Colgate-Palmolive: Two Centuries of Excellence in Global Consumer Goods

Colgate-Palmolive Company (ColgatePalm) is a global company whose highly renowned brands can be found in the homes of hundreds of millions of consumers around the world, with Colgate-Palmolive stock being a key player in the market.

Founded almost 200 years ago in 1806 by William Colgate, the company began as a starch, soap and candle business in New York City. In 1857 upon the death of William Colgate, management of the company was ceded to his son Samuel.

In 1864, B.J. Johnson establishes a soap factory in Wisconsin, which eventually goes on to become the Palmolive Company. In 1866, Colgate introduces perfumed soap, perfume and essence into its product range.

Eight years later Cashmere Bouquet, the first milled perfumed toilet soap, is registered as a Colgate trademark brand. In 1873, Colgate begins retailing aromatic, jarred toothpaste, followed by toothpaste in a collapsible tube in 1896. Palmolive soap was first introduced in 1898 by B.I. Johnson Soap Company.

In 1906, Colgate & Company celebrated its 100-year anniversary, by which time its product line comprised of 800+ different items. In 1908, Colgate is incorporated by Samuel’s 5 sons.

By 1914, Colgate established its first international subsidiary in Canada, and by 1920 it had operations in Europe, Asia, Latin America, and Africa. Palmolive and Peet merge in 1926 to become Palmolive-Peet Company, which in turn merged with Colgate in 1928 to become the Colgate-Palmolive-Peet Company.

On 13 March 1930, Colgate listed on the New York Stock Exchange. In 1953, Colgate-Palmolive Company becomes the enterprises official name and in 1956 it opened its corporate headquarters in Park Avenue in New York City.

In 1983, the Colgate Plus Toothbrush was launched. Today, 1.6 billion+ Colgate toothbrushes are sold annually, which, interestingly, if lined up, would circle the earth 16 times. In 1989, Colgate-Palmolive sales exceeded $5 billion.

From 1990 to date, the company has continued to innovate, selling its growing product range in more than 200 countries and territories across the globe. Its focus remains on Oral Care, Personal Care, Home Care, and Pet Nutrition.

Market capitalisation and stock listings

Colgate-Palmolive is listed and trades on the New York Stock Exchange under the ticker symbol #CL. The company’s market capitalisation as of 27 September is valued at US$84.7 billion, with revenue of US$19.99 billion, and a net income of US$2.84 billion.

Top institutional shareholders

As of 30 June 2024, the top institutional holders of the company include Vanguard Group Inc., which holds 80.32 million shares, representing 9.83% of the company with a total value of US$8.33 billion. Blackrock Inc. follows with 61.62 million shares or 7.54%, valued at US$6.3 billion.

State Street Corporation holds 46.65 million shares, accounting for 5.71%, worth US$4.8 billion. Price (T. Rowe) Associates Inc. owns 38.25 million shares, equating to 4.68% with a value of US$3.9 billion, while Geode Capital Management, LLC holds 19.64 million shares, or 2.40%, valued at US$2.04 billion.

Other notable holders include Morgan Stanley with 17.94 million shares (2.20%), Wellington Management Group, LLP with 16.58 million shares (2.03%), and Norges Bank Investment Management with 9.85 million shares (1.21%). Amundi and First Eagle Investment Management, LLC round out the top ten, holding 9.37 million (1.15%) and 9.03 million (1.10%) shares, respectively, with values of US$971.3 million and US$935.6 million.

Top Mutual Fund holders

As of mid-2024, the top mutual fund holders include the Vanguard Total Stock Market Index Fund, which holds 25.85 million shares, representing 3.16% of the company and valued at US$2.6 billion. The Vanguard 500 Index Fund follows with 21.06 million shares (2.58%), worth US2.18 billion.

Vanguard Specialised-Dividend Growth Fund holds 16.59 million shares, or 2.03%, valued at US$1.72 billion as of 30 April 2024.

As of 31 July 2024, Fidelity 500 Index Fund owns 10.03 million shares (1.23%), worth US$1.04 billion. As of 31 August 2024, SPDR S&P 500 ETF Trust holds 9.76 million shares (1.19%), valued at US$1.01 billion, while iShares Core S&P 500 ETF holds 9 million shares (1.10%), with a value of $932.67 million.

First Eagle Global Fund and Select Sector SPDR Fund-Consumer Staples hold 5.9 million shares (0.72%) and 5.68 million shares (0.70%), valued at $611.19 million and $588.68 million, respectively.

Rounding out the list are the Vanguard Institutional Index Fund with 5.33 million shares (0.65%) and the Vanguard Specialised-Dividend Appreciation Index Fund with 4.44 million shares (0.54%), worth $552.73 million and $460.57 million, respectively.

Colgate announces 2^nd quarter 2024 results

In the second quarter of 2024, Colgate-Palmolive’s total company results showed a 4.9% increase in net sales, rising from $4.82 billion in 2023 to $5.06 billion.

Diluted earnings per Colgate-Palmolive Stock (EPS) also saw significant growth, increasing by 48% from $0.60 in 2023 to $0.89 in 2024.

Gross profit margin saw significant growth, rising 280 basis points to 60.6% on a GAAP basis, and 300 basis points to 60.8% for base business.

Colgate-Palmolive’s leadership in the global market was reinforced with a 41.5% share in toothpaste and 32.2% in manual toothbrushes.

For the first six months of 2024, net cash from operations reached $1.67 billion, and the company updated its full-year financial outlook.

Colgate-Palmolive’s Strong Growth Trajectory: What to Expect in 2025

As we look ahead to 2025, Colgate-Palmolive’s stock is expected to continue its positive performance driven by the company’s strong financial results and market leadership.

With a focus on innovation, sustainability, and expanding in emerging markets, Colgate-Palmolive is well-positioned for long-term growth.

Analysts predict that Colgate-Palmolive stock could see further appreciation, supported by its resilient product portfolio in oral care, personal care, home care, and pet nutrition, along with its solid cash flow and profitability outlook. Investors may continue to benefit from Colgate-Palmolive’s commitment to delivering value in the coming year.

Why trade Colgate-Palmolive stock with IronFX?

IronFX is a global broker providing an innovative trading experience to its world-wide traders.

The award-winning broker offers an extensive range of CFDs across varied asset classes, from forex and stocks, commodities and metals, as well as indices and futures.

IronFX traders can enjoy competitive spreads, fast trade executions, flexible leverage, and quick and easy withdrawals and deposits.

The CFD broker also offers different trading accounts to suit the needs of individual traders, regardless of expertise.

IronFX provides its traders with high-quality trading related education comprised of top tier resources to boost their skills and expertise and widen their scope of knowledge.  

This includes podcasts, trading videos, webinars, e-books, courses, and blogs. The broker also offers critical insights into trading psychology and ways of developing mental resilience, an impactful component of trading that influences financial outcomes significantly.

IronFX also offers a VIP Trading Room, which offers exclusive trading insights and personalised support with award-winning analysts. Also consider signing up for an IronFX demo trading account to practise trading, improve your technical analysis, and become a more skilled trader.

Disclaimer: This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.