Colgate Announces 2nd Quarter 2014 Results

  Colgate Announces 2nd Quarter 2014 Results

               Organic Sales Growth In All Operating Divisions

Business Wire

NEW YORK -- July 31, 2014

Colgate-Palmolive Company (NYSE:CL) today reported worldwide Net sales of
$4,352 million in second quarter 2014, even with second quarter 2013. Global
unit volume grew 2.5%, pricing increased 1.5% and foreign exchange was
negative 4.0%. Organic sales (Net sales excluding foreign exchange,
acquisitions and divestments) grew 4.0%.

Net income and Diluted earnings per share in second quarter 2014 were $622
million and $0.67, respectively. Net income in second quarter 2014 included
$54 million ($0.06 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”) and costs associated
with the sale of land in Mexico.

Net income and Diluted earnings per share in second quarter 2013 were $561
million and $0.60, respectively. Net income in second quarter 2013 included
aftertax charges of $101 million ($0.10 per diluted share) resulting from the
items described in Table 8.

Excluding the above noted items in both periods, Net income in second quarter
2014 was $676 million, an increase of 2% versus second quarter 2013, and
Diluted earnings per share in second quarter 2014 was $0.73, an increase of 4%
versus second quarter 2013.

Gross profit margin was 58.6% in second quarter 2014 versus 58.3% in the year
ago quarter. Excluding the above noted items in both periods, Gross profit
margin was 58.8% in second quarter 2014, an increase of 20 basis points versus
the year ago quarter, as higher pricing, cost savings from the Company’s
funding-the-growth initiatives and cost savings from the 2012 Restructuring
Program more than offset higher raw and packaging material costs, which
included foreign exchange transaction costs.

Selling, general and administrative expenses were 34.6% of Net sales in second
quarter 2014 versus 35.1% of Net sales in second quarter 2013. Excluding the
above noted items in both periods, Selling, general and administrative
expenses decreased by 40 basis points to 34.4% of Net sales in second quarter
2014, as the decrease in advertising investment was partially offset by an
increase in overhead expenses, both as a percentage of Net sales. Worldwide
advertising investment decreased 5.8% to $468 million versus the high level in
the year ago quarter.

Operating profit increased 8% to $980 million in second quarter 2014 compared
to $906 million in second quarter 2013. Excluding the above noted items in
both periods, Operating profit increased 2% to $1,056 million.

Net cash provided by operations year to date was $1,389 million compared to
$1,325 million in the comparable 2013 period, due to strong operating
earnings. 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%, an increase of 90 basis points versus the
year ago period, primarily due to higher inventory levels driven by
initiatives undertaken as part of the 2012 Restructuring Program and the
timing of new product launches.

Ian Cook, Chairman, President and Chief Executive Officer, commented on the
results excluding the 2014 and 2013 items noted above, “We are pleased to have
achieved another quarter of broad-based organic sales growth and higher
profitability. Gross profit margin, operating profit margin and net income as
a percent to sales all increased versus the year ago period.

“All operating divisions contributed to the 4.0% organic sales growth, led by
the emerging markets where organic sales grew 6.5%.

“Colgate’s leading global market shares in toothpaste and manual toothbrushes
remain strong at 44.4% and 33.5%, respectively, on a year-to-date basis. We
continue to make great progress in mouthwash, with our global market share in
that category reaching a record high at 17.2% year to date, up 80 basis points
versus the year ago period."

As previously disclosed, in the first quarter of 2014, the Company recorded a
remeasurement charge as a result of the changes Venezuela enacted to its
foreign exchange system. The SICAD I rate has since revalued slightly to a
quarter-end rate of 10.60 bolivares per dollar. The impact of the
remeasurement at the new rate was not significant to the Company’s second
quarter 2014 results. Assuming this rate remains for the balance of the year,
the Company still expects the ongoing impact on diluted earnings per share to
be approximately $0.03 per quarter in the second half of 2014.

In July 2014, the Company received notice of an adverse decision in a foreign
court regarding a tax position taken in prior years. Although it plans to
appeal this decision the Company, as required, reassessed its tax position in
light of the decision and expects to incur a one-time $68 million income tax
charge in third quarter 2014.

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

In closing, Mr. Cook commented on the Company’s outlook in light of the
ongoing impact of the changes to Venezuela’s foreign exchange system and
excluding the other 2014 and 2013 items noted above, “Looking forward, we
anticipate another year of strong organic sales growth and gross margin
expansion in 2014, and expect diluted earnings per share for the year to grow
4% to 5% on a dollar basis.”

At 11:00 a.m. ET today, Colgate will host a conference call to elaborate on
second 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 second quarter
2014 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 1.0% in second quarter 2014. Unit volume
increased 2.5% with 1.0% lower pricing due to increased promotional activities
and 0.5% negative foreign exchange. Organic sales increased 1.5% during the
quarter.

Operating profit in North America increased 2% in second quarter 2014 to $231
million, or 20 basis points to 30.0% 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 decreasein Gross profit, both as a
percentage of Net sales. This decrease in Gross profit was primarily due to
higher raw and packaging material costs and pricing, which were partially
offset by cost savings from the Company’s funding-the-growth initiatives. 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.

In the U.S., new product launches are contributing to volume growth. Market
share gains year to date were seen in manual toothbrushes, mouthwash, liquid
cleaners and fabric conditioners. In toothpaste, Colgate Optic White, Colgate
Optic White Platinum Whiten & Protect, Colgate MaxFresh Cool Scrub and Tom’s
of Maine toothpastes had strong sales during the quarter.

In manual toothbrushes, Colgate continued its brand market leadership in the
U.S. with its market share in that category reaching a record 41.3% year to
date, up 3.6 share points versus the year ago period. This success was driven
by strong sales of Colgate Optic White Toothbrush + Built-In Whitening Pen,
Colgate 360° Optic White, Colgate 360° Total Advanced Floss-Tip bristles 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,
Fabuloso Fiesta Orange liquid cleaner and Suavitel Fast Dry fabric
conditioner.

Latin America (27% of Company Sales)

Latin America Net sales decreased 4.0% in second quarter 2014. Unit volume
increased 3.0% with 5.0% higher pricing and 12.0% negative foreign exchange.
Volume gains were led by Venezuela, Mexico and Colombia and were partially
offset by volume declines in Brazil. Organic sales for Latin America increased
8.0% during the quarter.

Operating profit in Latin America decreased 12% in second quarter 2014 to $311
million, or 220 basis points to 25.3% of Net sales.This decrease in Operating
profit was primarily due to a decrease in Gross profit and an increase in
Selling, general and administrative expenses, both as a percentage of Net
sales. This decrease in Gross profit was due to higher raw and packaging
material costs, which included foreign exchange transaction costs, partially
offset by cost savings from the Company’s funding-the-growth initiatives and
pricing. This increase in Selling, general and administrative expenses was
primarily due to higher overhead expenses.

Colgate’s strong leadership in toothpaste throughout Latin America continued
during the quarter with Chile, Peru and Puerto Rico achieving record high
market shares year to date. Strong sales of Colgate Luminous White, Colgate
Luminous White Advanced and Colgate Maximum Cavity Protection plus Neutrazucar
toothpastes drove volume growth throughout the region. Colgate’s leadership in
the manual toothbrush market continued throughout the region, driven by strong
sales of Colgate 360° Luminous White, Colgate Slim Soft and Colgate 360°
Interdental manual toothbrushes. In mouthwash, Colgate’s strong market share
performance continued throughout the region, driven by the success of 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, Protex Omega 3, Palmolive Naturals Argan Oil and Palmolive
Naturals Yogurt and Royal Jelly bar soaps, Suavitel Complete fabric
conditioner, Axion Magnetic Power and Axion Goodbye Odors dish liquids and
Fabuloso Apple liquid cleaner.

Europe/South Pacific (20% of Company Sales)

Europe/South Pacific Net sales increased 6.0% in second quarter 2014. Unit
volume increased 4.5% with 2.5% lower pricing due to increased promotional
activities and 4.0% positive foreign exchange. Volume gains were led by
Australia and France. Organic sales for Europe/South Pacific increased 2.5%.

Operating profit in Europe/South Pacific increased 20% in second quarter 2014
to $227 million, or 310 basis points to 26.0% 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 driven by cost
savings from the Company’s funding-the-growth initiatives, cost savings from
the Company’s 2012 Restructuring Program and lower raw and packaging material
costs, which were partially offset by 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 strengthened its oral care leadership in the Europe/South Pacific
region with toothpaste share gains led by Switzerland, Poland, Germany,
Portugal, Bosnia, Serbia, Australia and New Zealand. Successful premium
products driving share gains include Colgate Max White One Optic, Colgate Max
White One Luminous, Colgate Maximum Cavity Protection plus Sugar Acid
Neutralizer, elmex Sensitive Plus Gentle Whitening and Colgate Max Fresh
Acticlean 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 Triple Action and meridol mouthwashes, Palmolive
Naturals Macadamia Oil shower gel and liquid hand soap, Palmolive Naturals
Magic Softness foaming liquid hand soap, Ajax All Usage liquid cleaner, Paic
Integral 5 dish liquid and Soupline Perfect Glide fabric conditioner.

Asia (15% of Company Sales)

Asia Net sales decreased 1.5% during second quarter 2014. Unit volume
increased 2.5%, with 0.5% higher pricing and 4.5% negative foreign exchange.
Volume gains were led by the Philippines, India and Thailand. Organic sales
for Asia increased 3.0%.

Operating profit in Asia increased 3% in second quarter 2014 to $178 million,
or 120 basis points to 29.2% 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 decreasein Gross profit, both as a
percentage of Net sales. This decrease in Gross profit was primarily due to
higher raw and packaging material costs, which included foreign exchange
transaction costs, and higher manufacturing costs, partially offset by cost
savings from the Company’s funding-the-growth initiatives and pricing. This
decrease in Selling, general and administrative expenses was due to decreased
advertising investment, which was partially offset by higher overhead
expenses.

Colgate continued its toothpaste leadership in Asia, driven by market share
gains in India, Thailand, the Philippines and Malaysia. Successful new
products including Colgate 360° Charcoal Deep Clean, Colgate Optic White,
Colgate 360° Enamel, Colgate Active Salt Healthy White and Colgate Maximum
Cavity Protection plus Sugar Acid Neutralizer toothpastes contributed to
volume growth in the region.

Successful new products contributing to volume growth in other categories in
the region include Colgate Slim Soft Charcoal and Colgate 360° Charcoal manual
toothbrushes, Colgate Plax Fresh Jasmine Tea, Colgate Plax Fruity Fresh and
Darlie mouthwashes, Palmolive Naturals body wash and Palmolive Naturals
Beautifully Long shampoo and conditioner.

Africa/Eurasia (7% of Company Sales)

Africa/Eurasia Net sales decreased 1.0% during second quarter 2014. Unit
volume increased 5.5% with 1.0% higher pricing and 7.5% negative foreign
exchange. Volume gains were led by South Africa, Turkey and Russia. Organic
sales for Africa/Eurasia increased 6.5%.

Operating profit in Africa/Eurasia decreased 11% in second quarter 2014 to $58
million, or 210 basis points to 18.8% of Net sales. This decrease in Operating
profit was primarily due to a decrease in Gross profit and an increase in
Selling, general and administrative expenses, both as a percentage of Net
sales.This decrease in Gross profit was primarily due to higher raw and
packaging material costs, driven by higher foreign exchange transaction costs,
partially offset by cost savings from the Company’s funding-the-growth
initiatives, cost savings from the Company’s 2012 Restructuring Program and
pricing. This increase in Selling, general and administrative expenses was due
to higher overhead expenses, partially offset by decreased advertising
investment.

Colgate continued its toothpaste leadership in Africa/Eurasia, driven by
market share gains in Sub Saharan Africa, Kenya, Saudi Arabia, United Arab
Emirates, Kuwait, the Central Asia/Caucasus region and Ukraine. Successful
products contributing to volume growth in the region include Colgate Total
Interdental, Colgate Altai Herbs, Colgate Optic White Instant and Colgate
Maximum Cavity Protection plus Sugar Acid Neutralizer toothpastes, Colgate
Slim Soft Charcoal manual toothbrush, Colgate Altai Herbs and Colgate Plax
Fresh Tea mouthwashes and Palmolive Gourmet Spa, Palmolive Naturals Altai
Herbs and Protex for Men shower gels.

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

Hill’s Net sales increased 2.0% during second quarter 2014. Unit volume
decreased 1.5% with 4.0% higher pricing and 0.5% negative foreign exchange.
Volume declines in the United States and Japan were partially offset by volume
gains in Russia. Hill’s organic sales increased 2.5%.

Hill’s Operating profit increased 7% in second quarter 2014 to $146 million,
or 130 basis points to 26.1% of Net sales.This increase in Operating profit
was primarily due to an increase in Gross profit and a decrease in Other
(income) expense, net, which were partially offset by an increase in Selling,
general and administrative expenses, all as a percentage of Net sales. This
increase in Gross profit was primarily driven by cost savings from the
Company’s funding-the-growth initiatives and pricing, partially offset by
higher raw and packaging material costs, due in part to formulation changes
and foreign exchange transaction costs. This increase in Selling, general and
administrative expenses was due to increased advertising investment and higher
overhead expenses, the latter due to increased investment in customer
development initiatives. This decrease in Other (income) expense, net was in
part due to the expiration of a third party royalty agreement.

New product introductions driving volume growth in the U.S. include Hill’s
Ideal Balance Slim & Healthy, Feline Indoor and Hairball, Hill’s Science Diet
Perfect Weight, Sensitive Stomach and Skin and Grain Free, and Hill’s
Prescription Diet c/d Urinary Stress and c/d Multicare Ocean Fish Flavor.

New product introductions driving volume growth internationally include Hill’s
Prescription Diet Metabolic, c/d Urinary Stress and c/d Multicare Ocean Fish
Flavor, Hill’s Ideal Balance, Hill’s Science Plan Small & Miniature Breed, and
the relaunch of Hill’s Science Diet with improved taste.

                                     ***

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

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 except as required by law. 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, 2013) 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 six months ended June 30, 2014 vs 2013
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
related to the 2012 Restructuring Program, charges related to the effective
devaluation as a result of the changes to Venezuela’s foreign exchange system
in 2014, charges related to the devaluation in Venezuela in 2013, costs
related to the sale of land in Mexico and a charge associated with a European
competition law matter (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 six months ended June 30, 2014 and 2013
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 six months ended June 30, 2014 and 2013 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 second quarter results.)

                                                              
                                                                    Table 1

Colgate-Palmolive Company

Condensed Consolidated Income Statements
                                                                     
For the Three Months Ended June 30, 2014 and 2013
                                                                     
  (Dollars in Millions Except Per Share Amounts) (Unaudited)
                                                                     
                                                       2014          2013
                                                                     
  Net sales                                            $ 4,352       $ 4,346
                                                                     
  Cost of sales                                          1,800         1,812
                                                                     
  Gross profit                                           2,552         2,534
                                                                     
  Gross profit margin                                    58.6  %       58.3  %
                                                                     
  Selling, general and administrative                    1,507         1,526
  expenses
                                                                     
  Other (income) expense, net                            65            102
                                                                     
  Operating profit                                       980           906
                                                                     
  Operating profit margin                                22.5  %       20.8  %
                                                                     
  Interest (income) expense, net                         9             (5    )
                                                                     
  Income before income taxes                             971           911
                                                                     
  Provision for income taxes                             310           307
                                                                     
  Effective tax rate                                     31.9  %       33.7  %
                                                                     
  Net income including noncontrolling                    661           604
  interests
                                                                     
  Less: Net income attributable to                       39            43
  noncontrolling interests
                                                                     
  Net income attributable to Colgate-Palmolive         $ 622         $ 561
  Company
                                                                     
  Earnings per common share
  Basic                                                $ 0.68        $ 0.60
  Diluted                                              $ 0.67        $ 0.60
                                                                     
  Average common shares outstanding
  Basic                                                  916.1         933.1
  Diluted                                                925.9         942.3
                                                                             

                                                              
                                                                    Table 2

Colgate-Palmolive Company
                                                                     
Condensed Consolidated Income Statements
                                                                     
For the Six Months Ended June 30, 2014 and 2013
                                                                     
(Dollars in Millions Except Per Share Amounts) (Unaudited)
                                                                     
                                                       2014          2013
                                                                     
  Net sales                                            $ 8,677       $ 8,661
                                                                     
  Cost of sales                                          3,601         3,612
                                                                     
  Gross profit                                           5,076         5,049
                                                                     
  Gross profit margin                                    58.5  %       58.3  %
                                                                     
  Selling, general and administrative expenses           3,051         3,062
                                                                     
  Other (income) expense, net                            411           339
                                                                     
  Operating profit                                       1,614         1,648
                                                                     
  Operating profit margin                                18.6  %       19.0  %
                                                                     
  Interest (income) expense, net                         16            (8    )
                                                                     
  Income before income taxes                             1,598         1,656
                                                                     
  Provision for income taxes                             505           546
                                                                     
  Effective tax rate                                     31.6  %       33.0  %
                                                                     
  Net income including noncontrolling                    1,093         1,110
  interests
                                                                     
  Less: Net income attributable to                       83            89
  noncontrolling interests
                                                                     
  Net income attributable to Colgate-Palmolive         $ 1,010       $ 1,021
  Company
                                                                     
  Earnings per common share
  Basic                                                $ 1.10        $ 1.09
  Diluted                                              $ 1.09        $ 1.08
                                                                     
  Average common shares outstanding
  Basic                                                  917.8         934.8
  Diluted                                                927.3         943.6
                                                                             

                                                             
                                                                  Table 3

Colgate-Palmolive Company
                                                                   
Condensed Consolidated Balance Sheets
                                                                   
As of June 30, 2014, December 31, 2013 and June 30, 2013
                                                                   
(Dollars in Millions) (Unaudited)
                                                                   
                                                                   
                                       June 30,     December 31,   June 30,
                                       2014         2013           2013
                                                                   
  Cash and cash equivalents            $ 1,161      $  962         $ 884
  Receivables, net                       1,803         1,636         1,778
  Inventories                            1,508         1,425         1,440
  Other current assets                   702           799           765
  Property, plant and equipment,         4,077         4,083         3,776
  net
  Other assets, including               4,737       4,971       4,844  
  goodwill and intangibles
  Total assets                         $ 13,988    $  13,876     $ 13,487 
                                                                   
  Total debt                           $ 6,061      $  5,657       $ 5,628
  Other current liabilities              3,741         3,562         3,848
  Other non-current liabilities         2,115       2,121       2,207  
  Total liabilities                      11,917        11,340        11,683
  Total Colgate-Palmolive                1,779         2,305         1,531
  Company shareholders' equity
  Noncontrolling interests              292         231         273    
  Total liabilities and                $ 13,988    $  13,876     $ 13,487 
  shareholders' equity
                                                                   
  Supplemental Balance Sheet
  Information
  Debt less cash, cash
  equivalents and marketable           $ 4,745      $  4,522       $ 4,570
  securities*
  Working capital % of sales             0.7    %      0.7     %     (0.2   )%
                                                                            

    Marketable securities of $155, $173 and $174 as of June 30, 2014, December
*  31, 2013 and June 30, 2013, respectively, are included in Other current
    assets.
    

                                                               
                                                                   Table 4

Colgate-Palmolive Company
                                                                    
Condensed Consolidated Statements of Cash Flows
                                                                    
For the Six Months Ended June 30, 2014 and 2013
                                                                    
(Dollars in Millions) (Unaudited)
                                                                    
                                                       2014         2013
                                                                    
  Operating Activities
  Net income including noncontrolling interests        $ 1,093      $ 1,110
  Adjustments to reconcile net income including
  noncontrolling interests to net cash provided
  by operations:
  Depreciation and amortization                          215          221
  Restructuring and termination benefits, net of         68           105
  cash
  Voluntary benefit plan contributions                   -            (100   )
  Stock-based compensation expense                       54           52
  Venezuela remeasurement charges                        266          172
  Deferred income taxes                                  (37    )     (48    )
  Cash effects of changes in:
  Receivables                                            (198   )     (194   )
  Inventories                                            (90    )     (118   )
  Accounts payable and other accruals                    (8     )     89
  Other non-current assets and liabilities              26         36     
  Net cash provided by operations                        1,389        1,325
                                                                    
  Investing Activities
  Capital expenditures                                   (314   )     (243   )
  Purchases of marketable securities and                 (165   )     (246   )
  investments
  Proceeds from sale of marketable securities            177          92
  and investments
  Payment for acquisitions, net of cash acquired         (25    )     -
  Other                                                 13         (1     )
  Net cash used in investing activities                  (314   )     (398   )
                                                                    
  Financing Activities
  Principal payments on debt                             (4,282 )     (3,425 )
  Proceeds from issuance of debt                         4,707        3,803
  Dividends paid                                         (662   )     (625   )
  Purchases of treasury shares                           (746   )     (771   )
  Proceeds from exercise of stock options and           153        172    
  excess tax benefits
  Net cash used in financing activities                  (830   )     (846   )
                                                                    
  Effect of exchange rate changes on Cash and           (46    )    (81    )
  cash equivalents
  Net increase (decrease) in Cash and cash               199          -
  equivalents
  Cash and cash equivalents at beginning of             962        884    
  period
  Cash and cash equivalents at end of period           $ 1,161     $ 884    
                                                                    
  Supplemental Cash Flow Information
  Free cash flow before dividends (Net cash
  provided by operations less Capital
  expenditures)
  Net cash provided by operations                      $ 1,389      $ 1,325
  Less: Capital expenditures                            (314   )    (243   )
  Free cash flow before dividends                      $ 1,075     $ 1,082  
                                                                    
                                                                    
  Income taxes paid                                    $ 514        $ 561
                                                                             

                                                                 Table 5
                           
Colgate-Palmolive Company
                                                                     
Segment Information
                                                                     
For the Three and Six Months Ended June 30, 2014 and 2013
                                                                     
(Dollars in Millions) (Unaudited)
                                                                     
                                                                     
                                 Three Months Ended      Six Months Ended

                                 June 30,                June 30,
                                 2014        2013        2014        2013
  Net Sales
  Oral, Personal and
  Home Care
                                                                     
  North America                  $ 770       $ 762       $ 1,555     $ 1,526
  Latin America                    1,231       1,282       2,383       2,496
  Europe/South Pacific             873         824         1,738       1,672
  Asia                             610         618         1,282       1,273
  Africa/Eurasia                  308       311       606       611   
                                                                     
  Total Oral, Personal             3,792       3,797       7,564       7,578
  and Home Care
                                                                     
  Pet Nutrition                   560       549       1,113     1,083 
                                                                     
  Total Net Sales                $ 4,352    $ 4,346    $ 8,677    $ 8,661 
                                                                     
                                                                     
                                 Three Months Ended      Six Months Ended

                                 June 30,                June 30,
                                 2014        2013        2014        2013
  Operating Profit
  Oral, Personal and
  Home Care
                                                                     
  North America                  $ 231       $ 227       $ 447       $ 442
  Latin America                    311         352         601         664
  Europe/South Pacific             227         189         444         389
  Asia                             178         173         371         359
  Africa/Eurasia                  58        65        117       127   
                                                                     
  Total Oral, Personal             1,005       1,006       1,980       1,981
  and Home Care
                                                                     
  Pet Nutrition                    146         136         290         272
  Corporate^(1)                   (171  )    (236  )    (656  )    (605  )
                                                                     
  Total Operating Profit         $ 980      $ 906      $ 1,614    $ 1,648 
                                                                     

 Note:
  ^(1) Corporate operations includes costs related to stock options and
  restricted stock units, 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 June 30, 2014
  includes charges of $74 related to the 2012 Restructuring Program and costs
  of $2 related to the sale of land in Mexico. For the three months ended June
  30, 2013, Corporate Operating profit (loss) included charges of $102 related
  to the 2012 Restructuring Program, costs of $6 related to the sale of land
  in Mexico and a charge of $18 for a competition law matter in France related
  to the home care and personal care sectors.
  
  Corporate Operating profit (loss) for the six months ended June 30, 2014
  includes charges of $176 related to the 2012 Restructuring Program, a charge
  of $266 related to the Venezuela remeasurement and costs of $3 related to
  the sale of land in Mexico. For the six months ended June 30, 2013,
  Corporate Operating profit (loss) included charges of $168 related to the
  2012 Restructuring Program, a charge of $172 related to the Venezuela
  remeasurement, costs of $11 related to the sale of land in Mexico and a
  charge of $18 for a competition law matter in France related to the home
  care and personal care sectors.
  

                                                                                   
                                                                                         Table 6
                            
Colgate-Palmolive Company
                                                                                          
Geographic Sales Analysis Percentage Changes
                                                                                          
For the Three Months Ended June 30, 2014 vs 2013
                                                                                          
(Unaudited)
                                                                                          
                                                                                          
                                                                                          
                                          COMPONENTS OF SALES CHANGE
                                                                                          
                                                                             Pricing
                                                                             Coupons
                     Sales                                                  Consumer &
                     Change     Organic   As         Organic   Ex-Divested   Trade        Foreign
                                          Reported
  Region             As         Sales     Volume     Volume    Volume        Incentives   Exchange
                     Reported   Change
                                                                                          
  Total Company      -     %    4.0  %    2.5   %    2.5  %    2.5    %      1.5    %     (4.0  )%
                                                                                          
  Europe/South       6.0   %    2.5  %    4.5   %    5.0  %    5.0    %      (2.5   )%    4.0   %
  Pacific
                                                                                          
  Latin America      (4.0  )%   8.0  %    3.0   %    3.0  %    3.0    %      5.0    %     (12.0 )%
                                                                                          
  Asia               (1.5  )%   3.0  %    2.5   %    2.5  %    2.5    %      0.5    %     (4.5  )%
                                                                                          
  Africa/Eurasia     (1.0  )%   6.5  %    5.5   %    5.5  %    5.5    %      1.0    %     (7.5  )%
                                                                                          
  Total              (0.5  )%   5.0  %    3.5   %    3.5  %    3.5    %      1.5    %     (5.5  )%
  International
                                                                                          
  North America      1.0   %    1.5  %    2.5   %    2.5  %    2.5    %      (1.0   )%    (0.5  )%
                                                                                          
  Total CP           -     %    4.5  %    3.5   %    3.5  %    3.5    %      1.0    %     (4.5  )%
  Products
                                                                                          
  Hill's             2.0   %    2.5  %    (1.5  )%   (1.5 )%   (1.5   )%     4.0    %     (0.5  )%
                                                                                          
                                                                                          
  Emerging           (2.0  )%   6.5  %    3.5   %    3.5  %    3.5    %      3.0    %     (8.5  )%
  Markets ^(1)
                                                                                          
  Developed          3.0   %    1.5  %    2.0   %    2.0  %    2.0    %      (0.5   )%    1.5   %
  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 Six Months Ended June 30, 2014 vs 2013
                                                                                          
(Unaudited)
                                                                                          
                                                                                          
                                                                                          
                                          COMPONENTS OF SALES CHANGE
                                                                                          
                                                                             Pricing
                                                                             Coupons
                     Sales                                                  Consumer &
                     Change     Organic   As         Organic   Ex-Divested   Trade        Foreign
                                          Reported
  Region             As         Sales     Volume     Volume    Volume        Incentives   Exchange
                     Reported   Change
                                                                                          
  Total Company      -     %    5.5  %    4.0   %    4.0  %    4.0    %      1.5    %     (5.5  )%
                                                                                          
  Europe/South       4.0   %    2.0  %    4.0   %    4.5  %    4.5    %      (2.5   )%    2.5   %
  Pacific
                                                                                          
  Latin America      (4.5  )%   9.5  %    4.0   %    4.0  %    4.0    %      5.5    %     (14.0 )%
                                                                                          
  Asia               0.5   %    5.5  %    5.0   %    5.0  %    5.0    %      0.5    %     (5.0  )%
                                                                                          
  Africa/Eurasia     (1.0  )%   8.0  %    7.5   %    7.5  %    7.5    %      0.5    %     (9.0  )%
                                                                                          
  Total              (0.5  )%   6.5  %    4.5   %    4.5  %    4.5    %      2.0    %     (7.0  )%
  International
                                                                                          
  North America      2.0   %    2.5  %    3.5   %    3.5  %    3.5    %      (1.0   )%    (0.5  )%
                                                                                          
  Total CP           -     %    5.5  %    4.5   %    4.5  %    4.5    %      1.0    %     (5.5  )%
  Products
                                                                                          
  Hill's             3.0   %    4.0  %    1.0   %    1.0  %    1.0    %      3.0    %     (1.0  )%
                                                                                          
                                                                                          
  Emerging           (2.0  )%   8.0  %    5.0   %    5.0  %    5.0    %      3.0    %     (10.0 )%
  Markets ^(1)
                                                                                          
  Developed          2.5   %    2.0  %    2.5   %    2.5  %    2.5    %      (0.5   )%    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 June 30, 2014 and 2013
                                                                   
(Dollars in Millions Except Per Share Amounts) (Unaudited)
                                                                   
                                                                   
                                                                   
  Gross Profit                           2014         2013
  Gross profit, GAAP                     $ 2,552      $ 2,534
  2012 Restructuring Program               6            10
  Costs related to the sale of            2          4     
  land in Mexico
  Gross profit, non-GAAP                 $ 2,560     $ 2,548 
                                                                   
                                                                   Basis Point
  Gross Profit Margin                    2014         2013         Change
  Gross profit margin, GAAP                58.6  %      58.3  %    30
  2012 Restructuring Program               0.2   %      0.2   %
  Costs related to the sale of            -     %     0.1   %    
  land in Mexico
  Gross profit margin, non-GAAP           58.8  %     58.6  %    20      
                                                                   
                                                                   
  Selling, General and                   2014         2013
  Administrative Expenses
  Selling, general and                   $ 1,507      $ 1,526
  administrative expenses, GAAP
  2012 Restructuring Program              (12   )     (14   )
  Selling, general and
  administrative expenses,               $ 1,495     $ 1,512 
  non-GAAP
                                                                   
                                                                   Basis Point
  Selling, General and
  Administrative Expenses as a           2014         2013         Change
  Percentage of Net Sales
  Selling, general and
  administrative expenses as a             34.6  %      35.1  %    (50     )
  percentage of Net sales, GAAP
  2012 Restructuring Program              (0.2  %)    (0.3  %)   
  Selling, general and
  administrative expenses as a            34.4  %     34.8  %    (40     )
  percentage of Net sales,
  non-GAAP
                                                                   
                                                                   
  Other (Income) Expense, Net            2014         2013
  Other (income) expense, net,           $ 65         $ 102
  GAAP
  2012 Restructuring Program               (56   )      (78   )
  Costs related to the sale of             -            (2    )
  land in Mexico
  Charge for a French competition         -          (18   )
  law matter
  Other (income) expense, net,           $ 9         $ 4     
  non-GAAP
                                                                   
                                                                   
  Operating Profit                       2014         2013         % Change
  Operating profit, GAAP                 $ 980        $ 906        8       %
  2012 Restructuring Program               74           102
  Costs related to the sale of             2            6
  land in Mexico
  Charge for a French competition         -          18        
  law matter
  Operating profit, non-GAAP             $ 1,056     $ 1,032     2       %
                                                                   
                                                                   Basis Point
  Operating Profit Margin                2014         2013         Change
  Operating profit margin, GAAP            22.5  %      20.8  %    170
  2012 Restructuring Program               1.7   %      2.4   %
  Costs related to the sale of             0.1   %      0.1   %
  land in Mexico
  Charge for a French competition         -     %     0.4   %    
  law matter
  Operating profit margin,                24.3  %     23.7  %    60      
  non-GAAP
                                                                   
                                                                   
  Net Income Attributable to             2014         2013         % Change
  Colgate-Palmolive Company
  Net income attributable to             $ 622        $ 561        11      %
  Colgate-Palmolive Company, GAAP
  2012 Restructuring Program               53           79
  Costs related to the sale of             1            4
  land in Mexico
  Charge for a French competition         -          18        
  law matter
  Net income attributable to
  Colgate-Palmolive Company,             $ 676       $ 662       2       %
  non-GAAP
                                                                   
                                                                   
  Diluted Earnings Per Common            2014         2013         % Change
  Share^(1)
  Diluted earnings per common            $ 0.67       $ 0.60       12      %
  share, GAAP
  2012 Restructuring Program               0.06         0.08
  Costs related to the sale of             -            -
  land in Mexico
  Charge for a French competition         -          0.02      
  law matter
  Diluted earnings per common            $ 0.73      $ 0.70      4       %
  share, non-GAAP
                                                                           

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

                                                             
                                                                  Table 9

Colgate-Palmolive Company
                                                                   
Non-GAAP Reconciliations
                                                                   
For the Six Months Ended June 30, 2014 and 2013
                                                                   
(Dollars in Millions Except Per Share Amounts) (Unaudited)
                                                                   
                                                                   
                                                                   
  Gross Profit                           2014         2013
  Gross profit, GAAP                     $ 5,076      $ 5,049
  2012 Restructuring Program               16           18
  Costs related to the sale of            3          8     
  land in Mexico
  Gross profit, non-GAAP                 $ 5,095     $ 5,075 
                                                                   
                                                                   Basis Point
  Gross Profit Margin                    2014         2013         Change
  Gross profit margin, GAAP                58.5  %      58.3  %    20
  2012 Restructuring Program               0.2   %      0.2   %
  Costs related to the sale of            -     %     0.1   %    
  land in Mexico
  Gross profit margin, non-GAAP           58.7  %     58.6  %    10     
                                                                   
                                                                   
  Selling, General and                   2014         2013
  Administrative Expenses
  Selling, general and                   $ 3,051      $ 3,062
  administrative expenses, GAAP
  2012 Restructuring Program              (29   )     (22   )
  Selling, general and
  administrative expenses,               $ 3,022     $ 3,040 
  non-GAAP
                                                                   
                                                                   Basis Point
  Selling, General and
  Administrative Expenses as a           2014         2013         Change
  Percentage of Net Sales
  Selling, general and
  administrative expenses as a             35.2  %      35.4  %    (20    )
  percentage of Net sales, GAAP
  2012 Restructuring Program              (0.4  %)    (0.3  %)   
  Selling, general and
  administrative expenses as a            34.8  %     35.1  %    (30    )
  percentage of Net sales,
  non-GAAP
                                                                   
                                                                   
  Other (Income) Expense, Net             2014       2013  
  Other (income) expense, net,           $ 411        $ 339
  GAAP
  2012 Restructuring Program               (131  )      (128  )
  Venezuela remeasurement charges          (266  )      (172  )
  Costs related to the sale of             -            (3    )
  land in Mexico
  Charge for a French competition         -          (18   )
  law matter
  Other (income) expense, net,           $ 14        $ 18    
  non-GAAP
                                                                   
                                                                   
  Operating Profit                       2014         2013         % Change
  Operating profit, GAAP                 $ 1,614      $ 1,648      (2     %)
  2012 Restructuring Program               176          168
  Venezuela remeasurement charges          266          172
  Costs related to the sale of             3            11
  land in Mexico
  Charge for a French competition         -          18        
  law matter
  Operating profit, non-GAAP             $ 2,059     $ 2,017     2      %
                                                                   
                                                                   Basis Point
  Operating Profit Margin                2014         2013         Change
  Operating profit margin, GAAP            18.6  %      19.0  %    (40    )
  2012 Restructuring Program               2.0   %      2.0   %
  Venezuela remeasurement charges          3.1   %      2.0   %
  Costs related to the sale of             -     %      0.1   %
  land in Mexico
  Charge for a French competition         -     %     0.2   %    
  law matter
  Operating profit margin,                23.7  %     23.3  %    40     
  non-GAAP
                                                                   
                                                                   
  Net Income Attributable to             2014         2013         % Change
  Colgate-Palmolive Company
  Net income attributable to             $ 1,010      $ 1,021      (1     %)
  Colgate-Palmolive Company, GAAP
  2012 Restructuring Program               126          131
  Venezuela remeasurement charges          174          111
  Costs related to the sale of             2            7
  land in Mexico
  Charge for a French competition         -          18        
  law matter
  Net income attributable to
  Colgate-Palmolive Company,             $ 1,312     $ 1,288     2      %
  non-GAAP
                                                                   
                                                                   
  Diluted Earnings Per Common            2014         2013         % Change
  Share ^(1) (2)
  Diluted earnings per common            $ 1.09       $ 1.08       1      %
  share, GAAP
  2012 Restructuring Program               0.13         0.14
  Venezuela remeasurement charges          0.19         0.12
  Charge for a French competition         -          0.02      
  law matter
  Diluted earnings per common            $ 1.41      $ 1.36      4      %
  share, non-GAAP
                                                                          

  ^(1) The impact of non-GAAP adjustments on diluted earnings per share may
 not necessarily equal the difference between "GAAP" and "non-GAAP" as a
  result of rounding.
  
  ^(2) Basic and diluted earnings per share are computed independently for
  each quarter and any year-to-date period presented. As a result of 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 any
  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.