Colgate-Palmolive Company (NYSE:CL) Sector: CPG Countries of operation: Operates in 75 countries and sells products to over 200 countries and territories in Africa/Eurasia, Asia Pacific, Europe, Latin America and North America   Key product categories:   Home Care, Oral hygiene, Personal Care and Pet Nutrition Annual Metrics [caption id="attachment_148445" align="aligncenter" width="698"] Fiscal year ends on December 31[/caption]   Summary Founded in 1886 and headquartered in New York City, Colgate-Palmolive Company is a CPG company that is divided into two main segments: Hill’s Pet Nutrition, and oral, personal and home care. The latter is further divided into five regions: Africa/Eurasia, Asia Pacific, Europe, Latin America, and North America. The company operates in 75 countries, and sells products in 200 countries and territories. The company owns several global and regional brands, including Ajax, Axion, Colgate, Elmex, EltaMD, Fabuloso, Filorga, Hello, Hill’s Science Diet and Hill’s Prescription Diet, Irish Spring, Lady Speed Stick, Meridol, Murphy, Palmolive, PCA Skin, Protex, Sanex, Softsoap, Sorriso, Soupline, Speed Stick, Suavitel and Tom’s of Maine. Company Analysis Coresight Research insight: Colgate performed relatively weakly in its fourth quarter of 2021, due to strong  comparatives against pandemic-fueled 2020 sales as well as supply chain disruptions. To fend off inflation and high supply chain costs, the company follows a competitive pricing strategy—with most products priced at a similar range or slightly higher compared to competitors, while specialty products are priced at a premium. Colgate also plans to prioritize its fast-growing digital channels through the 2022 Global Productivity Program, a cost saving plan that will further help protect margins. Following the company’s successful online marketing campaigns, especially on social media platforms, the company plans to increase its digital advertising spending in 2022 to bolster its e-commerce segment.

Tailwinds	Headwinds
Digital transformation is yielding strong e-commerce growth across all categories Demand for Colgate’s products are high Organic sales growth was led by pet nutrition in the US and Europe Colgate remains the leader in toothpaste and manual toothbrushes	Personal care and home care segments face difficult comparisons driven by pandemic-related demand Raw material inflation, supply chain disruptions, factory closures, and volatile consumer demand Organic sales declines in North America were driven by personal care and home care

Strategy Colgate Palmolive has outlined the following key focus areas to meet customers’ expectations and to futureproof the group: 1. Innovate product segments

• Focus on developing its oral care category through premium product innovation, which allows the company to offer both competitively priced products and products at a premium price—creating another growth vertical; top premium products include CO. by Colgate, Colgate Elixir toothpaste, and Colgate enzyme whitening toothpaste
• Expand its premium skincare products by acquiring skincare business Filorga

2. Follow its 2022 Global Productivity Program

• Reallocate resources to strategic priorities and faster growth business channels
• Streamline the company’s supply chain and reduce structural costs
• Execute the majority of the plan in 2022; the program has an estimated cost of $200–240 million and an estimated annualized savings of $90–110 million

3. Invest in digital and advertising

• Increase its level of brand support by increasing advertising spending to drive brand equity
• Accelerate e-commerce efforts and online marketing, especially on social media sites (Facebook and Instagram)

Revenue Breakdown (Q4FY21)   Company Developments

Date	Development
Feb 18, 2022	Colgate Palmolive announces new “Inspire our Future” scholarship for African-American college sophomores and juniors pursuing degrees in manufacturing, engineering, supply chain, sales or marketing.
Feb 11, 2022	Colgate Palmolive presents on its leadership and innovation in promoting sustainability and community wellbeing.
Feb 8, 2022	Colgate Palmolive introduces “Global Know Your OQ” campaign, which aims to help consumers understand and improve their “oral health quotient” as part of their overall wellbeing, as part of $100 million five-year oral health commitment.
Jan 24, 2022	Colgate Palmolive partners with leading digital dentistry 3D scanner software and service provider 3Shape to deliver innovative, personalized tooth whitening experience with 3Shape Unite Platform.
Jan 10, 2022	Three startups (Dermala, The SkinDNA Company, Gennev) win First-Ever Colgate Connect Challenge, which is focused on developing world-changing products to promote healthy futures.
Nov 22, 2021	Colgate Palmolive is recognized by Dow Jones sustainability indices for fifth consecutive year. Colgate achieved the highest score out of the 20 companies assessed in the Household Products Industry in the S&P Global Corporate Sustainability Assessment, as of S&P’s November 12, 2021 evaluation.
Nov 03, 2021	Colgate-Palmolive successfully priced a EUR 500 million 8-year Sustainability Bond with an interest coupon of 0.300% per annum. The net proceeds of Colgate’s first Sustainability Bond will be used to further the company’s 2025 Sustainability and Social Impact Strategy.
Oct 26, 2021	Colgate research reveals that childhood cavities are the most common disease among children, and lead to significant physical, emotional, social and economic distress.
Sept 8, 2021	Colgate plans to develop whitening toothpaste without peroxide, as the chemical is banned in several markets.
Aug 06, 2021	Colgate-Palmolive to leverage Verily’s baseline platform for innovative study in oral health research to better understand the connections between oral health and overall human health.
Jul 22, 2021	Colgate recommends shareholders reject “Mini-Tender” Offer By TRC Capital Investment Corporation, as the TRC’s offer to purchase 1.5 million shares is 4.46% less than the $84.39 closing price per share of Colgate’s common stock on July 16, 2021, the last trading day before the mini-tender offer commenced.
Jun 03, 2021	Colgate-Palmolive’s Sustainability & Social Impact Report shows that 99% of its new products launched in 2020 had improved sustainability profiles and that Colgate met or exceeded its energy, greenhouse gas emission, water and waste reduction goals and reached more than 100 million consumers with water, sanitation, and oral health education.

Management Team

• Noel R. Wallace—Chairman, CEO and President
• Stanley J. Sutula III—Chief Financial Officer
• Patricia D. Verduin—Chief Technology Officer
• Mike Crowe—Chief Information Officer
• John Faucher—Head of Investor Relations

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Source: Company reports/S&P Capital IQ