Colgate-palmolive (india) Limited · NSE:COLPAL
Colgate-palmolive (india) — Investor Day (November 2024)
73 slides from Colgate-palmolive (india)'s investor day presentation, Nov 27, 2024
Slide 1: Cover letter to stock exchanges: Investor/Analyst Meet presentation
November 27, 2024 The Secretary BSE Limited P.J.Towers- 25th floor Dalal Street Mumbai- 400001 Scrip Code: 500830 The Manager – Listing Department National Stock Exchange of India Limited Symbol: COLPAL Exchange Plaza, C-1, Block – G Series: EQ Bandra – Kurla Complex Bandra (East), Mumbai 400 051 De
Slide 2: Colgate-Palmolive (India) Limited Investor Day - November 2024
Colgate-Palmolive (India) Limited Investor Day - 27 November 2024
Slide 3: Safe Harbour Statement
&Safe We continue Harbour to win Statement This communication, except for the historical data, may contain forward-looking statements, including words, phrases, numbers that set forth targets and projections for future results, the expected achievement and effect of our sustainability strategy and in
Slide 4: Let's talk about Performance Update
Performance Update Let’s talk Strategy in Action about Financial Performance
Slide 5: Consistent Performance, Strong Foundation, Robust Execution
CONSISTENT Performance strong FOUNDATION Robust EXECUTION Colgate >
Slide 6: Let's talk about Financial Performance
Performance Update Let’s talk Strategy in Action about Financial Performance
Slide 7: Consistent Performance - Delivering Topline Growth
&CONSISTENT We continue toPerformance win - Delivering Topline Growth Domestic Net Sales Growth % 6 Source: Internal Data
Slide 8: Topline ahead of FMCG Peers
Positive Stock CONSISTENT Performance Performance - Topline ahead of FMCG Peers FY 23-24 H1 24-25 2.4 x 1.6 x x x CP India FMCG CP India FMCG Note: Sector average includes top 12 listed FMCG companies 7 Source: Company Financials
Slide 9: Consistent Performance - Margin delivery
&CONSISTENT We continue toPerformance win - Margin delivery Gross Margin % EBITDA % 8 Source: Internal Data
Slide 10: Strong Foundation - Solidifying Brand Health
&Strong We continue to win FOUNDATION - Solidifying Brand Health Awareness Consideration Top of Mind Brand of First choice 70 68AB 64A 63 61 62AB 57 56 Calendar year YTD - Jan-Sep’24 2022 2023 2024 YTD Q3’24 2022 2023 2024 YTD Q3’24 9 Source: Kantar Track
Slide 11: Strong Foundation - Solidifying Brand Health
&Strong We continue to win FOUNDATION - Solidifying Brand Health Oral Care Expert North Star 82 80AB 75A VISIBILITY 73 DISTINCTIVENESS EMOTIONAL BOND Calendar year YTD - Jan-Sep’24 2022 2023 2024 YTD Q3’24 10 Source: Kantar Track
Slide 12: Robust Execution - Superior Mix & Digital Efficiencies
Robust EXECUTION - Superior Mix & Digital Efficiencies Elevating Shopper Superiority Digitisation Experience Of portfolio & communication Elevating Shopper Driving sharper actions on Experience data backed insights 11 Source: Internal Data
Slide 13: Let's talk Strategy in Action
Performance Update Let’s talk Strategy in Action about Financial Performance
Slide 14: Softening category growth in Urban
Positive Stock Softening Performance category growth in Urban Toothpaste Vol Growth % Toothbrush Vol Growth % * on MAT basis 13 Source: Nielsen Retail Audit
Slide 15: Strategy in Action: Growth Pillars
Strategy in Action: Growth Pillars Lead Toothpaste Premiumize Lead Category Strategic Pillars Category through Science Growth in Build Personal Based Superior Toothbrush & Care a) Volume Innovation Devices b) Grow Core Superior Mix (Products, Communication, Execution) Driving Financial Efficiency Ena
Slide 16: Strategy in Action: Growth Pillars
Strategy in Action: Growth Pillars Lead Lead Drive category Build Toothpaste Science Led growth in Personal Category Premiumisation Toothbrush Care Growth & Devices 15
Slide 17: Need to Drive Category Consumption
Need to Drive Category Consumption Universal TP Penetration TP Consumption TB Consumption TP gms per capita per year TB handles per capita per year Urban Rural 16 Source: Kantar Household Panel
Slide 18: Indians have Oral Health issues
80% Urban Indians do 9/10 not brush 2X a day 55% Rural Indians do not brush daily Indians have Oral Health 53% Indians continue to issues use a frayed toothbrush Source: Mouth Audit, Kantar HH Panel, Kantar Dental Camp Study
Slide 19: Mission: To help people improve their oral health and beauty
MISSION To help people improve their oral health and beauty.
Slide 20: Oral Health Movement
ORAL HEALTH MOVEMENT Colgate NZ
Slide 21: Always On, All Encompassing Movement
Always On, All Encompassing Movement Universally Accessible Bright Smiles, Brush Twice AI Dental Screenings Bright Futures A Day 20
Slide 22: Gap in Oral Health Awareness in India
Gap in Oral Health Awareness in India… 100% 80% Recommendation Incidence 55% Incidence 13% 10% 9% Realization Realization Action Gum Problems Cavities Visiting a Dentist Incidence vs. Realization Incidence vs. Realization Recommendation vs. Action Source: Mouth Audit 2023, 21 Kantar Dental Camp Stud
Slide 23: Can Lead to Systemic Health Issues
…Can Lead to Systemic Health Issues 22 Source: colgate.com/en-us/oral-health
Slide 24: Technology Can Unlock Access At Scale
Technology Can Unlock Access At Scale ~100 WhatsApp messages daily per person ~1 SMS per person every month 71% Smartphone 1:13,000 Penetration Dentist to Population 23 Source: Internal Data, Statista 5G 70% Towns
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Slide 26: Free Dentist Consultation near you!
Free Dentist Consultation near you! AI Dental Screening AI Dental Screening Report Dentist Visit Scan Free Consultation with 50k Dentists Pin Codes covering 80%+ of urban population Or Call 8806088060 Source: Mouth Audit 2023, Kantar Dental Camp Study 2019 25
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Slide 28: 800 mn+ packs with QR code
800 mn+ packs with QR code Source: Mouth Audit 2023, Kantar Dental Camp Study 2019 27
Slide 29: Scale Like Never Before: 550Mn+ Campaign Reach
Scale Like Never Before: 550Mn+ Campaign Reach Source: Mouth Audit 2023, Kantar Dental Camp Study 2019 28
Slide 30: Scale Like Never Before: 500+ On-Ground Locations
Scale Like Never Before: 500+ On-Ground Locations 300+ stores, colleges, societies, bus stops & many more.. Source: Mouth Audit 2023, Kantar Dental Camp Study 2019 29
Slide 31: AI Dental Screenings Are Happening Across India!
AI Dental Screenings Are Happening Across India ! Source: Internal Data
Slide 32: Colgate Free AI dental score
Colgate NZ Apna Free Al dental score dekha kya?" “T&C apply at https://www.colgate.com/en-in/ohm The dental screening & report is completed using artificial intelligence &is not a substitute for professional diagnosis. Dentist advice recommended.
Slide 33: Bright Smiles, Bright Futures
Bright Smiles, Bright Futures® New Government Partnerships for Sustainable Social Impact 2023 2024 5.2 million 10 million Children Children 10,000+ 23,000+ Schools Schools 150+ 200+ Cities/Towns Cities/Towns Partnerships with states representing 24% of India’s population [UP, Goa, AP] 32 Source: Int
Slide 34: Continued Investment on Brush Twice A Day
Continued Investment on Brush Twice A Day Bigg Boss Partnership Diwali Activations IPL Partnership 33 Source: Internal Data
Slide 35: Accelerating the Core via Superiority
Accelerating the Core via Superiority New communication live: Oct’24 ‘The Daily Grind’: establishing the relevance of ‘Strength of Teeth’ Enhanced Packaging Experience Rural Reach Program Continues Wall paintings+20Rs promo new film 34 34
Slide 36: Colgate
Colgate NY £ Daddy just
Slide 37: Accelerating the Core via Superiority
Accelerating the Core via Superiority Continued growth momentum ahead of category in Q2 FY’25 +500 bps Increased Weighted Distribution YTD’24 Maxfresh Blue Focus in Key Geos 36
Slide 38: Consideration for Key Sub-Brands
Accelerating the Core via Superiority Consideration for Key Sub-Brands 78AB 72A 65 57AB 50A 50AB 43 44A 40 2022 2023 2024 YTD 2022 2023 2024 YTD 2022 2023 2024 YTD Strong Teeth MaxFresh Active Salt 37 Source: Kantar Track
Slide 39: Strategy in Action: Growth Pillars
Strategy in Action: Growth Pillars Lead Lead Drive category Build Toothpaste Science led growth in Personal Category Premiumisation Toothbrush Care Growth & Devices 38
Slide 40: Premiumise: Own Proactive Health with Colgate Total
Premiumise: Own Proactive Health with Colgate Total ~3X growth vs. TP category Driving Accessibility + Availability Pricing : 0.77X vs Dec’23 Distribution : 30k → 3L stores Total Anti-Tartar New Launch Available across major Ecom platforms 39 *Source: Nielsen MAT Sep’24 MT Val sales
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Slide 42: Premiumise: Create Desire for Whitening
Premiumise: Create Desire for Whitening Strong double digit growth Targeted Media approach Cohort wise sharp media plan + strong influencer outreach Enhanced Packaging Experience 41 Source: Internal Data
Slide 43: Bringing Newness Into People's Lives
Bringing NEWNESS Into People’s Lives
Slide 44: Talk of the Town Brand Experience
Talk of the Town Brand Experience Viral Influencer Campaign 3 Value Share On Ecom* ! Available In Major MT Chains CGI Banners on FK Brand Flip Live Stream on Amazon banners ~ 44 Mn Views 250K Likes 19k Shares *Quick-commerce, Amazon
Slide 45: Strategy in Action: Growth Pillars
Strategy in Action: Growth Pillars Lead Lead Drive category Build Toothpaste Science led growth in Personal Category Premiumisation Toothbrush Care Growth & Devices 44
Slide 46: Lead Toothbrush Category Growth
Lead Toothbrush Category Growth 1.2 Handles per person per year 78% Category below INR 40 45 Source: Internal Data, ACN Retail Audit
Slide 47: Lead Toothbrush Category Growth
Lead Toothbrush Category Growth On Strong Growth Momentum 1.4X vs Category YTD’24 Zig Zag relaunch leading to gains 1.2X $SOM gain on ZZ equity YTD’24 Leader in Super Premium Segment 46 Source: Internal Data
Slide 48: Strategy in Action: Growth Pillars
Strategy in Action: Growth Pillars Lead Lead Drive category Build Toothpaste Science led growth in Personal Category Premiumisation Toothbrush Care Growth & Devices 47
Slide 49: Build Personal Care
Build Personal Care Strong double digit growth New Aroma Range launched 3 new variants with improved fragrance New Communication live ‘Savour The Feeling’ mega campaign with omnichannel consumer activations 48
Slide 50: Continued Focus on Diversification
Continued Focus on Diversification Wide Global Portfolio to choose from 49
Slide 51: Strategy in Action: Enablers
Strategy in Action: Enablers Lead Toothpaste Premiumize Lead Category Strategic Pillars Category through Science Growth in Build Personal Based Superior Toothbrush & Care a) Volume Innovation Devices b) Grow Core Superior Mix (Products, Communication, Execution) Driving Financial Efficiency Enablers
Slide 52: Superior Technology Powers Our Products
Superior Technology Powers Our Products Unique Tech Winning Freshness 130+Patents on 5% KNO3 for Active Oxygen Tech Ca Boost+Arginine with Ultrafreeze DZA Tech sensitivity protection for Teeth Whitening 51 Source: Internal Data
Slide 53: Science Backed Innovations
Science Backed Innovations Scientific Expertise Advanced Testing Capability Consumer Centricity 900 Patents granted per year 100 +clinical trials ~21,000 Indian Consumers met Team of 900+ scientists State of the art labs Predictive models 100+publications Source: Internal Data, 52 Colgate.com/en-us/m
Slide 54: Superior Mix: Products & Communication
Superior Mix: Products & Communication Product Creative Packaging Superiority Performance 100% 90% 90 % Core Brands test superior/at parity Portfolio had a packaging upgrade Tracking above norms vs To aid navigation For ads on air Eyeball Competition & win in store in L2Y 53 Source: Kantar, Internal
Slide 55: Superior Mix: Packaging Evolution Journey
Superior Mix: Packaging Evolution Journey 54 Source: Kantar, Internal Data
Slide 56: Superior Mix: Elevating shopper experience in New Retail
Superior Mix: Elevating shopper experience in New Retail Superior Shelf Appeal Enhanced discoverability & engagement Increasing premium mix Premium growing at +2x vs Rest of TP Growth, Share, Margin Accretive Net sales growth ~2x of Company Market share +130 bps vs Company Margin higher by ~200 bps
Slide 57: Digital at the Core: Strengthening consumer engagements
Digital at the Core: Strengthening consumer engagements Pivot towards Higher Engagement OHM Leveraging the power of AI Scores via AI Tools on eComm Scan Or Call 8806088060 X 1.5 X Content Score Content Score 56 56 Source: Internal Data
Slide 58: Digital at the Core: Simplifying sales fundamentals
Digital at the Core: Simplifying sales fundamentals ML Led assortment model IR based AI model to drive MT 5Ps for 1.7 Mn stores Drive customized assortment Drive premium availability and superior shopability Assortment Score In-store Excellence 1.15x x Non-AmaZing Stores AmaZing Stores YTD Gr% x 2x
Slide 59: Digital at the Core: Supply Chain
Digital at the Core: Supply Chain AI/ML Demand Forecasting Vision Cameras in Plant Digital Twin in Plant Lower Company Inventory No Touch Checks to Deliver Efficient Operations & along with increased Superior Quality Energy Consumption Distributor sales 58 Source: Internal Data
Slide 60: Organisation & People Capabilities
Organisation & People Capabilities Learning & Future Ready Org Workplace for All Development Focus @ 59 Source: Internal Data
Slide 61: Environment at our Core - Plastic Recyclability Journey
Environment at our Core - Plastic Recyclability Journey ● 100% of Colgate India’s Toothpaste tubes (by volume) to be Recyclable FY 25 Exit ● FIRST & ONLY Toothpaste brand in the country to reach this milestone ● Annually, over 2 billion Toothpaste tubes to be Recyclable FY 24 ● 50% of Colgate India’
Slide 62: Let's talk about Financial Performance
Performance Update Let’s talk Strategy in Action about Financial Performance
Slide 63: Driving Financial Efficiency
Driving Financial Efficiency DELIVERING OPERATING PROFITS ad g er isin s In Br ve an Ov tim he s t ds in Op g in 62
Slide 64: Strong P&L, Broad-based Growth
Strong P&L, Broad-based Growth H1 FY 24-25 Topline Growth ₹ 3,095 Crore +11.4% y-o-y Momentum Gross Margin Advt. to NS Strong margins & Brand Investments 69.3% 14.3% +90 bps y-o-y +14.1% y-o-y EBITDA Margin NPAT* Robust Profitability 32.5% ₹ 759 Crore +10 bps y-o-y +23.7% y-o-y * Net Profit after tax
Slide 65: Leveraging Strong Margin Headroom
Leveraging Strong Margin Headroom Margin profile strengthened above normative levels Gross Margin % EBITDA Margin % 64 Source: Company Financials
Slide 66: Strong Focus on Revenue Growth Management
Strong Focus on Revenue Growth Management STRATEGIC PRICING TREND 1 Driving Volume Growth Toothpaste Average Realisation per KG 2 Strategic Pricing 3 Accelerating Premiumisation 4 Competitive Promotional Spending Calendar year 65 Source: Internal Data
Slide 67: Driving Efficiencies & Effectiveness
Driving Efficiencies & Effectiveness “Funding The Growth” Savings 1 Procurement Efficiencies 5.8% of sales in CY 2024 2 Localisation of Sourcing Re-invested 3 Automation Initiatives ~USD 11 Mn in CY 2023 - 2024 4 Design & Manufacturing efficiencies Superiority of Science, Packaging & Sustainability Calenda
Slide 68: Consistent investment behind Strategic Pillars
Consistent investment behind Strategic Pillars Driving Consumption Advertising spend Premiumise 14.3% to NS 14% y-o-y Accelerate Core Build Personal Care In ₹ Crore 67 Source: Company Financials
Slide 69: Delivering Operating Profits
Delivering Operating Profits Margin profile strengthened above normative levels Gross Margin % EBITDA Margin % 68 Source: Company Financials
Slide 70: Distributor Inventory at healthy levels
Distributor Inventory at healthy levels Exit Inventory in # days - Calendar year 69 Source: Internal Data
Slide 71: Enhancing Shareholder Value
Enhancing Shareholder Value Improved Cash Consistent Higher RoCE Higher EPS Generation Dividends In ₹ Crore In ₹ per share In ₹ per share * Excluding Changes in Bank Balances 70 Source: Company Financials
Slide 72: Consistent Performance, Strong Foundation, Robust Execution
Lead Category Consumption Drive Consistent Growth despite near-term Macro Challenges Continued emphasis on Innovation & Brand Investments Steadfast Focus on Strong Governance and Value Creation CONSISTENT STRONG ROBUST PERFORMANCE FOUNDATION EXECUTION 71
Slide 73: Q&A
Q&A
Colgate-Palmolive (India) — Investor Day (November 2024) on 6ix