New York, NY
www.colgatepalmolive.com

Sales: $13.1 billion for personal, home and oral care sales. Corporate sales: $15.1 billion.

Both corporate and sales of household, personal care and oral care products rose 1.5%. By region, Latin America accounted for 25% of sales, followed by North America (20%), Asia-Pacific (18%), Europe (16%) and Africa/Eurasia (6%).  Interestingly, 2017 sales were evenly split between developed and emerging markets.

Of course, oral care represents the most important part of Colgate’s business and the company proudly noted that it widened its lead in the global toothpaste market with a 43.3% share. Yet, there is still plenty of room for growth; nearly 70% of the population in markets where Colgate competes brush their teeth less than once a day. The company estimates that toothpaste category volume would grow 38% if these markets reported brushing frequency increase to an average of once a day.

Oral care accounted for 48% of sales last year, followed by personal care (19%), home care (18%) and pet nutrition (15%).

An increase in 2017 oral care sales was partially offset by declines in personal and home care sales. The decrease in personal care sales was due to declining AP/deo sales, liquid hand soap and shampoo categories, which were partially offset by gains the shower gel and bar soap categories. The decline in home care sales was due to declines in organic sales in the hand dish category, partially offset by organic sales growth in the liquid cleaners and fabric conditioner categories, according to Colgate.

Like many other FMCG companies, Colgate is focused on strengthening consumer engagement and is shifting more spending into digital, which accounted for 25% of Colgate’s global media spend—and more than 80% of Hill’s Pet Nutrition media spend.

The company is off to a mixed start in 2018 as Q1 sales rose 6.5% to more than $4 billion and unit volume increased 2%, but organic sales increased just 1.5%. According to Ian Cook, chairman president and chief executive officer, category growth remained soft in many markets around the world. Still, some markets proved to be harder than others. For example, North America net sales and unit volume each increased 9%. In the US, Colgate maintained its leadership in the toothpaste category during the quarter with its market share at 35.2% year to date. In manual toothbrushes, Colgate widened its brand market leadership in the US with its market share in that category at 42.6% year to date, supported by the success of Colgate Total 360° Advanced Optic White and Colgate Gum Health manual toothbrushes.

In Latin America, Q1 sales rose less than 1% and unit volume was flat, as volume gains in Brazil were offset by volume declines in Mexico. Colgate maintained its toothpaste leadership in Latin America during the quarter, with market share gains in Brazil, Peru, Chile, Puerto Rico, Guatemala and El Salvador.

European net sales surged 16% in Q1, aided in large part by forex. Organic sales in the region were up 1.5%, led by volume gains in France and Italy.

Sales in Asia Pacific increased 5.5%, but much of the increase was attributed to favorable exchange rates. Colgate maintained its toothpaste leadership in the region with market share gains in the Philippines.

Africa/Eurasia sales increased 3.5%, driven by forex. Colgate maintained its toothpaste leadership in Africa/Eurasia during the quarter, with market share gains in Saudi Arabia, Kenya, Kuwait, Qatar and Oman. Successful products contributing to sales in the region included Colgate Ancient Secrets, Colgate Safe Whitening, Colgate Natural Extracts and Colgate Optic White Extra Power toothpastes, Colgate Zig Zag Charcoal and Colgate Triple Action manual toothbrushes, Palmolive Luminous Oils shower gel and Protex Herbal bar soap, according to the company.

New York, NY
www.colgatepalmolive.com

Sales: $12.9 billion for household, oral and personal care products.

Corporate sales: $15.1 billion.

Corporate sales fell 5% last year and unit volume was off 3%. Net sales increased 4%, driven by an increase in toothpaste and manual toothbrush sales, as well as shower gel and fabric softener sales. When Hill’s Pet Nutrition is taken out of the equation, sales fell 6.5% last year.

Chairman Ian Cook blamed the decline in corporate sales on challenging macroeconomic conditions and foreign currency headwinds. And yet, Colgate’s leadership in the global toothpaste market reached 44% by the end of 2016. Colgate held the top spot, too, in the manual toothbrush segment with a global share of 33.1%. Oral care represented 47% of sales, followed by personal care (20%) and home care (18%). Hill’s Pet Nutrition accounted for the remaining 15%.

By region, Latin America accounted for 24% of sales, followed by North America (21%), Asia-Pacific (18%), Europe (16%), Africa/Eurasia (6%) and Hill’s Pet Nutrition (15%).
Sales in Latin America slumped more than 15% due to volume declines and negative foreign exchange rates. North American sales increased 1.0%, driven by volume growth of 2.5%, which was partially offset by net selling price decreases of 1.0% and negative foreign exchange of 0.5%. Oral care and personal care both contributed to the gain. Sales in Europe fell 3%, which the company blamed on forex and weak pricing. Gains in oral care sales were more than offset by declines in personal care and home care. Finally, net sales in Asia-Pacific fell 5% due to a volume decline and negative exchange rate.

For the first quarter of 2017, sales were flat at $3.7 billion, but global unit volume fell 2%. Organic sales grew less than 1%.

“Clearly the first quarter was challenging and did not meet our organic sales growth expectations, driven mainly by softer results in North America,” noted Cook. “Net sales were even with the year ago quarter, while organic sales grew 0.5%, led by emerging markets where organic sales grew 3.0%.”

According to Cook, Colgate’s leadership of the global toothpaste market rose to 43.8% and the company’s global share of manual toothbrush sales was 32.7%.

Last month, at a Bernstein Strategic Decisions Conference, Cook noted that 2017 challenges include slowing category growth worldwide, retailer destocking, and political and social unrest. To help overcome some of these barriers, Colgate aims to grow sales by making oral care a two-times a day habit in growing populations such as India and Africa. According to Cook, India’s annual per capita usage of toothpaste is just 171g, compared to 518g in the US and 679g in Brazil. In fact, 95% of the company’s growth through 2030 is expected to come emerging markets.

Colgate will also invest in consistent advertising every quarter and put money behind key brands to drive growth. At the same time, Colgate will increase digital and equity advertising, such as two-minute video clips aimed at kids to show that brushing is fun.

Cook said Colgate is transforming insights and R&D into innovations to drive growth. One example is the recent launch of Colgate Total Clean-In-Between toothpaste. According to the company, Clean-In-Between toothpaste’s advanced micro-foaming formula reaches even deep in between teeth to reduce 83% more plaque germs than non-antibacterial fluoride toothpaste 12 hours after brushing for healthier gums. Colgate Total Clean-In-Between toothpaste provides 12-hour antibacterial protection for 100% of the mouth’s surfaces: teeth, tongue, cheeks and gums. Other examples of innovation include Colgate Optic White High Impact White toothpaste, which promises to get teeth four shades brighter, and Sanex Advanced Reviva Firm for mature skin.

At retail, Colgate’s new Customer Engagement Centers are collaborations with retailers to drive growth. The goal is to leverage brand with category and shopper expertise, according to Cook. At the same time, Colgate is determined to reach dentists and other professionals in new ways such as #Colgate Talks for dentists. Cook noted that French dermatologists recommend Sanex body lotion more than any other brand.

Of course, Colgate has been hyping gross margin gains for years. In 2017, it reached 60.7%, up 40 basis points. One way to boost margin is through productivity and Colgate has a state-of-the-art soap facility in Mexico, where productivity rose 39%. Other ways Colgate is driving down costs is simplifying formulas in Latin America and using advanced analytics to optimize shipping.

New york, NY
212.310.2000
www.colgatepalmolive.com

Sales: $15.0 billion for oral care, personal care and household products. Corporate sales: $17.2 billion.

Irish Spring Signature for Men, Sanex Advanced, Suavitel Complete, Colgate Optic White Platinum Express White, Colgate Optic White Toothbrush + Whitening Pen, Colgate Enamel Health Toothbrush + Sensitivity Relief Pen. Laser toothpaste (acquisition, Myanmar); Tom’s of Maine Wicked Cool toothpaste, Tom’s of Maine Baby Care, Body Care and Lip Care.

Few companies on earth can squeeze so much out of a single category, but a combination of being the global market leader in oral care and fixation on margin has Colgate brass smiling these days. The company’s share of the global toothpaste market continues to expand, reaching 44.8% through the first quarter of 2015. In contrast, CP’s closest competitor has just a 14.3% share. Impressive, sure, but consider these country toothpaste shares for Colgate: Brazil, 71.8%; Russia, 31.8%; India, 54.7% and China, 33.7%. Ironically, there’s room for growth in the US, as P&G’s Crest still holds the top spot with 37.3% share, compared to Colgate’s 35.3% share.

It’s the same story of dominance in the toothbrush segment, as Colgate’s global share has climbed to 33.8% during the past 20 years, while its chief competitor has seen its share drop from 26.2% to 19.7%. It’s a different tale, however, in mouthwash, where Colgate is a distant No. 2 with a 16.5% share, compared to P&G’s 40.4% share.

Yet, despite its dominance in the global oral care segment, Colgate posted a 1% decline in corporate sales last year. Net income fell 3%. Gross margin was 58.5%. Company CEO Ian Cook blamed the decline on exchange rates and divestitures, noting that organic sales rose 5% on a 3% increase in unit volume and positive pricing of 2%.

Oral care accounted for 46% of sales last year, followed by personal care (21%), home care (20%) and pet nutrition (13%). It may be based in New York, but Colgate is truly multinational; in fact, it’s biggest markets lie outside North America. By region, Latin America accounted for 28% of sales, followed by Europe-South Pacific (20%), North America (18%), Africa/Eurasia (7%).
In Latin America, sales fell 5%, but organic sales increased 9%. Consumers snapped up an array of Colgate products, including Colgate Luminous White Advanced, Colgate Total Breath Health and Colgate Maximum Cavity Protection Plus Neutrazucar toothpastes. Also Suavitel Complete fabric conditioner and Axion Goodbye Odors dish liquid contributed to volume growth throughout the region.

Within the Europe/South Pacific business sales increased .5% on organic sales growth of 1.5%. Brands that helped grow the business include Colgate Max White One Optic and Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer toothpastes. On the home care side, Ajax All Usage Gel liquid cleaner and Soupline Paradise Sensations fabric conditioner contributed to volume growth.

Sales in North America increased 1.5%, driven by a 2.5% increase in organic sales. Regional results received a boost from sales of Colgate Optic White and Colgate Total Lasting White mouthwashes, as well as Fabuloso Fiesta Orange liquid cleaner and Suavitel Fast Dry fabric conditioner.

Exchange rates took their toll in Africa/Eurasia, were sales fell 4%, despite organic growth of 7%. Colgate Optic White Instant, Colgate Altai Herbs, Colgate Slim Soft Charcoal manual toothbrush and Protex for Men shower gel contributed to volume growth.

In a review of the sustainability of its products, the company proudly notes that 70% of products were determined to be “more sustainable,” having an improvement in at least one of the following areas: responsible sourcing and raw materials, energy and greenhouse gases, water, waste, ingredient profile, packaging and social metrics.

What’s more, Colgate’s Bright Smiles, Bright Futures program has reached 800 million children around the world through 2014, with the goal of reaching 1.3 billion kids by 2020.

For the first quarter of 2015, worldwide net sales fell 6% to $4.0 billion, on unit volume gains of 1.5%, pricing increases of 2.5% and -10% foreign exchange. Global unit volume grew 1.5%, pricing increased 2.5% and foreign exchange was negative 10.0%. Organic sales (net sales excluding foreign exchange, acquisitions and divestments) grew 4.0%.

“In the face of challenging macroeconomic conditions worldwide, we are pleased to have started the year with solid organic sales growth and higher profitability as a percent to sales, despite significant foreign currency headwinds,” said Cook.  “Where organic sales grew a strong 6.5%, despite economic challenges in certain countries.”

By region, North America net sales increased 0.5%. Latin American sales fell 5.5%, even as unit volume increased 1.5% and pricing rose 8.0%. Europe/South Pacific net sales decreased 14.5%, due to lower price and a weak exchange rate. Sales in Asia declined 1.5% and sales in Africa/Eurasia fell 15.0%, due to foreign exchange’s negative 23.0% impact.

New York, NY
212.310.2000
www.colgate.com

Sales: $15.2 billion for oral care, personal care and household care products. Corporate sales: $17.4 billion. Net income: $2.2 billion.

At press time, speculators were having a field day with the notion that Colgate would put in a bid for Clorox. Where that speculation came from is anyone’s guess, but it seems unlikely, as for years Colgate has focused its R&D efforts on higher-margin oral care products, while settling for “me-too” personal care and household brands. Still, the jump in Clorox call volume is reminiscent of the increased trading before Berkshire Hathaway Inc. and 3G Capital agreed to buy HJ Heinz Co. last year, according to Christopher Rich, head options strategist at JonesTrading Institutional Services LLC.

The rumors swirled as 2013 corporate sales and sales in Happi’s fields both rose 2% last year. Oral, personal and home care volume increased 5.5% and net selling price increases of 0.5% were partially offset by negative foreign exchange of 4.0%. Organic sales in the oral, personal and home care segment increased 6.0%.

The increase in organic sales was driven by an increase in oral care sales, with the toothpaste, manual toothbrush and mouthwash categories all contributing to growth. Personal care and home care also contributed to organic sales growth due to strong bar soap and hand dish product sales.

Colgate’s share of the global toothpaste market at the end of 2013 was 44.8% and its share of the global manual toothbrush market was 32.9%. Toothpaste market share rose in Europe/South Pacific, Asia and Africa/Eurasia, but fell in North America and Latin America. Manual toothbrush shares were up in North America, Latin America and Europe/South Pacific, and down in Asia and Africa/Eurasia.

By region, net sales in North America increased 3.5% to $3.0 billion, driven by volume growth of 3.5%. The increase was driven by gains in oral care sales with the toothpaste, manual toothbrush and mouthwash categories all contributing to growth. Home care also contributed on strong sales in the hand dish and fabric softener categories.

Net sales in Latin America fell 0.5% to $5.0 billion. Volume gains were led by Brazil, Venezuela, Mexico and Central America. The increase in Latin American organic sales was due to an increase in oral care sales.

Net sales in Europe/South Pacific fell 0.5% in 2013 to nearly $3.4 billion, as volume growth and positive foreign exchange were more than offset by net selling price decreases of 2.5%.

Net sales in Asia increased 9.0% to more than $2.4 billion, driven by volume growth of more than 10%. Volume gains were led by the Greater China region, India, Thailand and the Philippines. Sales were driven by an increase in oral care sales with the toothpaste and manual toothbrush categories contributing to growth. Personal care sales also contributed to organic sales growth with gains in the shampoo category.

Net sales in Africa/Eurasia increased 1.5% to more than $1.2 billion, driven by volume growth of 8.0%. Volume gains were led by Turkey, Russia, the Sub Saharan Africa region and the Central Asia/Caucasus region. The increase in organic sales was driven by an increase in oral care and personal care sales.

For the first quarter of 2014, worldwide net sales rose 6.5% to $4.3 billion. During that time, Colgate’s leading global market shares in toothpaste and manual toothbrushes remain strong at 44.3% and 33.1%, respectively. Colgate’s global market share in the mouthwash category reached a record high at 17.3%.

“We are very pleased to have started the year with strong organic sales growth, building on the momentum we saw in 2013,” said Ian Cook, president and CEO.  “We continue to plan for higher levels of advertising investment in the balance of the year in support of a very full pipeline of new products worldwide.”

New York, NY
212.310.2000
www.colgate.com

Sales: $14.9 billion for oral care, personal care and household care products. Corporate sales: $17.1 billion. Net income: $2.4 billion.

Unlike Procter & Gamble, the No. 2 company in The Happi Top 50, is quite comfortable playing in emerging markets. Colgate competes in more than 200 countries around the globe and generates 80% of sales outside the US and 50% of sales come from emerging markets. Total sales rose 2% last year to nearly $17.1 billion on 3% gains in volume and price that were partially offset by a 4% negative foreign exchange. Excluding the impact of the divestment of the non-core laundry detergent business in Colombia, volume increased 3.5%. The Sanex business contributed 0.5% to worldwide net sales and volume growth in 2012.

Total sales in the oral, personal care and home care segment rose 2.5% last year, as volume growth of 4.0% and net selling price increases of 3.0% were partially offset by negative foreign exchange of 4.5%. Excluding the impact of the divestment of the non-core laundry detergent business in Colombia, volume increased 4.5%. The Sanex business contributed 1.0% to sales and volume growth in 2012. Organic sales in the Oral, Personal and Home Care segment increased 6.5% on organic volume growth of 3.5% in 2012. By region, sales in North America rose 3.5% to nearly $3.1 billion, Latin American sales increased 2.5% to $4.9 billion, sales in Europe/South Pacific fell 2.5% to $3.4 billion and Greater Asia/Africa sales rose 7% to $3.5 billion, according to the company.

Sales were up last year, but that didn’t stop Colgate from launching a global growth and efficiency program to help ensure continued global gains in unit volume, organic sales and earnings per share, and enhance its global leadership positions. The primary objectives of the program include:

• Becoming even stronger on the ground through the continued evolution and expansion of proven global and regional commercial capabilities, which have already been successfully implemented in a number of the company’s operations around the world.
• Simplifying and standardizing how work gets done by increasing technology-enabled collaboration and taking advantage of global data and analytic capabilities, leading to smarter and faster decisions.
• Reducing structural costs to continue to increase the company’s gross and operating profit.
• Building on Colgate’s current position of strength to enhance its leading market share positions worldwide and ensure sustained sales and earnings growth.

Which all just another way of saying Colgate brass is determined to do more with less—something company executives have strived for during the past two decades by boosting profit margins year after year and embracing technology such as SAP.

In product development news, earlier this year, the US Patent Office published a Colgate application for toothbrushes that release chemicals into the mouth. Applications include topical pain relief, such as capsaicin and benzocaine, to provide help with teething or abrasions; menthol or other chemicals that provide cooling sensations; flavors, including apple, mint, lemon or other fruits; caffeine and appetite suppressants. In the patent application, Colgate-Palmolive says the brushes would ideally be able to provide the benefit for three months and have an indicator showing when the chemical was gone.

For the first quarter of 2013, corporate sales rose less than 3% to $4.3 billion. Sales of oral, personal and home care products rose 3.5% to nearly $3.8 billion. In March, the company announced a 2-for-1 stock split.  In May, Colgate said it will move its European headquarters from Geneva to Basel, Switzerland, in order to merge its regional headquarters with those of its subsidiary, Gaba International.