales           Volume           Volume          Volume              Incentives         Exchange
                         Reported         Change
                                                                                                                                  
  Total Company          2.0 %            6.0 %           5.0 %            5.0 %           5.0 %               1.0 %              (4.0)%
                                                                                                                                  
  Europe/South           (0.5)%           (0.5)%          1.5 %            2.0 %           2.0 %               (2.5)%             0.5 %
  Pacific
                                                                                                                                  
  Latin America          (0.5)%           9.5 %           5.5 %            6.0 %           6.0 %               3.5 %              (9.5)%
                                                                                                                                  
  Asia                   9.0 %            10.5 %          10.5 %           10.5 %          10.5 %              - %                (1.5)%
                                                                                                                                  
  Africa/Eurasia         1.5 %            7.0 %           8.0 %            8.0 %           8.0 %               (1.0)%             (5.5)%
                                                                                                                                  
  Total                  1.5 %            6.5 %           6.0 %            6.0 %           6.0 %               0.5 %              (5.0)%
  International
                                                                                                                                  
  North America          3.5 %            3.5 %           3.5 %            3.5 %           3.5 %               - %                - %
                                                                                                                                  
  Total CP               2.0 %            6.0 %           5.5 %            5.5 %           5.5 %               0.5 %              (4.0)%
  Products
                                                                                                                                  
  Hill's                 2.5%             5.0 %           1.5 %            1.5 %           1.5 %               3.5 %              (2.5)%
                                                                                                                                  
                                                                                                                                  
  Emerging               3.0 %            9.5 %           8.0 %            8.0 %           8.0 %               1.5 %              (6.5)%
  Markets ^(1)
                                                                                                                                  
  Developed              1.0 %            2.0 %           1.5 %            2.0 %           2.0 %               - %                (0.5)%
  Markets
                                                                                                                                  
  Notes:
                                                                                                                                  
  ^(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, 2013 and 2012

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

  Gross Profit                2013                 2012
  Gross profit,               $ 2,567              $ 2,505
  GAAP
  2012
  Restructuring                 6                    2
  Program
  Costs related to
  the sale of land             4                  4     
  in Mexico
  Gross profit,               $ 2,577             $ 2,511 
  non-GAAP
                                                                        
                                                                        Basis
                                                                        Point
  Gross Profit                2013                 2012                 Change
  Margin
  Gross profit                  58.9  %              58.4  %            50
  margin, GAAP
  2012
  Restructuring                 0.1   %              0.1   %
  Program
  Costs related to
  the sale of land             0.1   %             0.1   %            
  in Mexico
  Gross profit                 59.1  %             58.6  %            50   
  margin, non-GAAP
                                                                        
                                                                        
  Selling, General
  and                         2013                 2012
  Administrative
  Expenses
  Selling, general
  and                         $ 1,612              $ 1,487
  administrative
  expenses, GAAP
  2012
  Restructuring                (106  )             (6    )
  Program
  Selling, general
  and
  administrative              $ 1,506             $ 1,481 
  expenses,
  non-GAAP
                                                                        
                                                                        Basis
                                                                        Point
  Selling, General
  and
  Administrative              2013                 2012                 Change
  Expenses as a
  Percentage of Net
  Sales
  Selling, general
  and
  administrative                37.0  %              34.7  %            230
  expenses as a
  percentage of Net
  sales, GAAP
  2012
  Restructuring                (2.5  %)            (0.1  )%           
  Program
  Selling, general
  and
  administrative               34.5  %             34.6  %            (10  )
  expenses as a
  percentage of Net
  sales, non-GAAP
                                                                        
                                                                        
  Other (Income)              2013                 2012
  Expense, Net
  Other (income)
  expense, net,               $ 63                 $ 76
  GAAP
  2012
  Restructuring                 (61   )              (81   )
  Program
  Charge for a
  French                       (5    )             -     
  competition law
  matter
  Other (income)
  expense, net,               $ (3    )            $ (5    )
  non-GAAP
                                                                        
                                                                        
  Operating Profit            2013                 2012                 %
                                                                        Change
  Operating profit,           $ 892                $ 942                (5   %)
  GAAP
  2012
  Restructuring                 173                  89
  Program
  Charge for a
  French                        5                    -
  competition law
  matter
  Costs related to
  the sale of land             4                  4                 
  in Mexico
  Operating profit,           $ 1,074             $ 1,035             4    %
  non-GAAP
                                                                        
                                                                        Basis
                                                                        Point
  Operating Profit            2013                 2012                 Change
  Margin
  Operating profit              20.5  %              22.0  %            (150 )
  margin, GAAP
  2012
  Restructuring                 3.9   %              2.0   %
  Program
  Charge for a
  French                        0.1   %              -
  competition law
  matter
  Costs related to
  the sale of land             0.1   %             0.1   %            
  in Mexico
  Operating profit             24.6  %             24.1  %            50   
  margin, non-GAAP
                                                                        
                                                                        
  Net Income
  Attributable to             2013                 2012                 %
  Colgate-Palmolive                                                     Change
  Company
  Net income
  attributable to             $ 564                $ 598                (6   %)
  Colgate-Palmolive
  Company, GAAP
  2012
  Restructuring                 125                  70
  Program
  Charge for a
  French                        5                    -
  competition law
  matter
  Costs related to
  the sale of land             3                  3                 
  in Mexico
  Net income
  attributable to             $ 697               $ 671               4    %
  Colgate-Palmolive
  Company, non-GAAP
                                                                        
                                                                        
  Earnings Per                                                          %
  Common Share,               2013                 2012                 Change
  Diluted ^(1) (2)
  Diluted earnings
  per common share,           $ 0.60               $ 0.63               (5   %)
  GAAP
  2012
  Restructuring                 0.14                 0.07
  Program
  Charge for a
  French                        0.01                 -
  competition law
  matter
  Costs related to
  the sale of land             -                  -                 
  in Mexico
  Diluted earnings
  per common share,           $ 0.75              $ 0.70              7    %
  non-GAAP

^(1) The impact of non-GAAP adjustments on the diluted earnings per share may
not necessarily equal the difference between "GAAP" and "non-GAAP" as a result
of rounding.

^(2) As a result of the two-for-one stock split, effective May 15, 2013, all
historical per share data and number of shares were retroactively adjusted.
Diluted earnings per share were computed independently for each quarter
presented.

 Table 9
  
  Colgate-Palmolive Company
                                                         
  Non-GAAP Reconciliations
                                                                         
  For the Twelve Months Ended December 31, 2013 and 2012

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

  Gross Profit                2013                  2012
  Gross profit,               $ 10,201              $ 9,932
  GAAP
  2012
  Restructuring                 32                    2
  Program
  Costs related to
  the sale of land              15                    24
  in Mexico
  Business
  realignment and              -                   5     
  other cost-saving
  initiatives
  Gross profit,               $ 10,248             $ 9,963 
  non-GAAP
                                                                         
                                                                         Basis
                                                                         Point
  Gross Profit                2013                  2012                 Change
  Margin
  Gross profit                  58.6   %              58.1  %            50
  margin, GAAP
  2012
  Restructuring                 0.2    %              -
  Program
  Costs related to
  the sale of land             -                   0.2   %            
  in Mexico
  Gross profit                 58.8   %             58.3  %            50   
  margin, non-GAAP
                                                                         
                                                                         
  Selling, General
  and                         2013                  2012
  Administrative
  Expenses
  Selling, general
  and                         $ 6,223               $ 5,930
  administrative
  expenses, GAAP
  2012
  Restructuring                 (137   )              (6    )
  Program
  Business
  realignment and              -                   (14   )
  other cost-saving
  initiatives
  Selling, general
  and
  administrative              $ 6,086              $ 5,910 
  expenses,
  non-GAAP
                                                                         
                                                                         Basis
                                                                         Point
  Selling, General
  and
  Administrative              2013                  2012                 Change
  Expenses as a
  Percentage of Net
  Sales
  Selling, general
  and
  administrative                35.7   %              34.7  %            100
  expenses as a
  percentage of Net
  sales, GAAP
  2012
  Restructuring                 (0.8   %)             -
  Program
  Business
  realignment and              -                   (0.1  %)           
  other cost-saving
  initiatives
  Selling, general
  and
  administrative               34.9   %             34.6  %            30   
  expenses as a
  percentage of Net
  sales, non-GAAP
                                                                         
                                                                         
  Other (Income)              2013                  2012
  Expense, Net
  Other (income)
  expense, net,               $ 422                 $ 113
  GAAP
  2012
  Restructuring                 (202   )              (81   )
  Program
  Venezuela
  devaluation                   (172   )              -
  charge
  Charge for a
  French                        (23    )              -
  competition law
  matter
  Costs related to
  the sale of land              (3     )              -
  in Mexico
  Business
  realignment and              -                   (2    )
  other cost-saving
  initiatives
  Other (income)
  expense, net,               $ 22                 $ 30    
  non-GAAP
                                                                         
                                                                         
  Operating Profit            2013                  2012                 %
                                                                         Change
  Operating profit,           $ 3,556               $ 3,889              (9   %)
  GAAP
  2012
  Restructuring                 371                   89
  Program
  Venezuela
  devaluation                   172                   -
  charge
  Charge for a
  French                        23                    -
  competition law
  matter
  Costs related to
  the sale of land              18                    24
  in Mexico
  Business
  realignment and              -                   21                
  other cost-saving
  initiatives
  Operating profit,           $ 4,140              $ 4,023             3    %
  non-GAAP
                                                                         
                                                                         Basis
                                                                         Point
  Operating Profit             2013                2012              Change
  Margin
  Operating profit              20.4   %              22.8  %            (240 )
  margin, GAAP
  2012
  Restructuring                 2.2    %              0.5   %
  Program
  Venezuela
  devaluation                   1.0    %              -
  charge
  Charge for a
  French                        0.1    %              -
  competition law
  matter
  Costs related to
  the sale of land              0.1    %              0.1   %
  in Mexico
  Business
  realignment and              -                   0.1   %            
  other cost-saving
  initiatives
  Operating profit             23.8   %             23.5  %            30   
  margin, non-GAAP
                                                                         
                                                                         
  Net Income
  Attributable to             2013                  2012                 %
  Colgate-Palmolive                                                      Change
  Company
  Net income
  attributable to             $ 2,241               $ 2,472              (9   %)
  Colgate-Palmolive
  Company, GAAP
  2012
  Restructuring                 278                   70
  Program
  Venezuela
  devaluation                   111                   -
  charge
  Charge for a
  French                        23                    -
  competition law
  matter
  Costs related to
  the sale of land              12                    18
  in Mexico
  Business
  realignment and              -                   14                
  other cost-saving
  initiatives
  Net income
  attributable to             $ 2,665              $ 2,574             4    %
  Colgate-Palmolive
  Company, non-GAAP
                                                                         
                                                                         
  Earnings Per                                                           %
  Common Share,               2013                  2012                 Change
  Diluted ^(1) (2)
  Diluted earnings
  per common share,           $ 2.38                $ 2.57               (7   %)
  GAAP
  2012
  Restructuring                 0.30                  0.07
  Program
  Venezuela
  devaluation                   0.12                  -
  charge
  Charge for a
  French                        0.03                  -
  competition law
  matter
  Costs related to
  the sale of land              0.01                  0.02
  in Mexico
  Business
  realignment and              -                   0.02              
  other cost-saving
  initiatives
  Diluted earnings
  per common share,           $ 2.84               $ 2.68              6    %
  non-GAAP

^(1) The impact of non-GAAP adjustments on the diluted earnings per share may
not necessarily equal the difference between "GAAP" and "non-GAAP" as a result
of rounding.

^(2) As a result of the two-for-one stock split, effective May 15, 2013, all
historical per share data and number of shares were retroactively adjusted.
Diluted earnings per share were computed independently for each quarter and
the year to date period presented. As a result of the stock split, changes in
shares outstanding during the year and rounding, the sum of the quarters'
earnings per share may not necessarily equal the earnings per share for the
year to date period.

Contact:

Colgate-Palmolive Company
Bina Thompson, 212-310-3072
Hope Spiller, 212-310-2291
 
Press spacebar to pause and continue. Press esc to stop.