Colgate-palmolive Company · NYSE:CL
Colgate-palmolive — Q2 2024 Earnings Presentation
30 slides from Colgate-palmolive's earnings presentation, Jul 26, 2024
Slide 1: Colgate-Palmolive Company 2Q 2024 Earnings Presentation
COLGATE-PALMOLIVE COMPANY 2Q 2024 EARNINGS PRESENTATION JULY 26, 2024
Slide 2: Notice for Investor Presentation
July 2024 Notice for Investor Presentation Please review the following second quarter 2024 earnings presentation in conjunction with our second quarter 2024 earnings press release, our second quarter 2024 prepared management remarks, our second quarter 2024 Quarterly Report on Form 10-Q and addition
Slide 3: Colgate-Palmolive
COLGATE-PALMOLIVE We are a $19.5B global consumer products company with ~34,000 diverse and dedicated people serving over 200 countries and territories. As a caring, innovative growth company, we are united behind our purpose: reimagining a healthier future for all people, their pets and our planet.
Slide 4: Tightly Focused on Four Attractive Core Categories
TIGHTLY FOCUSED ON FOUR ATTRACTIVE CORE CATEGORIES
Slide 5: Oral Care, Pet Nutrition, Personal Care, Home Care
ORAL CARE PET NUTRITION PERSONAL CARE HOME CARE
Slide 6: CEO quote on strong results and increased 2024 expectations
“Our strong results this quarter and in the first half of the year add to our confidence that we are executing the right strategies to deliver on our increased 2024 organic sales and Base Business earnings growth expectations, drive cash flow and generate consistent, compounded earnings per share gr
Slide 7: 2Q 2024 Highlights
2Q 2024 HIGHLIGHTS ● Net sales grew 4.9%, Organic sales* grew 9.0%, with balanced volume and pricing growth ● Every operating division delivered positive volume growth in the quarter as we work to build household penetration ● Base Business Gross profit margin* increased 300 basis points ● On a Base
Slide 8: Delivering Strong Organic Sales Growth
DELIVERING STRONG ORGANIC SALES GROWTH Organic Sales Growth % } Target Range 3-5% Non-GAAP Historical numbers have been recast to reflect update to rounding convention
Slide 9: 2024 Guidance - GAAP
2024 Guidance* - GAAP ● Net sales growth guidance remains 2% to 5% including a mid-single-digit negative impact from foreign exchange ● Gross profit margin still expected to be up for the year ● Advertising still expected to be up both on a dollar basis and as a percentage of net sales ● GAAP EPS st
Slide 10: 2024 Guidance - Non-GAAP/Base Business
2024 Guidance* - Non-GAAP/Base Business ● Organic sales growth guidance raised to 6% to 8% (versus 5% to 7% previously) ● Gross profit margin still expected to be up for the year ● Advertising still expected to be up both on a dollar basis and as a percentage of net sales ● Base Business EPS growth
Slide 11: Strong Investment Behind Our Brands to Drive Balanced Organic Sales Growth
STRONG INVESTMENT BEHIND OUR BRANDS TO DRIVE BALANCED ORGANIC SALES GROWTH ● Advertising up 18% vs 2Q 2023, and up double-digits for six consecutive quarters ● Significant investment in advertising and capabilities planned for 2024 to support innovation and drive balanced organic sales growth throug
Slide 12: Raw & Packaging Materials
RAW & PACKAGING MATERIALS ● Our expectation is for raw and packaging material costs to increase modestly in 2024, predominantly driven by a year-over-year increase in the transactional impact of foreign exchange ● Commodity costs expected to increase sequentially in 2nd half 2024
Slide 13: Driving Operating Leverage
DRIVING OPERATING LEVERAGE ● Revenue growth management aiding pricing ● Driving strong funding-the-growth savings ● Delivering savings through our 2022 Global Productivity Initiative ● Discipline on overhead spending while still investing in driving capabilities across the Company
Slide 14: Driving Growth Through Science-Led, Core and Premium Innovation
DRIVING GROWTH THROUGH SCIENCE-LED, CORE AND PREMIUM INNOVATION
Slide 15: Colgate's "Chair to Sink" Whitening Portfolio
COLGATE’S “CHAIR TO SINK” WHITENING PORTFOLIO MOUTHWASH TOOTHBRUSH TOOTHPASTE OVERNIGHT PEN EXPRESS PEN COMFORT FIT LED PROFESSIONAL PROFESSIONAL TAKE-HOME IN-OFFICE MSRP $4-10 $20 $25 $50 ~$200 ~$350 EVERY DAY AT-HOME WHITENING PROFESSIONAL
Slide 16: Driving Market Share Gains in Whitening
DRIVING MARKET SHARE GAINS IN WHITENING Colgate Brand Top 8 Markets +280 +270 WILL REPLACE WITH UPDATED +220 CHART AND STYLE +50 +40 Change in Basis Points YOY Source: Worldview through May 2024
Slide 17: Driving Global Market Share in Toothpaste
DRIVING GLOBAL MARKET SHARE IN TOOTHPASTE Worldwide Toothpaste Market Share in US$ WILL REPLACE WITH UPDATED CHART AND STYLE Source: Worldview through May 2024
Slide 18: Colgate Maxfresh Relaunch in India
COLGATE MAXFRESH RELAUNCH IN INDIA ● New Xtra fresh formula powered with breakthrough cooling technology ● 10X longer lasting cooling formula* ● Fastest growing core sub-brand in India * versus regular fluoride toothpaste
Slide 19: Colgate Total Plaque Pro Release
COLGATE TOTAL PLAQUE PRO RELEASE ● Dissolves and lifts away gum harming plaque with daily brushing ● 2X less gum harming plaque* * vs. a regular fluoride toothpaste with twice daily brushing for 6 months oride toothpaste with twice daily brushing for 6 months
Slide 20: Brazil elmex Pharmacy Launch
Brazil elmex PHARMACY LAUNCH Toothpaste • Fastest growing brand in Value Growth Total Drugstores drugstores in Brazil in the Brazil (MayYTD23 vs toothpaste sensitivity segment MayYTD24) Toothpaste Sensitivity Segment Source: Nielsen Retail Index T. Drugstores YTD May 24 Value sales
Slide 21: Colgate Gum Expert
COLGATE GUM EXPERT • 6,000+ tapered bristles to gently remove plaque • 3X reduction in gum bleeding* • Designed by dental experts *vs an ordinary flat trim toothbrush, after 12 weeks of use
Slide 22: hello Vitamin C Toothpaste
hello VITAMIN C TOOTHPASTE ● Daily-use whitening toothpaste ● Patent-pending
Slide 23: EltaMD Driving Inclusivity in Sunscreen
EltaMD DRIVING INCLUSIVITY IN SUNSCREEN ● Designed for and tested on deeper skin tones ● Featuring Invisible Blend Technology, a patent-pending blend that rubs in sheer with no white cast ● UV Clear: ○ 92% women of color agree it leaves no white cast* ○ Clinically proven to improve skin discoloratio
Slide 24: Sanex Zero Relaunch
SANEX ZERO RELAUNCH • Clinically proven • Hypoallergenic • New Sanex zero% for sensitive skin • Recommended by dermatologists
Slide 25: Palmolive Naturals Relaunch - Europe
PALMOLIVE NATURALS RELAUNCH - Europe • Nourishes skin • With Vitamin E • Fragrances inspired by nature • 95% natural origin ingredients
Slide 26: Soupline Hearts Unit Dose Fabric Conditioner
SOUPLINE HEARTS UNIT DOSE FABRIC CONDITIONER • New convenient unit-dose form • 72% less plastic packaging vs liquids* • Delivers an irresistible softness and fragrance, making your clothes feel fluffy and pleasant to wear * vs. the weight of plastic used to produce a 650ml bottle
Slide 27: Fabuloso 2X Concentrated Formula
FABULOSO 2X CONCENTRATED FORMULA ● More Concentrated Formula* ○ 2x more active ingredients* ○ Provides 2x more uses in the same bottle* * versus non-concentrated Fabuloso Original
Slide 28: Suavitel & Fleecy Shed Shield
SUAVITEL & FLEECY SHED SHIELD • Unique formula for pet parents to repel pet hair and fight pet odor* • Over 90%** of users would recommend using this product * versus detergent alone, against wet dog and cat urine odors, tested on cotton and cotton-polyester fabric ** Per Suavitel Shed Shield websit
Slide 29: Hill's Prescription Diet z/d Low Fat
HILL’S PRESCRIPTION DIET Z/D LOW FAT • Therapeutic nutrition to help manage food and fat sensitivities and promote healthy skin • Hill’s first low-fat diet in the derm category • Available in dry and wet formulas for dogs
Slide 30: New Capacity Unlocks Growth for Hill's Wet Pet Food Diets
NEW CAPACITY UNLOCKS GROWTH FOR HILL’S WET PET FOOD DIETS • Supporting geographic expansion of wet food portfolio along with new sizes, flavors and textures • Incremental shelf space in pet specialty channel for new wet food innovation
Colgate-Palmolive Company — Q2 2024 Earnings Presentation on 6ix