Cresco Labs (CRLBF) 26 Jan 242023 Q4 Earnings call transcript

Company Profile

Participants

John Faucher	executive
Noel Wallace	executive
Dara Mohsenian	analyst
Bryan Spillane	analyst
Stanley Sutula	executive
Andrea Teixeira	analyst
Filippo Falorni	analyst
Callum Elliott	analyst
Stephen Robert Powers	analyst
Peter Grom	analyst
Nik Modi	analyst
Christopher Carey	analyst
Olivia Tong Cheang	analyst
Kaumil Gajrawala	analyst
Lauren Lieberman	analyst
Mark Astrachan	analyst
Robert Ottenstein	analyst
Edward Lewis	analyst

Call transcript

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Operator

Good morning. Welcome to today's Colgate-Palmolive Fourth Quarter and Full Year 2023 Earnings Conference Call. This call is being recorded and is being simulcast live at www.colgatepalmolive.com.

Now for opening remarks, I'd like to turn this call over to Chief Investor Relations Officer and Executive Vice President, M&A, John Faucher.

John Faucher

Thanks, Betsy. to conference quarter call. welcome XXXX full and release earnings morning, our and fourth year Good This John is Faucher. Today's conference call will include forward-looking statements. differ could results materially statements. these Actual from actual Please that Form filings Colgate's discussion with to earnings from SEC, year available results including prepared refer on annual and website, could subsequent the and release of these report SEC XXXX on all materials recent and a related and materially the to XXXX most our cause our QX XX-K factors the for differ press statements. full filings,

measures also website. This conference X, XXXX QX a call X release. corresponding Colgate's financial non-GAAP release is measures, press X earnings financial reconciliation X, those will of is Tables included include in in full available discussion earnings on press the A of the identified the and and including to X GAAP

this on some full and and and outlook. Executive Officer; the me Chairman, will our year Wallace, you Joining Chief Noel President call QX are XXXX and Chief on Officer. our provide Sutula, morning Stan results Noel Financial thoughts with

it open up Q&A. Noel? then will We for

Noel Wallace

positive Thanks, year strong discuss XXXX for very finish a thanks good good everyone, outlook our joining our us to and XXXX. morning, John for and to in and

this line of investing X% to performance. years, marked flow fifth organic target our the to while long-term either sales of We behind growth, our still our XXXX or strong growth. our deliver capabilities deliver consecutive future while advertising ahead particularly all Over organic strengthen X% scaling in building year and X we cash to range. brands year and focused on past growth of sales improving and rebuilding been have on goals those our sustaining our X margins

year. and quarter, for growth, We at the impact growth X excluding categories as rounded of all lower the fourth was organic between delivered sales volumes up to the private X and improved quarter we in balance pricing of exited volume Volume label flat our in with and divisions, balanced all the Hill's.

behind levels on improving the strong a market momentum Our innovation, improving brand investment with spent. of is higher each effectiveness dollar of share focus

seeing benefits our analytics as transformation data proceed. continue We of our the to efforts are also digital with

while strength growth combined growth us to cash revenue increasing with increase drove We and initiative absorbing management base the expense, our productivity to to funding in from allowing buy base profit pension the We high investment higher and results margin drove back expansion, the business flow behind and commitment tax. growth growth, growth. of invest single-digit our global our capabilities Our EPS efforts, business operating free stock. XX% than delivered and interest marketing and these brands, and strategic double-digit headwinds greater capacity gross

Colgate challenging deliver consumer, around both flexibility We in softness as the of as large XXXX same statement as political enter deeply continued to in China results momentum sheet. headwinds exchange and a the balance also increased environment. challenged our with and unrest, elections dividend the world. plans am the this of greater foreign I have XXst and in number a strong income our XXXX in challenges proud XXXX, offer and will operating delivered year. our consecutive a for people many of geopolitical in place the We environment well

our have consistent XXXX to few we EPS reflects on past compounded As over returning ambition. mentioned focused we're this quarters, the guidance and growth

growth cash while incremental and to the in high-quality volume deliver share. to growth growing. to back sales invest to fund strong to This in should growing deliver invest us and drive cash this plan organic investment to continue balanced return enable business per earnings on productivity pricing to will We We shareholders. both flow

Palmolive you our to I can your has team next our so at in take detail that, And I'll the month, questions. in Colgate with further discussing CAGNY growth. continued confidence plans XXXX forward share look the

Operator

first Stanley.. question comes with Mohsenian The Instructions] Dara Morgan from today [Operator

Dara Mohsenian

market share you obviously forward focus delivered talk Can for QX. the just was healthy care. on to expansion And positioning in as and Care wanted just results full share So you in on year. Oral again front oral look about you strong ahead, your the share

You've got a here. tougher comparison

do about then pet. out how So you share question the XXXX sustainability you on those of as to and similar think look gains a

And Obviously, if sort a driver share share of longer opportunity capacity juxtapose market is pressure industry some those pressure your points, to significant of the business? in can you market industry relative unlocked term that points?

Noel Wallace

Great. Dara, thank you.

particularly volume the the the growth And of fourth encouraged see started regions we're in of end a inflection seen had start the in see quarter volume categories, we towards category. me the little broader let really categories the bit in many we to growth, to of where Care, So negative around world. inflection that an Oral positive on of the the

we that continuing gives place in we're to great that is that that So importantly, category And turn. put and see growth the continue us to XXXX. the going in pricing confidence

bring sales Care, As has you for but strong both really standpoint, you as that mentioned, a likewise, from transferred into that to growth. business, market quarter an Oral share better our back organic and

That some Europe, in If share saw growth, in and the like I regions data Africa, in U.S. scanner as take up improved America, double Eurasia, translated you Latin we digits into oral strong care in were well. particularly quarter. general, the market

will the XXXX well reflection behind the have that pipeline XXXX place, think I well. putting half that advertising of continued continue this we're we a strong as the in in core business increased is strategy innovation in the as business as of that and a back

bigger that our of regions. the upfront see pleasing would the shares we I XX. that, anticipate through will I and in growth strong some we as some with move challenged And volume mentioned markets that, given strong, of to of balance see the be growth would of is the So continued issues caveat will but around world the obviously, market some

by much take our of cross-section If and categories, strong volume that But our a quarters was all Latin Oral strong of that of quite divisions. frankly, X particularly you of improving growth all see America, across Care. volume you driven very

we're So well positioned again, think that. on I

little Let and me we're about doing market there's what strategy is in we're working being brand why context the bit for marketplace Colgate talk important and some doing what think for pet about well. the talked is the I because different to the world. penetrated a most We as our

low know also that Hill's We is penetration.

in execute continue order will a differentiated on our So continue we on to strategies that Hill's growth of accelerate to series to business.

more we're to reach, out get ensure take a advertising We is to want single-digit with Reach, penetration conversion. the in X I aspects we on awareness the reflection if putting low think place and message for the obviously, strong Hill's, that about So that Hill's. of to the that strategy consistently to the awareness science ensure of time effectiveness is spending the well through it. that reach TV a understood. awareness Hence, digital the more spending, our superior we're of of of quarters. getting on We're through the drive lot spending

to critical endorsement the behind new communication of our that We're and that science a to continue have brand we our accelerate using clinical and the leader obviously, professional importantly, opinion bets is success and strong nutrition, with theoretically, quarter lot I mentioned, call, of we about therapeutic as but therapeutic should nonusers third nutrition. think, XX% using using category, the a I be the on of as conversion, consumers the are in think a key

down hence, continue bit suffered. in quarter the dry. I wet trade on drive have that you're seeing the third treats dynamics opportunity share. to So a to call, little a of of category into from mentioned lot The

environments, environments, specialty, Now grow back look step dollars. means our which we're pet at not principal across our softness those and category partners immune neighborhood you but retail growing the nicely we're if category to share helping take retail of we're a all pet,

in U.S., biggest our Penetration largest was up market. roughly XX% the and

category a the pleased little right strategies there. softer, Yes, we continue and to the in accelerate with place So is strategies have but we're progress very growth. to differentiated have the we

Operator

with comes Bank The America. of next question Spillane from Bryan

Bryan Spillane

and Stan, Argentina, Maybe this both think maybe was the I through related there other that line. for question a to write-down expense ran just Noel

from on who little America. of week, currency right, back, give Latin kind So recur. be had this much It's this we've I a how us several given and since the And even approach a of devaluation. maybe, may that heard stepping how crisis bit in of rethinking kind Argentina, other could we've companies been more they just while, think color that you Noel, if may

thinking So know, don't I it from Noel, Argentina term, be maybe perspective how about your accounting just stand? just And then, should longer we perspective, thinking both short about term. you're how

Noel Wallace

Okay. Great. you. thank Bryan,

go a close of understand me in down with little I Let talk for to operate it's I answer, inflationary audience in to environments. years. to important We've apologize extended think hyper an these been in how but again Argentina, we the and Argentina XXX history bit

income the to devaluations the balance we statement extraordinarily to understands sheet an hyperinflationary sheet, that have how the capable understands We prevent understands manage accounting, forward. team move balance management further on as how and

and this think the experience one of And that's which dealing We as to volatility. last just I a years reflection years devaluation XXXX with XXXX, well. had level major go the was can XXXX, back country in of of

manage accustomed very has we're Argentina, potential market we're doing certainly So volatility to out. ensuring the a like to and played everything experience in that

Argentina. to continued invest term long the always, have We in for always

We on have manufacturing ground. the

access ability into seen in some have business given terms dollars, years flexibility country the on as dollars. over the good import we've the We product have to now relationships the limitations our access to that ability of in importantly, to of But we well. the

volatility forward. control So news as we're flip we're the have price to moving attuned to bit, I not settled side, would and going seemed very on of those see to that good much a the say, been

in bring environment order take to some consumer we of in an So operate to significant where can and transaction. the to pricing the continue offset we value

as than sure We'll some ultimately, get more and to the the market, flow into take Now margin we on will profit that through through will ultimately the we of pricing see the in quarters, the we time make that to not the immune line unfold we're go next line. P&L. couple devaluation. But

But environment there in overall, there going and will on feel control deal experienced what's which to got be continued want volatility. good team, economic they for the thank Argentina, incredible diligence we've of real their with that notwithstanding in pretty how I

income let about more closely with talk a to a So me Stan chance bit give statement. we're how that, the little managing

Stanley Sutula

Bryan, up Thanks, left pick on and start let me Noel the team. Noel. off where And

and Fernando, work in CFO the Latin or Jose America. have Finance he So I But example, was in is XXXX. a that as gentleman also Director he for we the CFO my with, Argentina an

with have experience. to market itself approach that a I very proactive think of And we So manifests depth a conditions.

So market and I on then proactive of about conditions more very that. a about what we regular talk importantly, nature and do the changing basis he

time. at hyperinflationary where term. necessary actions for in the take look a So they've operated we environment long They very a long the

impact the see line operate environment, the other So hyperinflationary the it of not it for that we appropriately, do was account expense of majority while other devaluation we and you income, item.

expansion, there dealing improved other overall we in our it We the We it We But margin job and expansion think done with items and our nice a proactively cash at productivity. so there. dealt flow has very team delivered So profit I are that. looking decisively. delivered numbers. with

on mentioned you basis. a So go-forward

you actions deval, gets going when continue forward. smaller, those sheet balance take your Obviously, to we'll

have We growing business a there.

to So impact results major going forward, I Argentina. would from not a anticipate our

Operator

The next JPMorgan. comes question Teixeira Andrea from with

Andrea Teixeira

down marketing advertising you was dialed you elaborated the promotional normalizing had in and little bit about the past, mentioned are you talk said -- U.S. a capabilities just wondering increased investments, reinvesting in you advertising seeing recently and I that a and if environment promotional you that can you you're also more

and new on also how the the the if Middle Can you're you you chain leadership about the learnings in panic. comment you And talk category of promotional changes now levels separately, the positioning light the stand supply the in that are? bit how from a and implemented with East right and you how disruptions can

Noel Wallace

Great.

our couple come promotional and role. operating through quite great seen objectives, I'll innovation. we've fact and and last Luciano work of been for ability And and exceed P&L. into the to done to some accelerated terrific. The to profit me bit years, years a through little our we that X and have the over meaningfully great has the add of back build let And context advertising advertising the which grown continued brands flow is that the the as new strategy great obviously has of last X that obviously about deliver So take guidance the on piece, consistent come and communication you've our against he's despite

our you clearly just health be P&L a going for the ability strategy. sense to our that will But that fund continue of forward, today and gives the and investment to

on level don't focused frequency the to both Now and level. likewise, with of us be not efficiency a we it that digital that ROI the linear you by associated I the and discussion where and talk about flexibility And the assure goes gives can spend reach very spend. at TV our there's

So P&L we're more efficiency the as focused through our accelerate very, ability we to very very, drive on advertising. the

comments, And as I XX% anticipate advertising the into environment constructive prepared levels. the right pre-COVID we XX% in it's said is the of to about we to say would XXXX. continue now. very Promotional accelerate to

as be in of the much geographies prudent too where have markets of in select thoughtful come more on taken So as focused markets. it's we very be second I've of calls in we and promotions increasing down. led pricing -- and and third a may some little our We that will that bit It's will the mentioned, quarter some those certain moderated. cadence in selective we

very constructive. through accelerated our obviously objective environment But overall, healthy drive the volume And advertising growth the is promotional and to seems line. category

has the driving over thinking the chain, Luciano of that, a optimization. about increasing really our couple capacity, and A at you automation good network of on our through the transformation On years, Hill's expenditure saw and last was lot come supply capital analytics of and data line. lot of in and particularly that focus bringing ideas continued

savings level. with efficiency as moderate spending and allocated analytics and our and on the will much to move aggressive using supply efficiency getting and very case field data digitizing more chain towards That the our and forward we optimize optimizing network very being

optimization the team done that has taking group further forward. us job extraordinary with and overall, So getting an for just where moving he's ready pleased

Stanley Sutula

And Andrea, Sea your last Red pick around comment I'll on just issues in the out up the the shipping. and

we stable, proactive rest looking planning XXXX. And issues also longer lead methods remained the on don't see where So than there so chain lead the alternate has supply of we anticipated available, planned that, have the but time been at we've for times for appropriately disruption.

Operator

with Citi. comes The question Falorni from next Filippo

Filippo Falorni

So Noel, in private high the going line results label, strong top excluding back single-digit growth, quarter. to discontinuation, very Health, clearly, the

'XX, environment the business. about a cultural at on also and food. business margin can for Are then us think you like volume of the give you seeing you any side evolving the in how that saw in Hill's line, significant the pretty As pet XXXX. protein the and you a And see for cost sense headwinds pricing moderation you

Noel Wallace

settle second aggressive in XXXX. To of as pricing products. good and to inflation moderate, in to we is Obviously, We we've the roughly X we've price X which your had of as see to more balanced pricing volume pricing that we we've where quarters over the see we get question, anticipate to had move of quarters seen into time, markets, agricultural take offset back. lot will a we do volume beginning your which, out come the see prices part ag that

half will anticipate move of earlier that return will really category we'll one back the XXXX, drive I moderate we this continue we as through we that and penetration and But to into is compete XXXX. a to as is the we've and to obviously definitely pricing shared remember, where that vision But seen move moderate, prolonged which in our advertising. with number strong to see household support continuing successful you ability we likewise,

last cost. margin the as of that again, see And in still of balanced the growth the as We're more inflationary move we'll had half that we a through some we line, overall, on XXXX. So year. mentioned I we strong move first more through lapping as environments moderating

we we'll move that we've stay, half more the year back in through quarter, this the pricing the but to of in volumes come half the the see early back as start meaningfully. of back will So taken and that year

Operator

from with The Callum next Bernstein. question comes Elliott

Callum Elliott

the you that you more and R&D, investments thinking big think Really versus P&L. good some are is, uptick spend be? sit CapEx, about success to the need now capability investment brand Where My see to where and outside talk year buckets guys of is the in today the performance some having in spending this of brand question advertising I'm can competitive on of you the other and infrastructure growth. you

in these And spend relative buckets what's importance view? your the of nonbrand

Noel Wallace

we've that and well positioning ourselves at in obviously ensuring around importantly, a point our out, short the the we're Yes, other because optimizing side. developing they in in capabilities talent, transformation, in lot areas, Callum, the investing talked digital a on win of that, bringing our training specifically as And talent term. be succeed consistently term, question good forefront more that agency lot have that the and been to about but the But that would talent, a advertising investment. long you has

So the infrastructure setting the spend and and building the required capabilities effectiveness ultimately of and do architecture do to the up ultimately of ourselves it for drive that's part to data important to over term. an that continue better our consistently long

going of lot as investment well. a that So in space

side, On we've terms a had, capital on increased the spending of lot the in capital side capacity. of obviously,

see earlier, that through lot and to start facilities. going mentioned more I As optimization to to shift we're projects moving manufacturing our savings a

to to for we earlier, consistent drive for mentioned transformation growth earnings data allow think and these I investments add that play earlier. setting overall, As to continue the term our talked to are infrastructure we that will us architecture about our all out that that? up long and so anything Stan, data

Stanley Sutula

the doesn't key to you balance the reflect say most or thing high-growth Callum, sheet, the the potential. those with it is the here one or areas absolute statement and areas jobs the face to look of only the of our reallocate we I'd at resources is income numbers, when allocate

reallocation of and is digital that [ dollars Hannah While human all supports and us resources, to enhance data that capacity underneath may those for absolute that's and what capabilities. ] not line analytics the and whether show or covers, in the it's on

So to to the lots resource of those under key work drive areas. covers

Noel Wallace

is giving significantly, to pleasingly And in is the how cash mentioned is to have ability the tied and your we the right? cash I'd a business, saw very us up that flexibility strong more and indirectly The the in question, the you flow invest flow, as across lot quarter year.

Operator

The from Deutsche Steve next Powers comes with Bank. question

Stephen Robert Powers

assuming and on as It get then ask in the quarter. in I'm year. also, obviously very quarter first wanted to expansion this how Or But we the fourth look done is some made? margin? you strong sequential weighted is watermark? of at gross Is drivers perspective, margin. just year-over-year about progress you've sequentially, the from I perspective should a a the quarter heavily the expect 'XX. about the part here, we work to Maybe that think to a gross there progress But can was that be 'XX, high

Noel Wallace

Yes.

line I'll line, let Stan questions. I couple the drivers me big Let cost pricing, us. a foreign I the think of in top think think is that for cost and obviously exchange Obviously, answer

job very So gross done a we've strong the quarters. a aggressive with been in pricing been The big terrific into over margin part that has XXXX. last expansion we've delivering the X of

Yes, more balanced forward. move we pricing will be as

and impact that there. than lesser would think, we inflationary, be and move anticipate continue seen [ you will ] benign as be So raw gross materials more a to, far the moderation through in a I clearly the we've place, but there's profit will

that. a So to give ultimately, to opportunity construct little Stan more for me turn let With hopefully, you an to it that, us. bit over

Stanley Sutula

categories improvement progress with deal So productivity the the across broad helped we situation by profit with. base had We offset all we're driven a commodity pleased that first, of XXXX. on innovation, sequential gross to that had that very through

about think you a QX. coming to impact items are forward, timing, QX that of the off number QX, going always there of as Now

bit of Chinese rolls price new of And worldwide, where of new some timing roll and from of incremental this that Year, like year, events when couple there's with little Argentina, occurs New timing a ones the through some of a through, XXXX and price. this

kind but that, not will we levels, we the as at go obviously, through the of So same year, expect as expand, XXXX. that

to on So margin help year. the improvement pricing that, will line are and predominant volume pricing us drive go driver that the and will as through working top The of productivity. change the focused productivity balance teams through being the the we from

Noel Wallace

a Yes. I of take on to at that there transaction be the would underscore will pricing but as DVA. line sequential will simply Argentina margin impact take that through in while to quarter, just the the we recover impact flow will a the

Operator

with ahead. question Please next Peter Grom UBS. from The comes go

Peter Grom

category volume that wanted ask I 'XX about looking unpack versus somewhat how really to that does on specifically are growth. straight function up share America the the performance quarter, X performance? that specifically? just in Latin X% out is much of growth comps of easy, maybe still Can a how your America growth but And view quarters growth recognize So is of Latin to really, you volume inform this I impressive. And

Noel Wallace

I Thanks. on second We third talked and about call. it, think, the

quarter in to call Latin then the the America our and strength of our and pricing have volume the of categories. lead ability business seeing ultimately, Third to we history return consistent

the I seen from And category what's level X talk positively all we in categories is the so great standpoint. of a inflect if at compete, category first, which we've

And obviously growing us quite volume growth volume for quarters, side, business. share on good considerably last generating which our the is the you've seen X

see to have sure we're move pretty balanced on to pleased categories for there. we're going now, based currency the as through So pricing year. take that inflecting We'll the overall growth the we're continue right performance confident some very forward. see where a with And we we to

in these markets, and that's expect But volume as we're what to we've the before, back come exactly indicated seeing. would we

growth really drill markets, Mexico of particularly volume our double-digit Brazil Brazil down double-digit both for and -- you growth and Mexico, strong If as markets for strong for to quarter some well. for biggest those with and

the putting America strategy getting categories drive that recover the market across volume the accelerated indication in strong business. all the again, in and helping likewise points, is in in good we to of share which innovation advertising, Latin quarter, price So a that clear fourth

Operator

Modi Nik with Next Markets. question Capital RBC from comes

Nik Modi

material Just packaging up maybe wanted on follow inflation. the raw to

I and products. around you wanted get some elements those specialty context cited exactly some of Just just what that are. some more perspective to

Noel Wallace

Sure.

and more can Stan throw to me there. that Let one a give you little context he bit

Stanley Sutula

prior the material don't expect years, Unlike a we Sure. X impact here.

there see expect every things year, modest in are fish significantly. inflation. that areas has like But some So and modest new we XXXX some this down. are But and increased oil go inflation we like up ones year overall, there

off commodities they're And highs, levels. so versus their overall still elevated of are while pre-COVID

And after we not raw through materials of we be expect only that And as that go might say bit moving benefit our little but a is thing this, in favor, I'd dramatically. there the are one component.

with transport So the program, deal drive costs, conversion costs, these for XXXX. and all we our deal through we across confident margin with productivity and and we're we Growth why logistics areas on Funding expansion that's

Nik Modi

question. if Great. Filippo's could I on follow And just Stan, up

asking think I it he Hill. to was as relates proteins on

you protein? ag but just on cited costs, maybe comment So

Stanley Sutula

point the time, Hill's impact increased to basis seeing in least year-on-year. at Pleasingly, at on not in total current we're an Yes. an

don't So for big see as commodities well we look proteins, XXXX stabilized in of total into for ag heading a based bit we a as as Hill's. headwind around Hills here kind on has

that's us And drive flow-through to margin we and price portfolio. innovation will allow as Hill's on because important of expand modest levels to the continue the on that productivity with

Operator

next with The Chris Fargo. comes from Wells Carey question

Christopher Carey

down to and productivity about maybe regional to I the level. ask So go wanted

our going I years. this XX the in back anyway. was model productivity think best roughly It's

rate And this higher that we any Or think quarter, slightly something about about just that anything is being forward build there And here? run at a productivity so go are forward. talking maybe is or we about productivity? continues muscle this abnormal can to pull

the best in the And better see seeing then we've productivity to starting just in costs some to just this easing there to time. quarter? Was are the efficiency connected seen North you America benefit business. in outsized that, some we're the any and margin was relative stabilization Or

Noel Wallace

us Thanks, years quite the Chris. funding with to obviously growth accelerate last to of basket the allowed Yes. that higher of over our growth. and bit the incredible all generate we've commodity have bulk of across seen that, we've had funding a Yes, X.X obviously higher the inflation the cost little to the frankly. Obviously,

earlier, to mentioned facilities more our the plants funding projects we utilize bit drive time a allowed the up more do. the historically growth I efficiency had in had little not that As a us in lot the XXXX ability of to manufacturing and likewise growth our to to that has of funding to step

of So a and we've culture around parallel, think I symptomatic in bit likewise with and global place at the Colgate we year we that in parts the allowed strong growth. has obviously be generate as overall. that, use wouldn't structurally, a There funding of costs forward. I to us going will in better we of have be like for a a say the in the place our funding that the it benchmark contraction it will productivity discipline that growth lot opportunity we're the but moving to put but on feel ingrained initiative the

of provided the the that slightly the towards that we earlier guidance initiative. execute and GPI we've range to line managed high end Structurally, in on

to in the Pricing talked we we're generate through Stan it's growth and growth place. continue order like to P&L strong the feel margin so that the will about. funding generate the we good that moderate, So a important in

Operator

Raymond comes question James. next Olivia with Tong from The

Olivia Tong Cheang

of X% begins to in growth off of wanted about fiscal QX. the bit a is some also about cadence guide to the top pricing The sort X%. at year top contribution line line, volume just very a perhaps versus I growth X% second Can little obviously, coming half, half perspective sort lap? provide first for to thinking you the you the ask impressive of

strong QX, that mid- about high of That, the obviously, on 'XX similarly then in deceleration XXXX. a digits. course, in range very single to talking for And EPS, implies growth potential

perhaps the happen in the to terms incorporate of built into what about talk get to just the So high to what has incremental you an end conservatism and guide? low and

Noel Wallace

Olivia. Thanks,

guidance And So my forward. to range deliver our in front well compounded provided. certainly as growth in believe are I the positioned we we in consistent that's moving we comments, earnings that said reflected

for good a and strong I P&L ourselves allowed the in of 'XX sheet And to importantly, have into up balance We 'XX. most continued has flexibility think success. momentum us the out the coming and heading set

the As that, see be cadence itself we volume lap we bulk overall change we we'll sure see that pricing of we've to the higher look and had down as will of through the rebalance will in the at back categories. the the that balance XXXX, come

with talked on increased our and have. driving market ultimately, household and we share I about position the penetration advertising As earlier the that focus

So good a we position. in we're think

Turkey feel will still and growth tougher we'll get as we you pricing. Most some flow inflationary back pricing the growth markets, balance and volume we'll will have the of We've year. in come about, we offer the some Nigeria but Comps through. Recognize throughout drive will see the obviously, got pricing of through. that XXXX we'll be that Argentina, say, we flow balanced that some see talked

to How pricing a bit see much certain are new for take back We select definitely I balanced as we but we're markets. more through going unfolds But see year. better to shall in this balance, move growth a we're as that upfront. going mentioned planning of the we overall, of half little ultimately

Operator

The with from next comes Gajrawala Kaumil question Jefferies.

Kaumil Gajrawala

state market us just starting China, you specifically? getting maybe then and into could business the a kind maybe of in play give of Everybody with your

Noel Wallace

say well and the a throughout China. far consistently In slowdown real feel earnings Sure. China, Greater I we we've very that respect that not season slowdown so the very, China, you've will we're that immune of to think, across heard performed in to I Thank Kaumil. there's out you, it, some numbers with

seen and we skin time well. back. fundamentals was that therefore, those a commensurate decline in take XXXX acute will decline more for move Long as the and And through on down health the very a come as intact. think that we've low much we bigger some category mid-single to saw Our markets it to markets. Clearly, market our business in with digits remain those the declines the I in roughly categories business side, term,

but Obviously, the to to a continues lot see you've on and into business of Hazel. has market, think the we the thoughtful us build pipeline the investment allocations more in got strong of think levels to seen positioned. invest inventory price until for about We that impact more. well that that we the prudent we through we invite innovation across consumption side. consumption. now a move and we've will but trade stimulus China we shall our money, see talked shipping back year, Holly next the some on and the closely But come going Colgate as categories we're on and read, The and we're structure increase be back to consumers as We the share we've

a long term. be we there, short But market are the and but good we thoughtful to the term, want in feel dynamics

Operator

Lauren Lieberman question next from The Barclays. with comes

Lauren Lieberman

out great volumes just inflect Oral soap growth positive hand but in soap, Great. it On in cleaners. not you quarter, this and see Care, and bar North to called also America, was a liquid

So lot things I to know there's a performance. of contribute kind of that better that

wondering You business little across of for plans talking spend if balanced a was any you and the But mentioned 'XX. bit promotions. more innovation about time

if And could you to you and of maybe also dish have stabilize regain plans that bit talk about hand kind plans in little any share business? and a around may

Noel Wallace

XXXX. The in advertising is we America. innovation obviously, to more businesses thoughtful and businesses. in the we've that North acceleration can But I all our more strategic pipeline much pipeline that across specifically I a well as in have of and got can't that our support strong a balanced we of will really talk say,

I business. that's that reinjected really strong reflection back the into think operating profit growth of we've a the

better support had been had that the So we to categories declining some been in of we're over like place -- years. advertising feel the in a that much

pricing a to moderate in drive the a will continue the pipeline got the market we good growth move So strong considerably categories we've And place we as XXXX. across share. in ensure that to innovation through we volume feel reflect the on Obviously, order to quite we're continued in side. U.S.

I've we it as aspect balanced more The of make a talked about, we execute and promotions, very, cadence of will very is, thoughtfully. other sure those

We in of accounts have no numbers historical quite some there, feel back select on country to parts the to aggressive. but seen opportunities in we've in we've we where got competition order accelerate intentions select be going the

bode with the of Really that the of business. which the the P&L.. happy back put Really health long-term that position. health P&L, we advertising well happy the good So will for with in

Operator

Mark The question next comes with Stifel. Astrachan from

Mark Astrachan

for on North America. questions One, X me.

And little and and year. there weaker markets the performance? a level? is increased XQ better in advertising North volume between advertising tops, the spend right is share global market So for the in much for correlation obviously How bit America U.S. a

right whatever than it Or expanding is potentially retailer that point? of the R&D, Hill's product you the weakness channel, it terms do think about to given has in And it you the more that on made there it's other whether to areas. this there. in curious specialty then business, at all sold, pet where about Is at think distribution is your mix

Noel Wallace

Thanks.

of strategic we broadness choice the pricing in America. trying has and us choice obviously across to the first. by, a middle our America in to the accelerate more in around that North get needed allowed North was balanced So P&L enabled right A took business the the strategic health P&L much We think, the as investment that America world particularly of we're made. I that we Clearly, to get investment the more market. North shape,

we've continue So anticipate we'll levels. future. our this success consumption. vital long-term pipeline. And overall that which term, of very seen a the our strong short coming our through health across business, This increase for the market investment is we is we to benefits in a We the to the innovation very, for have not be for believe that

Nielsen X Some tracked a our little the multiple channels. channels, X track channels to at nontrack softness I'll say the that are growing in of

its the need in sales proving we the that entirety the marketplace. investment grow is So overall we in consumption and feel that to

we're believe we pet think continues we clearly And short, unique is the amongst premium that. Science compete. a specialty. Hill's nutrition we're in So that segment channels the a our On is good side. that drives we in position to product differentiated grow, focus where long the story particularly for comment, your

mentioned be to distribution and brand have the expand those and in would have require grow. we're We unique channels we we as significant that plans no We the upside in. to have believe policies that continues distribution mentioned I've to earlier very continue, that in in drug feel earlier, us food the channels deteriorate And to mass. the we brand penetration I that

you a our know, the as of expanding place, U.S. is the in distribution. intentions business said, bulk no So being in That on done good

part sure very expansion core we that on market the the the the Hill's business because about be business, sure for will vet of business. model would becomes get strategy profitability selective a We expansion drive that right, making making long-term sustainable

we'll markets for the the as world. so in continue increase needed that business we And health expansion of look and around the to opportunities

Operator

Robert ISI. next Evercore with Ottenstein from question The comes

Robert Ottenstein

for your your you're can was so A lot are? we very market are perhaps opportunities of talk Great. market seeing there, and increasingly maybe and share review the position India that you bit. what wondering Noel, little if about a see I about if to trends, talk companies the more excited vibrant plans it

And housecleaning value-added was impact a on and other item for some then Stan. sales of a asset just there some kind looked item and tax a there $X.XX It there offsets the but other were income, on like income refund. a

could kind let what's better you on If understand going us exactly just of there.

Noel Wallace

Yes. Thanks, Rob.

better well organic, across strong the India. return rural in say this which market results X% see vitality bode continued and the very segment, would segment, for that continued strong the So I as the We'll likewise week, move. on India, the volume to very volume the will results remain rule board, pricing of the we saw bullish sequentially you market. and in excited we

As we look forward.

really details, which core lot strategy. of businesses. in that make our to The is excited points that market India, particularly be executed. to the continue see obviously doing added and on finding we aspect, investment an a won't innovation job we The and exceptional into some to strong distribution team plan specific sure for get capitalize we're around other delivered I have

see like us we'd year in and another strong ultimately good today XXXX. business and results India on bullish setting for So their up sequentially right to where

Stanley Sutula

me on Rob, other second and questionnaire up income, expense. pick let your other

talked up the of number devaluation that impact, and from And is made it. of earlier, not of year. items, we but this Argentina an year As a both is last majority certainly

there, some have also We onetime and year. this some start-up in items last year costs from

that's kind in onetime of continue next I a say And you is that That's at What events new to into run think would nature. going not rate. as should these not about level.

you So these as year. go the change through

Operator

The with next comes question from Redburn Edward Lewis Atlantic.

Edward Lewis

Yes.

Europe. on talk to wanted Just

of quarter. back, XXXX Another or this X.X% XXXX. think looking strong I quarter pricing X.X% it's in And to

new the more part of about we the kind So guess, kind just sort doing you're because continue to story how pricing really coming been in a of should interested Is attitude big Europe? in general pricing past, over hear hasn't consistently, be of in I here thinking expect of Europe. out this a pricing of to

Noel Wallace

or tremendous to Europe We and more question. and have pricing learned pricing to with over Good significant a a Ed. in drive closely I Thanks, marketplace. work take Clearly, ways But partners quarters, we've confidence. the which on Yes. categories. inflation last the their X really ultimately think teams value certainly retail more find to with think X in exited helped XX amount our our

P&L drive in more to value us allowed into but question, our view relaunching balanced in by declines real and get is the that the inflation think Now a accelerate there's innovation categories brands. volume back moving XXXX, and have pricing of we'll much our really no good I some stories

continues be Bank heard Deutsche and talked theme. Jean-Luc You a consistent I about think that Conference, to at that

it's tools got accelerate to move So saying going to ways growth a as there, pricing forward the and lot vehicle not a in and we therefore, get the the to learning growth to but margin to more challenge is we we've find of Europe, be in believe business our category continue

Operator

remarks. concludes Chairman, CEO, the This call. call of Colgate's and would President to to any closing portion for return Q&A our like the Wallace, Noel now I

Noel Wallace

that particularly have to and and the dedication to all see joining continue deliver value Well, XXXX we around all call of employees let strong consistent advance results is deliver deliver thanks, down our plans We the to the growth And thank hope strategies their everyone. incredible work the for to for this me results these compounded for Thanks, to in Colgate profitable agree in in going the drive everyone, them We'll there. place morning. hard they're XXXX. in you world for you in Florida. thank and stakeholders

Operator

for concluded. you today's has Thank call. now The attending conference

disconnect. now may You

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