Colgate

4
1)TOP QUALITY Colgate ranks the number 1 'Most Chosen Consumer Brand' in India http://www.colgate.co.in/app/Colgate/IN/Corp/News/CompanyNews/HomePage.cvsp? newsArticle=News_230614 Ranked No.1 in Kantar Worldpanel’s 2014 Brand Footprint report Mumbai, June 23, 2014: Colgate is once again ranked the No.1 ‘Most Chosen Consumer Brand’ in India, in the 2014 Brand Footprint report by consumer knowledge and insights firm, Kantar Worldpanel. This is the third consecutive time that the market leader in Oral Care is ranked number 1, across the FMCG and Personal Care category. The study highlights that in addition to leading the category in India, Colgate also outshined in global rankings. Colgate retained its position as the second most chosen brand globally in a list of the top 50 brands. The brand that revolutionized Oral Care with innovative products such as Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer™ and Colgate Visible White, earned the top spot in the health and beauty categories, globally. An analysis in the report stated, "In the country rankings, Colgate remains the most-chosen health and beauty brand in a total of 16 countries." Furthermore, Colgate is the only Oral Care brand to acquire a spot in the top 10most chosen brands globally as well as in India. With Asia being the fastest growing region at 2.9% Consumer Reach Points (CRP) and India growing at 5% CRP, Colgate is the only Oral Care brand to be leading as #1. Most Trusted Brand across all categories for four consecutive years from 2003 to 2007 and in 2011, 2012 and 2013 by Brand Equity’s Most Trusted Brand Survey. It is the only brand to be in the top three from 2001-2013. 2)LOW COST OPERATION http://www.suredividend.com/dividend-aristocrats-in-focus-part-49-colgate-palmolive-cl/ Colgate-Palmolive’s business operations are broken down into 2 primary segments: Oral, Personal, and Home Care; and Pet Nutrition. The Pet Nutrition segment has generated 13% of revenue and 13% of operating profit for Colgate- Palmolive segment operates primarily under the Hill’s Pet Nutrition andScience Diet brand names. The Oral, Personal, and Home Care segment is Colgate-Palmolive’s largest by far. The segment has generated 87% of the company’s sales and operating profits through the first 9 months of fiscal 2014. The segment sells well known

description

colgate

Transcript of Colgate

1)TOP QUALITY Colgate ranks the number 1 'Most Chosen Consumer Brand' in Indiahttp://www.colgate.co.in/app/Colgate/IN/Corp/News/CompanyNews/HomePage.cvsp?newsArticle=News_230614Ranked No.1 in Kantar Worldpanels 2014 Brand Footprint reportMumbai, June 23, 2014: Colgate is once again ranked the No.1 Most Chosen Consumer Brand in India, in the 2014 Brand Footprint report by consumer knowledge and insights firm, Kantar Worldpanel. This is the third consecutive time that the market leader in Oral Care is ranked number 1, across the FMCG and Personal Care category.The study highlights that in addition to leading the category in India, Colgate also outshined in global rankings. Colgate retained its position as thesecond most chosen brand globallyin a list of the top 50 brands.The brand that revolutionized Oral Care with innovative products such as Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer and Colgate Visible White, earned the top spot in the health and beauty categories, globally. An analysis in the report stated, "In the country rankings, Colgate remains the most-chosen health and beauty brand in a total of 16 countries."Furthermore, Colgate is theonly Oral Care brand to acquire a spot in the top 10most chosen brands globally as well as in India. With Asia being the fastest growing region at 2.9% Consumer Reach Points (CRP) and India growing at 5% CRP, Colgate is the only Oral Care brand to be leading as #1. Most Trusted Brand across all categories for four consecutive years from 2003 to 2007 and in 2011, 2012 and 2013 by Brand Equitys Most Trusted Brand Survey. It is the only brand to be in the top three from 2001-2013.2)LOW COST OPERATIONhttp://www.suredividend.com/dividend-aristocrats-in-focus-part-49-colgate-palmolive-cl/Colgate-Palmolives business operations are broken down into 2 primary segments: Oral, Personal, and Home Care; and Pet Nutrition. The Pet Nutrition segment has generated 13% of revenue and 13% of operating profit for Colgate-Palmolive segment operates primarily under theHills Pet NutritionandScience Dietbrand names.The Oral, Personal, and Home Care segment is Colgate-Palmolives largest by far. The segment has generated 87% of the companys sales and operating profits through the first 9 months of fiscal 2014. The segment sells well known consumer brand products includingColgate,Palmolive,SpeedStick,SoftSoap,Suavatel, andAjax.Colgate-Palmolive further divides its Oral, Personal, and Home Care segment into 5 geographic divisions. Each divisions percentage of the segments total revenue and operating profit is shown below to illustrate the global diversity of Colgate-Palmolive:3)SPEED DEVELOPMENT

Growth ProspectsColgate-Palmolive delivered mediocre EPS growth of 4% and revenue growth of 3.5% in its most recent third quarter versus the same quarter a year ago. Despite recent weakness, the company has a solid history of growth. Colgate-Palmolive has grown EPS by about 7.8% a year over the last decade. Revenue per share has grown by 6.6% per year and dividends per share have grown by 10.9% per year over the same time period.Going forward, I expect Colgate-Palmolive to deliver solid EPS growth of between 5.5% and 8.5% per year. EPS growth will be driven by organic growth of between 4% and 6% going forward. Colgate-Palmolive has reduced its net share count by about 1.5% per year over the last decade; I expect share count reductions to add about 1.5% of growth for shareholders. Colgate-Palmolive has a history of increasing its gross and operating margins through efficiency gains and price increases. I expect margin expansion to add between 0% and 1% to growth per year in the future. In total, shareholders of Colgate-Palmolive can expect EPS growth of between 6.5% and 8.5%.Colgate-Palmolives organic growth will come emerging market growth and new product initiatives in developed markets. The companys biggest growth drivers will be China and India. Indian per capita GDP is expected to double by 2020, with China expecting rapid growth as well. In addition, populations are expected to continue rising in both China and India. China and India are expected to lift 700 million people into the middle class by 2020. This rise in middle-class consumers bodes well for Colgate-Palmolive. Emerging market growth will fuel the companys growth going forward.

PRODUCTSColgate-Palmolive has a wide line of productsin the following areas: personal care, householdand fabric care, pet nutrition, andassorted specialty items. Colgate-Palmolive's personal care lineincludes Colgate toothpaste; Mennen, Speed Stick, and Lady Speed Stick deodorants; SkinBracer after shave; and Irish Spring deodorantand Palmolive cosmetic soaps. Palmolive is also abrand in the household/fabric carearea with its dishwashing liquids and powder. Also includedin this area are Ajax, Fablaundry detergent, Murphy Oil soap, and Handi Wipes. With theacquisition of Hills Pet Products in 1976, Colgate-Palmolive entered the pet food business, withspecialty dietary management products HealthBlend and ScienceDiet, as well as PrescriptionDiet, a line available only throughveterinarians. Finally, through its subsidiary, Princess House,Colgate-Palmolive manufactures crystal and giftware.Chief Competitors:Colgate-Palmolive's competitors include: American Home Products;Amway; Avon; Gillette; and Procter & Gamble.In 1994 the company launched its largest series of new products in adecade: Colgate Toothpastewith Baking Soda & Peroxide, Irish Spring Waterfall Clean Soap, Palmolive AntibacterialDishwashing Liquid, and the Murphy Kitchen Careline. In the mid-1990s it also introducedColgate Plus Ultra Fit Compact Head toothbrushes, and in December 1996 it introduced LadySpeed Stick Invisible Dry Deodorant. With concerns over germs growing in the 1990s,antibacterial soaps became popular, and in 1996 Colgate announced the introduction of IrishSpring Sport, an antibacterial product intended to compete with a "body wash" produced byProcter & Gamble. The company anticipates continued global success with present and futureproducts