Colgate-Palmolive Company is a global consumer products company that operates in the Oral, Personal and Home Care, and Pet Nutrition segments. The company sells a wide range of products, including oral care items like toothpaste and toothbrushes, personal care products such as shampoos and deodorants, and home care goods like dishwashing detergents and household cleaners **[0000021665-24-000003_cl-20231231.htm:106]**. Additionally, Colgate-Palmolive offers specialty pet nutrition products for dogs and cats under the Hill's Science Diet and Hill's Prescription Diet brands **[0000021665-24-000003_cl-20231231.htm:3]**. These products are marketed in over 200 countries and territories, with a significant portion of sales coming from outside the U.S., including emerging markets **[0000021665-24-000003_cl-20231231.htm:42]**.

1. **Oral, Personal and Home Care** - Offers a variety of products including toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants, antiperspirants, skin health products, dishwashing detergents, fabric conditioners, and household cleaners. These products are sold to traditional and eCommerce retailers, wholesalers, distributors, dentists, and skin health professionals **[0000021665-24-000003_cl-20231231.htm:106]**.
   - **Oral Care** - Includes products like toothpaste, toothbrushes, and mouthwash.
   - **Personal Care** - Comprises items such as shampoos, conditioners, deodorants, and skin health products.
   - **Home Care** - Encompasses products like dishwashing detergents, fabric conditioners, and household cleaners.

2. **Pet Nutrition** - Provides specialty pet nutrition products for dogs and cats, marketed under brands like Hill's Science Diet and Hill's Prescription Diet. These products are sold through authorized pet supply retailers, veterinarians, and eCommerce retailers **[0000021665-24-000003_cl-20231231.htm:3]** **[0000021665-24-000003_cl-20231231.htm:106]**.

0a87170507399ca22d4ce62fe73bbd1b8f6b6ee8402163c2bc4e87dc01dfb9ad

| Metric (USD Million) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Oral, Personal and Home Care | **$3,709**  **[0000021665-23-000016_cl-20230331.htm:26]**  | **$3,766**  **[0000021665-23-000031_cl-20230630.htm:29]**  | **$3,857**  **[0000021665-23-000037_cl-20230930.htm:31]**  | N/A | **$3,963**  **[0000021665-24-000015_cl-20240331.htm:15]**  | **$3,944**  **[0000021665-24-000031_cl-20240630.htm:32]**  | **$3,907**  **[0000021665-24-000044_cl-20240930.htm:34]**  | N/A |
| Pet Nutrition | **$1,061**  **[0000021665-23-000016_cl-20230331.htm:26]**  | **$1,056**  **[0000021665-23-000031_cl-20230630.htm:29]**  | **$1,058**  **[0000021665-23-000037_cl-20230930.htm:31]**  | N/A | **$1,102**  **[0000021665-24-000015_cl-20240331.htm:15]**  | **$1,114**  **[0000021665-24-000031_cl-20240630.htm:18]**  | **$1,126**  **[0000021665-24-000044_cl-20240930.htm:34]**  | N/A |
| Total Net Sales | **$4,770**  **[0000021665-23-000016_cl-20230331.htm:26]**  | **$4,822**  **[0000021665-23-000031_cl-20230630.htm:29]**  | **$4,915**  **[0000021665-23-000037_cl-20230930.htm:31]**  | N/A | **$5,065**  **[0000021665-24-000015_cl-20240331.htm:15]**  | **$5,058**  **[0000021665-24-000031_cl-20240630.htm:32]**  | **$5,033**  **[0000021665-24-000044_cl-20240930.htm:34]**  | N/A |

402cdb02520c12bee345c7e7fdf27cb9081172f3ea0a128d7501c942a842dbc1

| Geographical Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America ($M)   | **966**  **[0001157523-23-000106_a53291858ex99.htm:8]**  | **958**  **[0000021665-23-000016_cl-20230331.htm:15]**  | **978**  **[0000021665-23-000031_cl-20230630.htm:18]**  | **990**  **[0000021665-23-000037_cl-20230930.htm:18]**  | **3,925**  **[0000021665-24-000003_cl-20231231.htm:139]**  | **997**  **[0000021665-24-000015_cl-20240331.htm:32]**  | **1,002**  **[0000021665-24-000031_cl-20240630.htm:18]**  | **1,004**  **[0000021665-24-000044_cl-20240930.htm:20]**  |
| Latin America ($M)   | **1,011**  **[0001157523-23-000106_a53291858ex99.htm:8]**  | **1,075**  **[0000021665-23-000016_cl-20230331.htm:15]**  | **1,178**  **[0000021665-23-000031_cl-20230630.htm:18]**  | **1,194**  **[0000021665-23-000037_cl-20230930.htm:18]**  | **4,640**  **[0000021665-24-000003_cl-20231231.htm:139]**  | **1,253**  **[0000021665-24-000015_cl-20240331.htm:32]**  | **1,267**  **[0000021665-24-000031_cl-20240630.htm:38]**  | **1,156**  **[0000021665-24-000044_cl-20240930.htm:20]**  |
| Europe ($M)          | **623**  **[0001157523-23-000106_a53291858ex99.htm:8]**  | **650**  **[0000021665-23-000016_cl-20230331.htm:15]**  | **678**  **[0000021665-23-000031_cl-20230630.htm:18]**  | **725**  **[0000021665-23-000037_cl-20230930.htm:18]**  | **2,737**  **[0000021665-24-000003_cl-20231231.htm:139]**  | **711**  **[0000021665-24-000015_cl-20240331.htm:15]**  | **720**  **[0000021665-24-000031_cl-20240630.htm:38]**  | **744**  **[0000021665-24-000044_cl-20240930.htm:20]**  |
| Asia Pacific ($M)    | **696**  **[0001157523-23-000106_a53291858ex99.htm:8]**  | **738**  **[0000021665-23-000016_cl-20230331.htm:15]**  | **664**  **[0000021665-23-000031_cl-20230630.htm:18]**  | **682**  **[0000021665-23-000037_cl-20230930.htm:18]**  | **2,782**  **[0000021665-24-000003_cl-20231231.htm:139]**  | **727**  **[0000021665-24-000015_cl-20240331.htm:15]**  | **682**  **[0000021665-24-000031_cl-20240630.htm:39]**  | **725**  **[0000021665-24-000044_cl-20240930.htm:20]**  |
| Africa/Eurasia ($M)  | **273**  **[0001157523-23-000106_a53291858ex99.htm:8]**  | **288**  **[0000021665-23-000016_cl-20230331.htm:15]**  | **268**  **[0000021665-23-000031_cl-20230630.htm:18]**  | **266**  **[0000021665-23-000037_cl-20230930.htm:18]**  | **1,083**  **[0000021665-24-000003_cl-20231231.htm:139]**  | **276**  **[0000021665-24-000015_cl-20240331.htm:34]**  | **273**  **[0000021665-24-000031_cl-20240630.htm:39]**  | **278**  **[0000021665-24-000044_cl-20240930.htm:20]**  |

8842dc4f4888abfa4baea605ecbf76bb75ee020b01cb87a99af6c9878ab63342

1. In North America, you mentioned shipment timing issues and e-commerce pullbacks impacting the quarter; can you elaborate on the specific disruptions that caused shipments to be pushed from Q3 to Q4, and how confident are you that these issues are resolved and won't recur?
2. Despite strong results in Europe this quarter, some of your peers suggest such performance may not be sustainable; given the challenges of pricing and historical softness in the European market, what strategies do you have in place to maintain momentum and address potential headwinds?
3. The Skin Health business faced softness due to online retailers pulling back orders and sluggishness in key markets; how are you adjusting your approach to address these challenges, and what steps are you taking to drive sustainable growth in this segment?
4. In U.S. Oral Care, market share has been roughly flat with some declines, and competitors seem to be gaining ground; can you provide more detail on what is contributing to this share loss, what competitors are doing differently, and how you plan to regain momentum in this critical market?
5. With increased advertising and reinvestment spending, is there a point where returns begin to diminish, and how do you assess the optimal level of investment to ensure you're not overspending without sufficient return on investment?

7933d1eeee614b7d89ed7d56e204875665854581e98675cd20f129345da630b8

North America

Latin America

Europe

Europe/South Pacific

Asia

Asia Pacific

Africa/Eurasia

Total Oral, Personal and Home Care

Hill's Pet Nutrition

Total Revenue

db8bed0c64c67fc00bfd35de25a962abaab51d2633a0f6e3c87b3e4ded4c0ee9

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

adfb07bc78103a9cb8fefe54e23a3f5fd50a6272dae753c66f60c1f9278e6ff1

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

47a67aabaee83d25464fce1899bafa3991086a81d3d15b6e6d30dca32660acbe

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**: 
  - Colgate did not provide specific quarterly guidance. The CEO expressed confidence in the company's position for consistent growth, despite challenges such as foreign exchange movements and broader category trends. No specific metrics were detailed  **[CL_3403986_12]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q2 2024
- **Guidance**:
  - Focus on driving consistent compounded earnings per share growth.
  - Leverage strong cash flow for investments, dividends, and share repurchases.
  - Maintain strong gross margins to support brand investment and capabilities while delivering bottom-line growth.
  - Expect second-half gross margin to be up year-on-year, similar to Q2 levels, despite raw material inflation and foreign exchange impacts  **[CL_3394672_1]** **[CL_3394672_2]** **[CL_3394672_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Base Business Earnings Per Share Growth**: Mid- to high single-digit growth, despite a mid-single-digit negative impact from foreign exchange  **[CL_3381122_1]** .
  - **Gross Margin**: Expect expansion for the year, despite headwinds from modest raw material inflation and foreign exchange impacts  **[CL_3381122_4]** .
  - **Organic Sales Growth**: Raised guidance, attributing about half of the 2-point increase to inflationary pricing as an offset to foreign exchange, with additional upside from real terms across the portfolio  **[CL_3381122_2]** .
  - **Capital Expenditure**: Expected to be lower as a percentage of sales compared to the previous year  **[CL_3381122_11]** .
  - **Cash Flow**: Anticipate strong performance, focusing on maintaining flexibility in capital allocation, including investments, dividends, share buybacks, and potential M&A opportunities  **[CL_3381122_11]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Organic Sales Growth**: Targeting a range of 3% to 5% for FY 2024  **[CL_3370976_1]** **[CL_3370976_12]** .
  - **Earnings Per Share (EPS) Growth**: Mid- to high single-digit growth  **[CL_3370976_12]** .
  - **Gross Margin Expansion**: Anticipated, driven by productivity initiatives and pricing strategies  **[CL_3370976_1]** **[CL_3370976_7]** .
  - **Cash Flow Growth**: Expected to be strong, used to invest back into the business and return cash to shareholders  **[CL_3370976_1]** .
  - **Pricing and Volume Balance**: Plan to achieve a more balanced growth between pricing and volume  **[CL_3370976_12]** **[CL_3370976_5]** .
  - **Advertising and Marketing Investment**: Continued investment to drive brand strength and market share  **[CL_3370976_1]** **[CL_3370976_4]** .

5a06a94147ad0e72deae3b00bdab681c56938c60fca7e417f85a49de9a8e4bc5

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Oral, Personal and Home Care

- Oral Care

- Personal Care

- Home Care

Pet Nutrition

9b557dcf86e539ad04616e5f1f1443b99c99bd5653e99380a15e817bfaeb5b0c

| Name                  | Position                                      | Start Date         | Short Bio                                                                                                                                                                                                 |
|-----------------------|-----------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Noel R. Wallace       | Chairman of the Board, President, and CEO     | 2019               | Noel R. Wallace has been with Colgate-Palmolive since **1987**. He became the **President and CEO** in **2019** and has served as the **Chairman of the Board** since **2020**  **[0001308179-24-000306_cl4274061-def14a.htm:39]** **[0001308179-23-000418_cl4117791_def14a.htm:40]** .                                                        |
| Stanley J. Sutula III | Chief Financial Officer                       | November 9, 2020   | Stanley J. Sutula III has been the **CFO** of Colgate-Palmolive since **November 9, 2020**. Previously, he was the Executive Vice President and CFO of Pitney Bowes Inc.  **[0000021665-24-000003_cl-20231231.htm:12]** **[0001308179-23-000418_cl4117791_def14a.htm:91]** .                                                               |
| Jennifer M. Daniels   | Chief Legal Officer and Secretary             | 2014               | Jennifer M. Daniels has been the **Chief Legal Officer and Secretary** since **2014**, overseeing legal affairs and corporate governance  **[0000021665-24-000003_cl-20231231.htm:12]** .                                                                                                   |
| John W. Kooyman       | Chief of Staff                                | 2019               | John W. Kooyman has been the **Chief of Staff** since **2019** and was first elected as an executive officer in the same year  **[0000021665-24-000003_cl-20231231.htm:12]** .                                                                                                              |
| Prabha Parameswaran   | Group President, Growth and Strategy          | 2019               | Prabha Parameswaran serves as the **Group President, Growth and Strategy** and was first elected as an executive officer in **2019**. As of February 15, 2024, she is **65 years old**  **[0000021665-24-000003_cl-20231231.htm:12]** .                                                    |
| Panagiotis Tsourapas  | Group President, Europe and Developing Markets| 2019               | Panagiotis Tsourapas has been the **Group President for Europe and Developing Markets** since **2019** and has held various executive roles at the company for the past five years  **[0000021665-24-000003_cl-20231231.htm:12]** .                                                        |
| Sally Massey          | Chief Human Resources Officer                 | 2020               | Sally Massey has been the **Chief Human Resources Officer** since **2020**  **[0000021665-24-000003_cl-20231231.htm:12]** .                                                                                                                                                                 |
| Gregory O. Malcolm    | Executive Vice President and Controller       | 2022               | Gregory O. Malcolm has been the **Executive Vice President and Controller** since **2022**  **[0000021665-24-000003_cl-20231231.htm:12]** .                                                                                                                                                 |
| Brian Newman          | Board Member                                  | March 15, 2024     | Brian Newman is an **Independent Director** at Colgate-Palmolive, joining the Board on **March 15, 2024**. He is also the **Executive Vice President and CFO** of UPS, a position he has held since 2019  **[0001308179-24-000306_cl4274061-def14a.htm:37]** **[0001308179-24-000306_cl4274061-def14a.htm:28]** **[0001308179-24-000306_cl4274061-def14a.htm:7]** .                             |

b304f72a05b8c9ec053cdcf6917d9d976478d0bf5d8df07c7da08dc2c423d868

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | **March 10, 2022**  **[0000021665-24-000044_cl-20240930.htm:66]**  |
| End Date/Duration        | Not specified  **[0000021665-24-000044_cl-20240930.htm:66]**   |
| Total additional amount  | **$5 billion**  **[0000021665-24-000044_cl-20240930.htm:66]**  |
| Remaining authorization amount | **$1,635 million** (as of September 30, 2024)  **[0000021665-24-000044_cl-20240930.htm:66]**  |
| Details                  | Repurchases are conducted at the company's discretion, subject to market conditions and other factors. The program replaced a previously authorized share repurchase program and is also used to fulfill certain requirements of the company's compensation and benefit programs.  **[0000021665-24-000044_cl-20240930.htm:66]** **[0000021665-24-000003_cl-20231231.htm:121]** **[0000021665-23-000037_cl-20230930.htm:66]** **[0000021665-24-000031_cl-20240630.htm:66]** **[0000021665-24-000015_cl-20240331.htm:53]** **[0000021665-23-000031_cl-20230630.htm:63]** **[0000021665-23-000016_cl-20230331.htm:55]** **[0000021665-22-000025_cl-20220630.htm:64]** **[0000021665-22-000027_cl-20220930.htm:66]** **[0000021665-23-000007_cl-20221231.htm:122]**  |

b7c54325b84185bc57ad89160e2cf13d411f5596ccbc9d85c23da3b641e02f8f

81e5d688dbc00f6fb92c0ddd0296ed303c007bb3a8024d6aada7edb3b018f2a2

**Quarterly guidance for Q4 2024:**
- **Organic sales growth**: In line with long-term targets  **[CL_3403986_12]** **[CL_3403986_1]** **[CL_3403986_6]** **[CL_3403986_3]** **[CL_3403986_5]** **[CL_3403986_13]**  (no prior guidance)  
- **Gross margin**: Continued year-over-year improvement  **[CL_3403986_12]** **[CL_3403986_1]** **[CL_3403986_6]** **[CL_3403986_3]** **[CL_3403986_5]** **[CL_3403986_13]**  (no change from prior guidance  **[CL_3394672_1]** **[CL_3394672_2]** **[CL_3394672_6]** )  
- **Advertising and Investment**: Committed to reinvesting in innovation and advertising  **[CL_3403986_12]** **[CL_3403986_1]** **[CL_3403986_6]** **[CL_3403986_3]** **[CL_3403986_5]** **[CL_3403986_13]**  (no prior guidance)  
- **Emerging Markets**: Continued growth opportunities with potential foreign exchange volatility  **[CL_3403986_12]** **[CL_3403986_1]** **[CL_3403986_6]** **[CL_3403986_3]** **[CL_3403986_5]** **[CL_3403986_13]**  (no prior guidance)  
- **Hill’s Pet Nutrition**: Ongoing international expansion and capacity investments  **[CL_3403986_12]** **[CL_3403986_1]** **[CL_3403986_6]** **[CL_3403986_3]** **[CL_3403986_5]** **[CL_3403986_13]**  (no prior guidance)  

24b18aa3b09cd2a9000eb503ce736fd5b0a5c328f26b3dde6ebb373e70a12f62

68204f2104c2ba6633881c5cbc94d2f4b51bab9e743aa9796d46f8dc375366a9

- Total Revenue: $4.945B (-0.1% YoY)  **[0000021665-24-000003_cl-20231231.htm:102]** **[0000021665-25-000005_a4q2024pressreleasetables.htm:11]**   
- Oral, Personal and Home Care: $3.804B (-1% YoY)  **[0000021665-24-000003_cl-20231231.htm:139]** **[0000021665-25-000005_a4q2024pressreleasetables.htm:11]**   
- Pet Nutrition: $1.141B (+2% YoY)  **[0000021665-24-000003_cl-20231231.htm:139]** **[0000021665-25-000005_a4q2024pressreleasetables.htm:11]**   
- North America Revenue: **$1.110B (+11% YoY)**  **[0000021665-24-000003_cl-20231231.htm:139]** **[0000021665-25-000005_a4q2024pressreleasetables.htm:11]**   
- Latin America Revenue: **$1.106B (-7% YoY)**  **[0000021665-24-000003_cl-20231231.htm:139]** **[0000021665-25-000005_a4q2024pressreleasetables.htm:11]**   
- Europe Revenue: **$595M (-13% YoY)**  **[0000021665-24-000003_cl-20231231.htm:139]** **[0000021665-25-000005_a4q2024pressreleasetables.htm:11]**   
- Net Income: $739M (+3% YoY)  **[0000021665-24-000003_cl-20231231.htm:102]** **[0000021665-25-000005_a4q2024pressreleasetables.htm:8]**   

f5a7e289f1186d9db96d573e5d45cd7c05fdc381e3c0836f8ac79cfac1bcf53e

- **Colgate-Palmolive expects to outpace category growth in 2025**, with an organic sales growth target of **3% to 5%**, higher than the category growth of **2% to 4%**, indicating confidence in market share gains and brand strength.  **[CL_3413953_8]**
- **The Hill's pet nutrition business is demonstrating strong growth and margin inflection**, driven by market share gains, innovation, and mix improvements, particularly in high-growth segments like small dogs and wet food, contributing positively to the top and bottom lines.  **[CL_3413953_15]**
- **Colgate-Palmolive has strong cash flow generation, achieving a record $4.1 billion in operating cash flow**, allowing for increased share buybacks of **$1.1 billion net** and a **20% year-over-year increase** in returns to shareholders, reflecting strong capital allocation and commitment to shareholder returns.  **[CL_3413953_2]**

fc035210a9f148c5331a200a7f9bf5ac832ced369725d0a6771451aa1cb961d8

- **Flat Pet Nutrition Category Could Impact Growth**: The pet nutrition business, particularly Hill's, is operating in a **flat category** and expects positive inflection only in the **back half of 2025**. This prolonged stagnation could challenge Colgate's growth targets if the category does not rebound as anticipated.  **[CL_3413953_15]** **[CL_3413953_16]** **[CL_3413953_6]**
- **Exposure to Macroeconomic Headwinds and Volatility**: Colgate faces significant exposure to **macroeconomic headwinds** such as **inflation** and **currency volatility** in key markets like **Latin America**. These factors could negatively impact demand and profitability, and the company acknowledges it is **"not immune to... continued volatility around foreign exchange."**  **[CL_3413953_10]** **[CL_3413953_5]**
- **Potential Impact of Tariffs Not Included in Guidance**: The company's **2025 guidance does not account for potential incremental tariffs**, including possible retaliatory tariffs. Uncertainty around trade policies could negatively affect costs and supply chain, potentially impacting margins and overall financial performance.  **[CL_3413953_8]**

19e8662d12e707d111f841d75cb9d9793bb4bdffeec6505f675a23365dd1b194

1. **Guidance Confidence**  
   **Q:** What gives confidence in 2025 3%-5% growth guidance?  
   **A:** Management is confident in delivering the **3%-5% organic sales growth** despite FX headwinds, due to strong fundamentals, balanced growth in volume and price, and continued investments in capabilities. They believe the business health is solid, with market shares consistently up, and they have built flexibility into plans to offset FX impacts.  **[CL_3413953_2]** 

2. **Gross Margin Outlook**  
   **Q:** How will gross margins expand in 2025?  
   **A:** Gross margins are expected to expand, driven by favorable mix from growing higher-margin businesses like Hill's and Oral Care, reduced low-margin private label sales, strong productivity from the Funding the Growth program, and innovations like Revenue Growth Management (RGM) 2.0. Management is confident in margin expansion in 2025.  **[CL_3413953_3]** 

3. **Hill's Pet Nutrition**  
   **Q:** What's affecting Hill's volumes, especially in Europe?  
   **A:** Hill's volume growth was impacted by about **200 basis points** due to private label drag, but overall, they achieved **3% volume growth** in a flat category—a strong performance. The business is focusing on growth opportunities in segments like small pets and wet food. The category softness in Europe is seen as cyclical, and management feels well-positioned for future growth.  **[CL_3413953_6]** 

4. **A&M Investment Levels**  
   **Q:** Will advertising levels change in 2025?  
   **A:** Advertising and marketing spending is expected to be maintained or slightly increased as a percentage of sales. Management is focusing on optimizing spend through data analytics, programmatic media, and personalization to drive efficiencies and better ROI, ensuring continued brand health and market share gains.  **[CL_3413953_7]** 

5. **Tariff Impact**  
   **Q:** How could tariffs affect the business?  
   **A:** Potential tariffs are not included in the 2025 guidance. Management has built flexibility into the supply chain, investing nearly **$2 billion** in the U.S. over five years, increasing U.S.-based manufacturing facilities by over **40%**. They have contingency plans to mitigate tariff impacts through local manufacturing and alternative sourcing.  **[CL_3413953_8]** 

6. **Volume and Pricing Dynamics**  
   **Q:** How will volume and pricing contribute in 2025?  
   **A:** The company expects a shift from pricing-driven growth to more volume-driven growth across all regions, with balanced contributions. Latin America and Africa will see pricing to offset FX headwinds, while Europe will focus on value-oriented pricing through innovation. Volume shares are increasing across most regions, indicating positive momentum.  **[CL_3413953_5]** 

7. **North America Performance**  
   **Q:** How will price and volume trend in North America?  
   **A:** In North America, both volume and price improved sequentially in Q4. The underlying Oral, Personal, and Home Care businesses performed well, despite softness in Skin Health. Management expects pricing to improve in the back half of 2025 and is seeing positive signs in categories like toothpaste, liquid hand soap, and dish soap.  **[CL_3413953_4]** 

8. **Capital Allocation**  
   **Q:** What's the plan for share buybacks and M&A?  
   **A:** The company prioritizes investing back into the business for efficiency and growth, focusing on return on invested capital. They increased share buybacks to **$1.1 billion**, with returns to shareholders up over **20%** year-over-year. M&A remains aligned with strategic direction, and they are well-positioned to drive shareholder returns through multiple levers.  **[CL_3413953_17]** 

9. **2030 Strategy**  
   **Q:** Any updates on the 2030 strategic plan?  
   **A:** Management is finalizing the **2030 strategy**, maintaining consistency in areas like growth mindset, innovation, productivity, and gross margin expansion. They aim to enhance innovation efforts, invest in data and AI, and leverage professional endorsements to drive premiumization and loyalty.  **[CL_3413953_13]** 

10. **Competitive Activity**  
    **Q:** What competitive pressures are you facing globally?  
    **A:** Heightened competitive activity is seen in markets like India, Turkey, and South Africa, with manufacturers increasing promotions to chase volume. In India, significant discounting occurred in urban modern trade. Management addresses these selectively, focusing on protecting brand health and leveraging innovation to drive category growth.  **[CL_3413953_11]** 

11. **RGM 2.0 Contribution**  
    **Q:** How is RGM 2.0 helping margins and growth?  
    **A:** Revenue Growth Management (RGM) 2.0 leverages analytics, digital tools, and data to enhance pricing and promotion strategies. It enables more effective market execution, contributing to both margin expansion and top-line growth. Customer feedback and returns have been positive, reinforcing its value.  **[CL_3413953_6]** 

12. **Pet Nutrition Outlook**  
    **Q:** What's the outlook for the pet nutrition business?  
    **A:** The fundamentals of Hill's pet nutrition are strong, focusing on growth segments like small dogs and wet food. Despite a flat category, Hill's is growing market share and seeing margin inflection due to mix improvements and innovation. Private label wind-down and expansion are expected to drive top-line and margin growth in 2025.  **[CL_3413953_15]** ,  **[CL_3413953_16]** 

13. **Europe Growth Sustainability**  
    **Q:** Can growth trends in Europe be sustained?  
    **A:** Europe delivered both positive volume and price growth, aided by strong innovation and RGM analytics. Advertising spend increased by **220 basis points**, driving brand health and record market share gains, particularly in Oral Care. Management is confident in sustaining organic growth and operating profit through continued investment and innovation.  **[CL_3413953_18]** 

14. **2025 P&L Shape**  
    **Q:** How will operating income improve in 2025?  
    **A:** Operating income improvement will come from gross margin expansion and SG&A efficiencies. Investments in capabilities like digital and AI will continue, funded through productivity gains across the P&L. The focus is on flexibility and resource allocation to drive performance while maintaining investments that deliver the best returns.  **[CL_3413953_12]** 

15. **China Performance**  
    **Q:** How is China performing and what's the Total relaunch impact?  
    **A:** China delivered positive organic growth, with the Colgate brand up high single digits. The Darlie business remains challenging but is improving. The Total relaunch, started in Latin America, is showing strong share growth and will be rolled out globally. It's a significant formula upgrade focusing on prevention and science, enhancing category growth opportunities.  **[CL_3413953_14]** 

16. **Latin America Macro Impact**  
    **Q:** How are macro headwinds affecting Latin America?  
    **A:** Despite macroeconomic volatility, Latin America performance remains strong, with market shares up in **8 of 10 countries**. Management is accustomed to navigating disruptions through innovation and execution fundamentals. They saw stabilization in markets like Mexico and are outpacing category consumption, though they stay vigilant against FX volatility.  **[CL_3413953_10]** 

1b4d568c113185aac710f0030507ac64525af8a298770664945335868102ed3c

Colgate-Palmolive targets 3-5% organic sales growth in 2025 (vs. 2-4% category), fueled by Hill’s margin gains and $4.1B in operating cash flow supporting $1.1B in buybacks. Management expects strong share gains but remains vigilant on FX headwinds.

8b177ce3fc929e63ab96176c05502d0e8454f9f62696bace6614a26d7ce4b935

**Annual guidance for FY 2025:**  
- **Organic Sales Growth**: 3% to 5%  **[CL_3413953_2]**  (no prior numeric guidance  **[CL_3403986_12]** )  
- **EPS Growth**: low-single-digit to mid-single-digit  **[CL_3413953_2]**  (no prior guidance)  
- **Volume Growth**: Balanced volume growth expected across all divisions  **[CL_3413953_5]**  (no prior numeric guidance  **[CL_3403986_1]** **[CL_3403986_2]** **[CL_3403986_5]** )  
- **Advertising and Promotion**: Projected to be flat to up  **[CL_3413953_7]**  (no prior guidance)  
- **Pricing Strategy**: Continued pricing strategies in Latin America and Africa  **[CL_3413953_5]**  (no prior guidance)  
- **SG&A and Operating Income**: Focus on driving improvement through gross margin expansion and efficiencies  **[CL_3413953_12]**  (no prior guidance)  

d10c7917661c009ae377a82c7b7caea1e8c7e64cefb338fabe99c97ee883f8c4

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 2002  **[0000021665-24-000003_cl-20231231.htm:101]**    | Present  | Current auditor   |

bc8d74780d747e660908f74ee7126a19f9ae22b2a37a55a6a0f38564216423f4

8fc159f7827682975a43984b9360a7270f65b23cb56c87dcb96c2691fae4411f

4b47d45c133ae61c1df904b7ff66dfe6027e7c832c3328d8f5ac68610a46b6e9

- Total Revenue: $5,033 million (+2% YoY)  **[0000021665-23-000037_cl-20230930.htm:18]** **[0000021665-24-000044_cl-20240930.htm:20]**   
- Oral, Personal and Home Care: $3,907 million (+1% YoY)  **[0000021665-23-000037_cl-20230930.htm:18]** **[0000021665-24-000044_cl-20240930.htm:20]**   
- Pet Nutrition: $1,126 million (up **6%** YoY)  **[0000021665-23-000037_cl-20230930.htm:18]** **[0000021665-24-000044_cl-20240930.htm:20]**   
- Asia Pacific: $725 million (up **6%** YoY)  **[0000021665-23-000037_cl-20230930.htm:18]** **[0000021665-24-000044_cl-20240930.htm:20]**   
- Diluted EPS: $0.90 (up **6%** YoY)  **[0000021665-23-000037_cl-20230930.htm:1]** **[0000021665-24-000044_cl-20240930.htm:1]**   

ae4a750e3be3e76fcb0cc0dc8e3e01062ff288460d72e54f859986ba20dd5ef5

bc8c11d16b508558262d0d296b4528c37ed579d5774d5fd7dc85c3a50ac4c7f7

6945b011549ba74793ca40d7ade9250191be9c858a82a734e5fc11306647454a

| Year  | Amount Due (Millions) | Debt Type                  | Interest Rate (%) | % of Total Debt                                                                 |
|-------|------------------------|----------------------------|-------------------|---------------------------------------------------------------------------------|
| 2024  | 20                    | Current Portion of Long-Term Debt | N/A               | 0.2% = (20 / 8,436) * 100 **[0000021665-24-000044_cl-20240930.htm:2]** **[0000021665-24-000044_cl-20240930.htm:53]**                                      |
| 2024  | 507                   | Notes and Loans Payable    | N/A               | 6.0% = (507 / 8,436) * 100 **[0000021665-24-000044_cl-20240930.htm:2]** **[0000021665-24-000044_cl-20240930.htm:53]**                                     |
| 2026  | N/A                   | 0.500% Notes              | 0.500             | N/A **[0000021665-24-000044_cl-20240930.htm:0]**                                                                    |
| 2029  | N/A                   | 0.300% Notes              | 0.300             | N/A **[0000021665-24-000044_cl-20240930.htm:0]**                                                                    |
| 2034  | N/A                   | 1.375% Notes              | 1.375             | N/A **[0000021665-24-000044_cl-20240930.htm:0]**                                                                    |
| 2039  | N/A                   | 0.875% Notes              | 0.875             | N/A **[0000021665-24-000044_cl-20240930.htm:0]**                                                                    |

544f8eda703f41e611b2c630b934e27277768477550b984ca9440c7995202201

1. **Gross Margin Outlook**  
   **Q:** How will gross margins progress this year?  
   **A:** Gross margins are expected to expand in 2024 despite headwinds like rising raw material costs and FX impacts. Pricing will taper off, but growth will come from funding-the-growth initiatives, positive mix, and scale benefits from returning volume growth. The first quarter saw a **310 basis point** year-over-year increase in gross margin, and the company is confident in delivering margin expansion for the year.  **[CL_3381122_4]** **[CL_3381122_9]** 

2. **Organic Sales Guidance**  
   **Q:** Why expect organic sales to decelerate as comps ease?  
   **A:** Comps become more difficult as the year progresses due to previous pricing actions. Pricing will slow in the back half, and it's uncertain how much will convert to volume. Economic uncertainties like FX headwinds and high interest rates persist. Nonetheless, the company remains confident in its guidance and strategy but aims to maintain operational flexibility.  **[CL_3381122_8]** 

3. **Hill's Pet Nutrition Outlook**  
   **Q:** What's driving Hill's volume improvement and outlook?  
   **A:** Hill's performed well in a tough environment, with volume nearly flat excluding private label impact and sequentially up. The business grew high single digits excluding private label, with strong share growth in Science Diet and Prescription Diet. Opportunities exist in wet pet food, especially in cat segments, leveraging new manufacturing to drive growth and improve margins over time.  **[CL_3381122_5]** 

4. **North America Performance**  
   **Q:** Explain North America's volume growth and market share.  
   **A:** North America saw its best volume growth in nearly two years, driven by better execution of innovation and promotional strategies, boosting volume share in toothpaste and toothbrushes. While value shares are a bit choppy, the strategy focuses on improving margins and reinvesting to drive market share. Non-Nielsen channels are growing rapidly, contributing to overall health.  **[CL_3381122_9]** 

5. **Advertising Spend and ROI**  
   **Q:** What's your strategy on increasing ad spend and ROI?  
   **A:** The company is seeing terrific ROI from increased advertising spend, translating into volume growth and consistent share gains. There's a focus on using data and analytics to improve personalization and ROI. Investment is broad-based across the portfolio, not just in Oral Care and Pet, leading to strong performance in brands like Sanex in Europe. The company will continue investing to keep brands vibrant and drive consistent growth.  **[CL_3381122_7]** 

6. **Europe Performance**  
   **Q:** Discuss Europe's strong numbers and private label impact.  
   **A:** Europe had a great quarter with broad-based growth and positive volume despite ongoing pricing. Growth opportunities are driven by innovations in Oral Care and Personal Care, with record shares for meridol and elmex. Private label penetration is higher in Europe, with some acceleration in home care categories, but the company continues to grow by broadening investment across more brands.  **[CL_3381122_10]** 

7. **Consumer Behavior in U.S. and China**  
   **Q:** How is consumer behavior affecting your strategy?  
   **A:** Consumers have been constructive despite inflation. The company balances affordability and premiumization by innovating in both entry-level and premium products. In China, while rural consumers are challenged, the premium segment is robust. The Darlie franchise is well-positioned, and Colgate's move to premium offerings and e-commerce has led to a terrific quarter in China.  **[CL_3381122_6]** 

8. **Cash Flow and CapEx**  
   **Q:** Outlook on cash flow, CapEx, and capital allocation?  
   **A:** Cash flow performance is strong, with slight year-over-year decline due to timing issues. CapEx as a percentage of sales is expected to be lower than last year. Leverage improved to **1.8x**, and a $500 million bond was paid back with commercial paper due to strong cash flow. Capital allocation priorities remain investing in the business, returning to shareholders, and pursuing M&A opportunities.  **[CL_3381122_11]** 

9. **Oral Care Market Share**  
   **Q:** What's driving Oral Care market share growth?  
   **A:** Global market share growth in Oral Care, especially in the Whitening segment, is a result of strategic execution over recent years. Record shares in Europe are due to investments in therapeutic brands like elmex and meridol. Growth is broad-based across regions, driven by innovation and increased spending.  **[CL_3381122_3]** 

10. **FX and Raw Material Headwinds**  
    **Q:** How are FX and raw material costs impacting margins?  
    **A:** Raw material inflation is expected to slightly escalate as the year progresses, and FX transactional impacts are a headwind. Actions like sourcing changes and pricing adjustments are mitigating these effects. Funding-the-growth initiatives and revenue growth management are helping to offset headwinds and support margin expansion.  **[CL_3381122_4]** **[CL_3381122_9]** 

2a0974a49ba6f9f51ce520e04c907ce9e741c0b40ce9addc64202c3d0c5b3623

- **Colgate-Palmolive is achieving strong market share gains in Oral Care globally**, driven by successful innovation and increased advertising investment, which is expected to continue supporting growth in 2024. Noel Wallace highlighted that **oral care was up double digits in the quarter**, translating into strong market share growth, particularly in regions like Latin America, Europe, and Africa/Eurasia, with improved scanner data in the U.S.  **[CL_3370976_2]**
- **Hill's Pet Nutrition is poised for growth**, with expectations of more balanced volume and pricing in 2024, and moderation of agricultural prices benefiting margins. The company is focusing on increasing household penetration, which was **up roughly 10% in the U.S., their biggest and largest market**.  **[CL_3370976_5]**
- **Strong volume growth and market share gains in Latin America**, with positive category inflection and double-digit volume growth in key markets like Brazil and Mexico. This performance demonstrates Colgate's ability to lead in pricing and successfully see volume return, providing confidence for continued balanced growth in 2024.  **[CL_3370976_8]**

fdaee12f23610c07927fdcf71d8cbf0d6d54c2845198476dc18ba3a43405762a

95495077f5f7e08b328c221cca398f98e2ccf7a8de407dad74cd68757e6dbe62

- **Colgate-Palmolive's guidance for 2024 indicates potential deceleration in both organic sales growth and EPS growth compared to strong results in 2023**, raising concerns about slowing momentum.  **[CL_3370976_12]**
- **Weakness in China, particularly in the skin health category, could negatively impact the company's growth prospects**, leading to cautious investment until market conditions improve.  **[CL_3370976_13]**
- **Exceptional productivity gains achieved in Q4 2023 may not be sustainable**, and with expected modest inflation in certain raw materials like fish oil, future margins might face pressure.  **[CL_3370976_9]** **[CL_3370976_11]**

e1f5f96a3f7d69e2218e8858277d791c5c47ebc82c203bef02632d7bce940fea

- **Colgate-Palmolive is achieving strong volume growth globally**, including in key markets like **Latin America and Europe**, driven by **innovation** and **effective marketing investments**, leading to **increased market share and household penetration**.  **[CL_3394672_7]** **[CL_3394672_5]** **[CL_3394672_9]**
- The **Hill's Pet Nutrition segment** is experiencing **significant growth**, with **strong volume and pricing**, improved **gross and operating margins**, and substantial opportunities for future expansion in underpenetrated areas like **wet food and international markets**.  **[CL_3394672_3]**
- The company's strong **revenue growth management** and focus on **premiumization** are driving **margin expansion**, leveraging its **innovation pipeline** and expanding premium brands like **elmex** and **meridol**, contributing to **higher pricing and balanced growth**.  **[CL_3394672_12]** **[CL_3394672_13]** **[CL_3394672_10]**

015584e3a9ace38ecb4b70ed38cf905100f504392caa2b44d297e27c5f9fa57b

- Colgate-Palmolive expects organic sales growth to decelerate as the year progresses due to more difficult comparisons and economic uncertainties, including stubbornly high interest rates and foreign exchange headwinds, which could impact future revenue growth.  **[CL_3381122_8]**
- Management acknowledges ongoing challenges in North America, with market shares remaining choppy and the need for further work to improve performance, indicating potential difficulties in maintaining or growing market share in this key market.  **[CL_3381122_9]** **[CL_3381122_3]**
- The company anticipates escalating raw material inflation and continued foreign exchange volatility may pressure gross margins in upcoming quarters, potentially impacting profitability despite efforts in pricing and cost management.  **[CL_3381122_8]** **[CL_3381122_9]** **[CL_3381122_4]**

afa645b90c394e8136c6e88993f77dd8a26ac11a0b041c37e5bdfa33c77e5874

- **Increased promotional activity in North America may pressure margins.** Noel Wallace acknowledged that they had pulled back too much on promotions last year and needed to get the promotional cadence back, with one retailer coming back online this year. This increased promotional activity could impact pricing and margins.  **[CL_3394672_4]** **[CL_3394672_8]**
- **Inflationary commodity costs and foreign exchange headwinds could impact profitability in the second half.** Noel Wallace mentioned that there will be some inflationary commodity increases and that foreign exchange is an unknown, with Latin currencies moving against them in the last few weeks.  **[CL_3394672_6]**
- **Softness in certain key markets and categories may affect future growth.** Noel Wallace indicated that Mexico slowed a little in the quarter and they'll have to watch that carefully. Additionally, the pet category is described as a little soft right now as household starts come down.  **[CL_3394672_3]** **[CL_3394672_9]**

21efea1924bead332a38bfd9e3b6eea84b8db3147ec1e9c93ff407cdae9b8fb8

- **Colgate-Palmolive is experiencing disruptions and sales challenges in North America, including shipment timing issues due to network disruptions and e-commerce weaknesses in the Skin Health business, with big online retailers pulling back on orders possibly due to inventory adjustments.**  **[CL_3403986_14]**
- **There are signs of "choppiness" and slowdown in key emerging markets like Mexico and Latin America, with Colgate acknowledging economic and political volatility, foreign exchange impacts, and the need to watch these markets carefully.**  **[CL_3403986_9]** ,  **[CL_3403986_5]**
- **Concerns about consumer affordability and increased promotional activity suggest potential pressures on margins, particularly in North America, as Colgate navigates higher promotional redemption rates and normalizing coupon usage to maintain or grow market share.**  **[CL_3403986_10]** ,  **[CL_3403986_7]**

c4864ac286daee2c30c7385997d9eda846f55b24c2241b50e72add0d479d5dc6

1. **Gross Margin Outlook**  
   **Q:** How will gross margins develop over next 12 months?  
   **A:** Gross profit margin was better than expected, up **270 basis points** year-on-year and improved sequentially.  **[CL_3403986_6]**  We continue to see raw material inflation and tougher comparisons ahead.  **[CL_3403986_6]**  Teams have driven productivity to help margins, with volume growth aiding overhead absorption.  **[CL_3403986_6]**  Pricing contribution will mitigate over time, but funding growth combined with revenue growth management will balance the P&L.  **[CL_3403986_6]**  We focus on both gross margin percentage and dollars to invest back in the business and drive top and bottom-line growth.  **[CL_3403986_6]** **[CL_3403986_13]** 

2. **Advertising Investment Strategy**  
   **Q:** Can you discuss your philosophy on advertising spend and ROI?  
   **A:** Our strategy is to build flexibility to reinvest in our brands, driving penetration and brand health.  **[CL_3403986_7]**  We assess ROI internally and aim to drive volume growth and broad-based penetration.  **[CL_3403986_7]**  We evaluate spending geographically to maximize returns, moving funds where we see better ROI.  **[CL_3403986_7]** **[CL_3403986_8]**  We're improving our analytics, including using AI, to enhance digital impact and efficiency.  **[CL_3403986_7]**  We'll keep investing as long as we see top-line and penetration growth.  **[CL_3403986_7]** 

3. **Latin America Outlook**  
   **Q:** What's the outlook for Latin America, especially Mexico and Brazil?  
   **A:** Latin America had a strong quarter despite tougher volume comps.  **[CL_3403986_9]**  We expected some slowdown in organic sales growth, which is in line with expectations.  **[CL_3403986_9]**  Volume has increased sequentially for **four consecutive quarters**.  **[CL_3403986_9]**  In Mexico, post-election choppiness may be normalization; we'll watch spending carefully.  **[CL_3403986_9]**  We've relaunched **Colgate Total** in Latin America to drive premiumization.  **[CL_3403986_9]**  We believe we can take more pricing if foreign exchange moves against us, but we're not immune to economic challenges.  **[CL_3403986_9]** 

4. **Emerging Markets Performance**  
   **Q:** How are emerging markets contributing to growth?  
   **A:** Emerging market numbers were terrific, with positive volume and pricing even excluding Argentina.  **[CL_3403986_5]**  Our larger markets like Brazil, India, and Mexico are performing strongly.  **[CL_3403986_5]**  There are continued opportunities for per capita consumption and premiumization.  **[CL_3403986_5]**  We've refocused on fundamentals like household penetration and improving gross margins.  **[CL_3403986_5]**  While we're not immune to volatility and negative exchange rates, the underlying performance is where we'd like it.  **[CL_3403986_5]** 

5. **Hill's Pet Nutrition Growth**  
   **Q:** Can you comment on Hill's performance and expansion plans?  
   **A:** Hill's had a strong quarter with **mid-single-digit volume growth** excluding private label impact.  **[CL_3403986_2]**  We're reinvesting margin into driving category growth.  **[CL_3403986_2]**  We're gaining market share and are the fastest-growing global brand in pet specialty stores.  **[CL_3403986_2]**  Increased capacity allows expansion into higher growth segments like wet pet food.  **[CL_3403986_12]**  The supply chain team is optimizing the network, giving us more flexibility to pursue international growth opportunities in 2025.  **[CL_3403986_12]** 

6. **Company's Strong Performance**  
   **Q:** What factors are driving your strong performance globally?  
   **A:** Consistency in focused categories and identifying growth opportunities drive our performance.  **[CL_3403986_11]**  We're building capabilities in innovation, digital, advertising ROI, and data-driven decision-making.  **[CL_3403986_11]**  We took deliberate pricing over the last **three years** to invest behind our brands.  **[CL_3403986_11]**  Our brand health and equities are in a good place.  **[CL_3403986_11]**  In Oral Care, focus on premiumization and innovation in whitening adjacencies is paying off.  **[CL_3403986_11]** 

7. **North America Outlook**  
   **Q:** How is North America performing, and what are the challenges?  
   **A:** North America came in as expected, with slight softness in volume due to shipment timing and e-commerce impacts.  **[CL_3403986_2]** **[CL_3403986_14]**  Shipment timing issues will move into Q4 and aren't systemic.  **[CL_3403986_14]**  E-commerce softness was in Skin Health, with big online retailers pulling back orders, likely inventory adjustments.  **[CL_3403986_14]**  We're focusing on setting up for a strong 2025 with robust innovation plans.  **[CL_3403986_2]**  Macro dynamics are stabilizing, with promotional activity normalizing but slightly higher coupon redemption rates.  **[CL_3403986_14]** 

8. **Europe Performance**  
   **Q:** What's driving strong results in Europe, and what do you expect ahead?  
   **A:** Europe had a great quarter with terrific volume growth and some pricing gains.  **[CL_3403986_4]**  Significant investment has led to sustained top-line growth and improved brand health.  **[CL_3403986_4]**  Oral Care shares are at record high levels.  **[CL_3403986_4]**  We have stronger market shares and good penetration as we move into 2025.  **[CL_3403986_4]**  While not immune to market challenges, the business has high gross margins and positive market share trends.  **[CL_3403986_4]** 

9. **Skin Care Strategy**  
   **Q:** Can you expand on your Skin Care performance and strategy?  
   **A:** The skin sector has seen sluggishness, especially in Asia and Europe.  **[CL_3403986_15]**  We're rethinking the business, bringing in outside talent with over **20 years** of experience from L'Oréal.  **[CL_3403986_15]**  The organization is now centralized in the U.S. to drive global decisions and make deliberate investment choices.  **[CL_3403986_15]**  We cleaned up unsustainable market expansion opportunities.  **[CL_3403986_15]**  Despite short-term issues, we believe our long-term strategy will return us to sustained growth.  **[CL_3403986_15]** 

10. **U.S. Oral Care Performance**  
    **Q:** What's happening with U.S. Oral Care market share?  
    **A:** Overall shares are roughly flat, down **20 basis points** on toothpaste and up on toothbrushes.  **[CL_3403986_16]**  We've seen good performance in untracked channels where we've refocused efforts.  **[CL_3403986_16]**  We're dialing up our innovation strategy and addressing the premiumization of the business.  **[CL_3403986_16]**  The toothbrush business continues to perform very well.  **[CL_3403986_16]**  We have plans for major core relaunches in 2025 to drive stronger success.  **[CL_3403986_16]** 

d4bfb9dbc15af6c40597ee28478e99a3d05686e080d7d28fbeb18d9e8ef75ef6

- **Strong performance in emerging markets** with positive volume growth and pricing, particularly in key markets like **Brazil, India, and Mexico**; these markets are expected to drive future growth due to per capita and premiumization opportunities.  **[CL_3403986_5]**
- **Successful innovation and premiumization in Oral Care**, driven by new product launches such as **Colgate Total relaunch in Latin America** and technology improvements in **Max Fresh across India and Southeast Asia**, leading to market share gains and sustained volume growth.  **[CL_3403986_9]** **[CL_3403986_11]**
- **Significant investments in advertising and capabilities** have led to improved brand health and record-high market shares, notably in **Europe**, with **Oral Care shares at record high levels** and strong volume-led top-line growth.  **[CL_3403986_4]** **[CL_3403986_7]**

837a6b8a53fd2120c0d4e668bc6b153f1513109c10007c70c22bf041067835ca

1. **Argentina Devaluation Impact**  
   **Q:** How will Argentina's devaluation affect your financials?  
   **A:** We have an experienced team managing Argentina's hyperinflationary environment, taking proactive measures to mitigate volatility.  **[CL_3370976_3]**  While not immune to devaluation, we'll see impacts unfold over the next quarters, more on the margin line than profit line.  **[CL_3370976_3]**  We'll continue to take pricing to offset transaction impacts and do not anticipate a major impact on our results from Argentina.  **[CL_3370976_3]** 

2. **Gross Margin Outlook**  
   **Q:** Is gross margin strength sustainable into 2024?  
   **A:** We expect gross margin expansion in 2024, driven by pricing, cost moderation, and productivity.  **[CL_3370976_7]**  Pricing has been a big part of our gross margin expansion but will be more balanced going forward.  **[CL_3370976_7]**  Raw materials will remain inflationary but more benign, offering opportunity for margin improvement.  **[CL_3370976_7]** 

3. **Hill's Business Outlook**  
   **Q:** What are your expectations for Hill's volume and pricing?  
   **A:** We'll see a more balanced volume and price as we move into 2024.  **[CL_3370976_5]**  Agricultural prices are beginning to moderate, which is good for costs.  **[CL_3370976_5]**  As pricing settles, we anticipate **volume will return**.  **[CL_3370976_5]**  With stabilizing costs and modest pricing, we'll continue to expand margins in Hill's portfolio.  **[CL_3370976_9]** 

4. **China Sales Performance**  
   **Q:** How did your business perform in China?  
   **A:** We're seeing a slowdown in China, with our business down **low to mid-single digits**, in line with category declines.  **[CL_3370976_13]**  On the skin health side, categories declined more acutely.  **[CL_3370976_13]**  Long-term market fundamentals remain intact, and we're building share.  **[CL_3370976_13]**  We'll be prudent on investments until categories recover.  **[CL_3370976_13]** 

5. **North America Innovation**  
   **Q:** What are your plans for innovation in North America?  
   **A:** We have a strong innovation pipeline across all categories.  **[CL_3370976_14]**  We're accelerating advertising to support our businesses strategically.  **[CL_3370976_14]**  We're in a better place to support categories that had declining advertising.  **[CL_3370976_14]**  With moderated pricing and thoughtful promotions, we aim to drive market share growth in 2024.  **[CL_3370976_14]** 

6. **Latin America Volume Growth**  
   **Q:** Will Latin America's strong volume growth continue?  
   **A:** We anticipate balanced growth as categories inflect positively.  **[CL_3370976_8]**  Volume growth has generated good market share gains.  **[CL_3370976_8]**  In key markets like Brazil and Mexico, we've seen **double-digit volume growth**.  **[CL_3370976_8]**  Our strategy of innovation across price points and increased advertising is driving recovery.  **[CL_3370976_8]** 

7. **Marketing Investments**  
   **Q:** How are you approaching advertising and promotions?  
   **A:** We've accelerated advertising meaningfully over the last few years and will continue into 2024.  **[CL_3370976_4]**  The promotional environment is constructive, about **75–80%** of pre-COVID levels.  **[CL_3370976_4]**  We'll be selective in promotions, aiming to drive healthy volume growth through increased advertising.  **[CL_3370976_4]** 

8. **Raw Material Inflation**  
   **Q:** What's the outlook for raw material costs?  
   **A:** We expect **modest inflation** in 2024.  **[CL_3370976_9]**  Some specialty products like **fish oil** have increased significantly.  **[CL_3370976_9]**  Commodities remain elevated versus pre-COVID levels, but we may see some benefit.  **[CL_3370976_9]**  We'll drive productivity across all areas to support margin expansion.  **[CL_3370976_9]** 

9. **India Market Performance**  
   **Q:** How is your business performing in India?  
   **A:** We're excited and bullish on India, with **9% organic growth** and sequentially better volume.  **[CL_3370976_16]**  We expect the rural segment's vitality to boost volume.  **[CL_3370976_16]**  We have strong innovation planned around our core businesses.  **[CL_3370976_16]**  The team is expanding distribution to capitalize on our investment strategy.  **[CL_3370976_16]** 

10. **Europe Pricing Strategy**  
    **Q:** Will you continue taking pricing in Europe?  
    **A:** We've learned much about pricing in Europe, working closely with retail partners.  **[CL_3370976_17]**  Significant inflation over recent quarters helped in taking more pricing.  **[CL_3370976_17]**  As inflation declines, we'll see a more balanced view of pricing and volume.  **[CL_3370976_17]**  We believe we have the tools to accelerate category growth and margin expansion.  **[CL_3370976_17]** 

3623ea1367ca09a88c4246a9d7b066c7c5bb624485aa757b837e48e217baca19

1. **Pricing Trends and Sustainability**  
   **Q:** Is lower pricing sustainable for volume and P&L?  
   **A:** Management acknowledges the market's focus on volume growth but remains committed to balanced pricing and revenue growth management. Despite a more benign inflationary environment, they plan to continue driving balanced pricing through strong revenue growth management and price pack architecture. They believe the **4.2% pricing** achieved in Q2 is strong and feel confident about their gross profit outlook.  **[CL_3394672_10]** 

2. **Hill's Pet Nutrition Growth**  
   **Q:** Outlook for Hill's volume and pricing growth?  
   **A:** Hill's delivered a strong quarter with **volume growth** despite significant historical pricing. They see opportunities in underpenetrated areas like wet foods and internationally. While the category is a bit soft now, they believe pricing is an opportunity due to brand strength and note a flattening in commodity prices benefiting margins.  **[CL_3394672_3]** 

3. **North America Promotions and Pricing**  
   **Q:** Impact of promotions on pricing and volume?  
   **A:** In North America, increased promotions compared to last year, when they had pulled back too far, led to stronger **volume growth**, particularly in toothpaste, with household penetration up. Pricing was lower due to tough comparisons, but they expect promotional cadence to remain consistent in the second half, focusing on prudent spending.  **[CL_3394672_4]** **[CL_3394672_8]** 

4. **Commodity Costs and Margins**  
   **Q:** Will rising commodity costs require pricing actions?  
   **A:** Management sees some raw material inflation and transactional FX impacts in the second half but feels confident in offsetting these through funding growth and productivity. Unless costs move dramatically, they don't anticipate needing significant incremental pricing. They expect second-half gross margins to be up year-on-year, similar to Q2 levels.  **[CL_3394672_6]** 

5. **Reinvestment and 2025 Outlook**  
   **Q:** Plans for reinvestment and implications for 2025?  
   **A:** They intend to continue investing where they see strong ROI, focusing on advertising and brand building to drive volume growth and household penetration. With flexibility from strong gross margins, they will strategically reinvest upside to sustain growth, consistent with their track record of compounded **EPS growth** and **ROIC over 33%**.  **[CL_3394672_11]** 

6. **Latin America Performance**  
   **Q:** Any concerns in Latin America markets?  
   **A:** Latin America delivered strong results, with **EBIT up 15%**, and organic sales growth led by Brazil's high single-digit volume growth. Every country showed positive volume except Argentina. While Mexico slowed slightly, the overall consumer environment is positive, and market shares are up **90 basis points** in Oral Care.  **[CL_3394672_9]** 

7. **Europe Performance and Outlook**  
   **Q:** Are you seeing consumer shifts or deceleration in Europe?  
   **A:** Despite some shifts in retail environments, management is pleased with Europe's performance, driven by innovation across price tiers and channels. They expect pricing to come down as they lap last year's increases but are encouraged by healthy volume growth. They believe sustained market share growth will bode well for the back half.  **[CL_3394672_5]** 

8. **Consumer Behavior and Value Initiatives**  
   **Q:** Notable changes in consumer behavior?  
   **A:** The consumer environment is constructive globally, reflected in strong volume, penetration, and market share growth. In North America, they've seen some price-value shopping but nothing unusual. Their strategy of innovating across core businesses and retail environments is resonating, and they'll monitor markets carefully.  **[CL_3394672_7]** 

9. **Promotional Strategy and Innovation**  
   **Q:** Will normal promotions trigger competitive response?  
   **A:** Management feels the promotional environment is constructive, and their return to normal levels shouldn't provoke significant competitor reactions. Consumers are more willing to pay for innovation and performance, driven by strong messaging and focus on premium products. Enhancing communication on brand superiority is key.  **[CL_3394672_12]** 

10. **Channel Shifts and Prescription Diet**  
    **Q:** Impact of shift to lower-priced channels?  
    **A:** Non-tracked channels like Costco and Amazon are growing faster, but management doesn't see a significant shift or cause for concern. All channels are focusing on value propositions and price pack architecture. For Hill's Prescription Diet, increased capacity allows them to offer more products consistently, leveraging the opportunity as less than **5%** of pets use therapeutic nutrition today.  **[CL_3394672_14]** 

11. **Three-Brand Strategy in Europe**  
    **Q:** Update on European brand strategy and expansion?  
    **A:** The deliberate strategy of leveraging elmex and meridol alongside Colgate has been successful in Europe, capturing unique consumer needs. They've been selective in expanding these premium brands into markets like Brazil, focusing on pharmacy channels and professional endorsement. They plan to cautiously introduce them to new markets where appropriate.  **[CL_3394672_13]** 

12. **Sustaining Growth and Investment**  
    **Q:** How will you sustain recent improvements?  
    **A:** Management emphasizes maintaining flexibility in the P&L to invest behind brands and target advertising where there's growth. They're using AI and other tools to improve ROI and focus on strong gross margins to fund sustained, consistent, compounded growth moving forward.  **[CL_3394672_2]** 

5a29d92d5626fcb8183b610f0d9fede7f4d954dd049919b4ef24b71a27ffb5ac

- **Colgate-Palmolive is achieving strong organic sales growth driven by balanced volume and pricing**, with **volume growth of 1.3%** despite headwinds, and consistent **market share gains globally**, particularly in **Latin America**, where **Brazil was up double digits** and **volume growth has been consistent at 0.5%, 5.4%, 8%, and 6.2% over the last four quarters**.  **[CL_3381122_14]** ,  **[CL_3381122_8]** ,  **[CL_3381122_6]**
- **Increased investments in advertising and innovation are delivering positive ROI**, leading to **volume growth above category rates** and accelerating **market share gains** in **Oral Care**, with **record shares in Europe** and growth in **Africa** and **North America**.  **[CL_3381122_6]** ,  **[CL_3381122_3]** ,  **[CL_3381122_7]**
- The company's focus on **gross margin improvement** through **revenue growth management** and **funding-the-growth initiatives** has resulted in a **310 basis points gross margin increase year-over-year**, setting the stage for **sustainable earnings per share growth**.  **[CL_3381122_2]** ,  **[CL_3381122_9]**

5618f9785f4fa44fe1c0b0d06d3a4afe91bbba658930bda9665a1d06f23fecf1

Colgate-Palmolive Co (CL)

Financials