Colgate-Palmolive Company (CL) Annual Evercore ISI Consumer and Retail Conference (Transcript)

Company and Industry Overview * Company: Colgate-Palmolive Company (NYSE:CL) * Industry: Consumer Goods, Personal Care, Oral Care, Pet Nutrition Key Points and Arguments 1. Positive Operating Environment: Colgate has seen a constructive operating environment globally, with pricing gains and volume growth in the first quarter of 2024. This includes pricing from developed markets, inflation in emerging markets, and Hill's brand. [3] 2. Strategic Focus: Colgate's strategy of investing in businesses for balanced top-line growth and consistent EPS growth is working well. This includes brand investments, advertising, and innovation. [4] 3. Latin America Performance: Latin America, along with Africa and Eurasia, has been a strong performer for Colgate, with volume growth and gross profit growth. The company has high market shares in key categories like toothpaste in Mexico and Brazil. [9] 4. elmex and meridol Success: Elmex and meridol, therapeutic brands in Europe, have seen significant market share gains. The company has been investing in these brands through innovation and advertising. [12] 5. Global Whitening Strategy: Colgate's global whitening strategy focuses on science and innovation, with high efficacy products and increased advertising. This has driven category growth and market share gains. [18] 6. Gross Margin Improvement: Colgate plans to continue improving gross margins through revenue growth management, innovation, and supply chain efficiencies. [25] 7. Hill's Pet Nutrition: Hill's is expected to be the fastest-growing category within Colgate's Pet Nutrition segment, with mid-single-digit growth. The company is investing in science, innovation, and advertising to drive growth. [29] 8. Personal Care and Home Care: Colgate's Personal Care and Home Care businesses have seen solid organic sales growth. The company is investing in advertising and innovation to drive growth and improve margins. [35] 9. Acquisitions: Colgate has acquired brands like Filorga, Elta, and PCA SKIN, focusing on science-driven brands with professional recommendations. These brands are performing well and are expected to contribute to future growth. [40] Additional Important Content * Currency Volatility: Colgate is closely monitoring currency volatility in Latin America, particularly in Mexico. [10] * Supply Chain Complexity: Colgate is working through supply chain complexity and expects further efficiencies. [26] * Private Label Impact: The impact of private label from the Red Collar acquisition on Hill's is expected to abate over time. [27] * Social Media Strategy: Colgate is leveraging social media to promote its science-driven brands and professional recommendations. [44]