Colgate-Palmolive (CL) 26 Jul 242024 Q2 Earnings call transcript

Company Profile

Participants

John Faucher	executive
Noel Wallace	executive
Peter Grom	analyst
Dara Mohsenian	analyst
Filippo Falorni	analyst
Andrea Teixeira	analyst
Robert Moskow	analyst
Stanley Sutula	executive
Bonnie Herzog	analyst
Christopher Carey	analyst
Olivia Tong Cheang	analyst
Stephen Robert Powers	analyst
Bryan Spillane	analyst
Robert Ottenstein	analyst
Lauren Lieberman	analyst
Mark Astrachan	analyst

Call transcript

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Operator

Good morning. Welcome to today's Colgate-Palmolive Second Quarter 2024 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 Presidents, M&A, John Faucher.

John Faucher

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

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

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

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

Noel Wallace

I and and us strong results. John, thanks to in forward to this for QX your morning, our joining regards taking Thanks, questions look

growth. our the growth, all growth, compounded deliver to have talked and with organic we categories, X volume about As consistent pricing all of of importance part and balanced ambition driving divisions, of earnings sales X combination a

in marketing of scaled brand innovation revamped all our penetration. and driving and model, leveraged tiers, our spend, have health invested across exciting We the is strength capabilities global new which organization, across household price

years. over given the is have few we important taken particularly This the pricing past

volume this & highlight both this well strategy. mid-single-digit some growth early quarter, this Our at Hawley from including Hazel timed. Hill's And is success and return growth to

still the strong to while that gross profit brands compelling drive the incremental are margins bottom We will and growth. volume investment growth capabilities in delivering line expanding, funds gross which are as returning

as activities of we'll discussing further the AI, be tools, spending. we return to more optimize tracking increased using on topic these also including time. data and a analytics our look over We're effectiveness to is This

and penetration combine this With we combination We place consistent line continued of top have operating with growth. in benefits our balanced the the to TSR. revenue into per and management that of productivity believe drive turn discipline success strategy, the increased growth. to leverage, growth plans of fund dividends cash positioned compounded and with that share earnings flow cost strong this share well consistent drive leaves investment, top-tier we to repurchases, us Along to

the execute with results recent we that, And Our show against up questions. to to strength I'll effectiveness and open this strategy. it continue as

Operator

[Operator Instructions] The first Peter question Grom with comes from UBS.

Peter Grom

we've Thank what and good seen. ahead, to a today. momentum shares an market perspective, in seems look the do this from you changes growth you from working, made Noel, you, and build it drives the volume the us deeper hoping give here? and of can penetration several just past Obviously, sustain as outsider's given sustain this the over But I household continue to mid-single-digit you years how that levels operator, improvement understanding you've be the could was of confidence everyone. morning, the investment

Noel Wallace

Peter. Thanks, birthday. Yes. all, first happy And of

John Faucher

Happy birthday, Peter.

Peter Grom

guys. Thanks,

Noel Wallace

certainly strong market invest years. in penetration, we've a into category the share. past which P&L strategy, where to to behind that think is really flexibility the the that I let's volume of consistently drive And middle of importantly, communicating been So pretty the over brands. heart get and more lot which getting a few investment place ultimately the growth helping and, we household more performance the And drives have could that's

growth great us advertising us opportunities divisions. was And with international in our growth. pinpoint we categories to exposure allocate of that our giving see obviously, middle the the category all the allowing to of So business, The of see is growth opportunities. it's keeping where that where flexibility areas we our in P&L, all delivered money and across in regions of the and quarter in areas real

to are, important. investment find to ways likewise, that where investment, is continuing very of drive keeping that So effectiveness the levels they

down growth mentioned getting we're before, had as better previous think we I've using far improved drive years. innovation. the better to strategy execution our world. helping other been than it at As and in the And drive certainly tools you and ROI. at that saw CAGNY, really We're of the AI much is That's consistent around

the So strong opportunities sustained, growth world P&L, think we're gross real overall, the in for drive margins around allocating seeing growth, the we compounded the flex forward. of keeping where will areas moving middle and in that consistent

Operator

comes next Dara Mohsenian question Morgan Stanley. The from with

Dara Mohsenian

line to focus volume top on long-term growth on the wanted in here from the and opportunity pricing Hill's side. Just

on First, maybe volume. just

You've added last capacity in a of of couple the lot years.

in You've also a foods, areas still wet of internationally, theory, got you're underpenetrated et lot cetera. in, paws, small

next the is So X And that? as pursue perspective look years, areas we about this volume as in incrementality should X just these more some aggressively? at there how out you think to over we point

very market a CPG pricing, environment should in in In And share higher industry trade pet pricing. over pricing also support you've on general in tough for the increases, that obviously, had strong and theory, But time. a then with down penetration environment business. gains category probably on you're Hill's

recent few in of momentum ability environment take some you years? going So out how your And that looking just in maybe juxtapose about should Can external out compression you marketing would internal strip forward? the pricing the higher longer term sort versus to to recapture terms take of how think over the margin pricing years? you of consistent the pricing we if next

Noel Wallace

to Strong the moment, brand. what advertising and Clearly, we've great of light given the in label, the talk particularly continues particularly investment in we're I'll through frankly. with strength Hill's. put strong across see the pricing come strengthen is pricing historically, a volume a volume, obviously, the the extremely And pricing performance pleased quarter back to about the Dara. and move taken ex that board, of significant into private for Thanks, quite encouraging, but the business which P&L the the we've

inflection in strong margin. seeing the out gross getting think, this what's business and quarter I on of through And leverage obviously move important more And operating real line, reflection, the the is call running the volume is strong margin, the a margin I to P&L. the through think

the strong Market clearly the of shares brand seeing a this advertising brands But global quarter. characterize if delivered the one specialty Hill's investment. stores in back quarter. some the up. we're the again We I were about that And of talked in fastest-growing Penetration clearly, overall the and up. pet we've take awareness step before, of and penetration household business, as low supporting marketplace, low

So we of still think the reflection again, I a upside potential have.

the wet, obviously, area you in, that the execution segment when getting translated SKUs as more better categories. shifting look under-indexed into That's consumers on ramped that in wet, capacity shelf. penetration, we more up stores we're at better growth, And into potential clearly those we've upside in the wet talked as seeing we're about delivering have opportunities, better obviously an we see past, in obviously

think we invest continuing is balance to overall, we're penetration. drive we it, household to want and where So business aggressively the that the of

into of innovation You first that we this moving 'XX pipeline, the see see as couple really that with that year well. half strong and we a in

getting increasing. And advertising them the increased of spend, back is Low margin Getting which invest margins working and where we're allowing business. to penetration, more the gross think, our on we working low the dollars now. the effectively that. flywheel right frankly, we business margins to awareness. the in importantly, effectiveness operating is quite us for We're like So very for gross behind

in globally term, markets. now. International, talked to big we still take see long long about into world. to likewise, around focused right markets we've the opportunities that the expand see brand very the on the we this We're But new term opportunities core

Diet The last more obviously, on this is, we good mix provide to consistent It's Diet. good been we've I'd as business, saw been inflection saw between the due shelf, to of had. more That's expansion us Prescription vet well. and deliberate. Diet and on the diets allowed the the a mix to to quarter. get benefit quarter function in allowed the a Science partly That's professionals We a sustained, that on say of that delivery the Diet us capacity Prescription Prescription

we're with it. pleased So overall,

a now, But see is starting that household a to some show mentioned, here starts will we us. come for -- think softer you soft category as down. as as environment U.S. least for bode economy The at little the right the we well landing, hopefully,

where to pricing little opportunity strength continue take Pricing The necessity do is flattening as environment inflation had good the we've the more come the we we the in more seen which a the leverage given that seen see news Hill's we is to is pricing an excellent on commodity business, volume And on bit moderate have brand. a of of we've that for We'll the as benefit the we get input through us P&L historically. get of We've costs. back. pricing that.

So forward. in feel good position to sustain like moving overall, that a we we're

Operator

The next Citi. Filippo comes question with from Falorni

Filippo Falorni

also I promotional America the business. a return see Great volume environment. to the wanted to but out growth, to about called ask North solid you more

on competitors one, maybe, label. from environment levels. So you're from were more that's then a from levels? going in lower continue a going any year last to And and promotional QX color think a would pricing standpoint, promotional general back also helpful. to promotional comparison Is America, the can you in balance fair cycling for be you North between it in private by half know talk your cycling So QX, volume and the and I categories to about your the normal have

Noel Wallace

less America this back rightfully with expected, expectations, really a as out organic Filippo. volume, North growth come albeit just that in year to the little said Sure. comparisons And more pleasing, was due as moment. than with Thank line which you and a Overall, a you, roughly ago. we commentary, in was prepared point although was in our in to pricing I'll

strong you the second digits. really If quarter, pricing in high single remember,

around was it X%. think I

the year, perhaps retail We talked retailers on the come environment pulled back that year-ago of the second bit in also in didn't some promotions a last impacting saw lower-priced about have the all far to little price. of quarter it quarter fact A where promote the period. one retailers higher-price we of this change particularly too bit in we between mix it may We those some back in the in year, promotions. call

result about the be importance driving penetration, terrific. are a think North what improvement. the more much targeted But value we more volume and utilizing approach that, is the household flat very pleasingly, side, we we're lot share promotional in we're as was but side. that. dollars less which a place a saw on and and But on over-promoting. very Market is numbers America we right thoughtful That trap approach penetration a quarters, household in of without too We considerably America volume is prudent last saw for there good particularly the we effective very right how a encouraging with a that. important to North or X the of now, talked of going far quite feel the I reflects, And great us down that now, in over in up think,

of lift retailers we bit in. some did channel. expect multiples We of look scanner There's non-Nielsen track the little as quarter. we the I higher, track through least lean a promotional year. on our expected continually continue if to move And you to higher a the And Nielsen see data, at at through been more the as but than little coupons, say, continued that balance business bit of outside the

really nicely. the see to quite encouraged delivered. with of We're overall the to quarter the coming how carefully, was pricing pleased context again, back the watch So volume but really, going

Operator

Teixeira question JPMorgan. Andrea comes with next The from

Andrea Teixeira

broader My with peers is short cap calling impressive there. Obviously, what in question been that, Europe. deceleration U.S. the I to some on been momentum have of happening has a that similar But you mean, of nothing your your

the to and are happening this in and So Europe? the able seeing pricing to as be see your back as into end? described, channels there? into you letters well the U.S., some how in wanted the just just, Or sustain the thinking more should promos Europe how shifts soft low negotiated of exit said, and I or you or been the you were And discounters, momentum of your the income and to you affordable you channels -- innovation as as we in if spaces quarter Noel, some you has

Noel Wallace

obviously. Andrea, much the around latter,

across strong tiers have we of -- very breadth we're negotiations. Europe and environments seen we've in retail price think allowed sustained But various what's breadth us, channels. I the particularly deliver in that view, the I some again, And the shift of growth. through pleasing across seen think is to innovation there. innovation that's in the our And

there. pricing encouraging the for strong obviously back particularly took a we balance pricing penetration. that's pricing the But such is in as come market We'll volume reflected between we and volume the down coming some What's P&L particularly year. the pleasing at the obviously was And healthy business. shares of into in household lap see levels last

I at record on toothpaste As the shares levels. said, market high

growth. we and coming mix X I and the elmex think the that brands, effectiveness taking brands. personal seeing the Colgate likewise meridol stride sustained drive market the and sense between right brands into between the we're have care now And getting the the home and in some balance the on and of is innovation care the good promotional of really

half. We'll the of for the our for back the had back we're a to indication now, strong across and well. bode back performance overall, categories going place for in growth a as But good multiple back is market tiers half, in half So well all great sustained coming us right is that share up the set that volume to watch good a price we've it think in we across a Europe.

Operator

The comes TD Robert with Moskow Cowen. from next question

Robert Moskow

as Noel, make us have hotspots And or material you commodity that would the help could of pricing progresses. kind tell so, mentioned like, would to enough it if costs you the actions? sequentially you if is I quantify be? us And was it where any wondering higher year

Noel Wallace

Yes.

we profile of gives given the but we growth. for you inflect think, particularly half. in the are Stan have see positively, to think we're P&L, nothing moving volume pricing -- the more with where the there. me obviously, Let that into least the But particularly But bit the starting details. well the we've me that more let seeing commodities inflationary strong the margin in strategically, productivity give that with business and Stan get have commodity and tremendous back taken back through let at concern, terms us the set we're across We'll get increases, half, some we little strong up a where color much

Stanley Sutula

Noel. Thanks, Yes.

the we first we talked as commodities. So that looking some easing coming material year, we in from what bit quarter, the of see commodity costs saw raw impact we as the about FX. half But do inflation on out, general an we're had a into well was transactional back in as

offset pricing. think we there components dramatically, as that, they pieces growth are ability about large feel unless funding and to see incremental going the So do some are confident the move in that need, of with productivity. here to don't the through, but we those more take our I

these, our should to anticipating In in margin, year-on-year, margin look, addition, our gross half more we on second are similar expect levels even as up be probably that that we QX.

significant locked eye I on at a ahead. in basis. overall, we good at already keep forward a and We've we'll look as QX teams the that, go this. in a of on proportion obviously, it look So think We QX,

of feel So it, positioned. we aware while well pretty we're

Noel Wallace

unknown one the Latin there that exchange, and you've currencies. against last The obviously bit us seen foreign move weeks, Yes. the probably particularly a in X is

So we'll have on But that to we're it. carefully. watch .

Operator

question with next from Jefferies. The comes Gajrawala Kaumil

Excuse Gajrawala, is open. your line me, Mr.

questioner. We'll Okay. next the go to

with Goldman The Bonnie Herzog next Sachs. questioner is

Bonnie Herzog

consumers behavior consumer seeing? your And in if have consumer. for this initiatives that markets, Noel, so, implementing ultimately growth more changes from you've faster if been key drive volume the especially low-income noticeable offer you any hear any I'd to in we're guys to to be what seen curious of value then,

Noel Wallace

Yes.

market penetration that's the growth and, the quite obviously world, think overall, I volume and But growth. around reflected constructive. in the overall, and share likewise, strong constructive

lot have the we're in portfolio. a offerings, that deliberate and that that opportunity strategy environment, to played of and value-oriented those of businesses by we've has disposable out place that our retail in about more relative some for the the we over against think innovating innovation well last couple put looking consumers ensuring that of I making years, that's core sure big our

And we've seen that.

We've little I But been the that half more have right shopping as year. the a the in of watch unusual back but U.S., price nothing we'll constructive. now. bit think, carefully America, has North quite move through of we too seen consumer outside the value to

As little North seen in line I through quite more coming mentioned deal frankly. America, on a nothing earlier, bit we've not in historical numbers, volume but with

strong X last So despite the overall, U.S., X to volume Europe Latin seems growth watchful, seen the pricing. again, really to you've okay. quarters significant over be America,

And so to back Asia which and there. and volume growth, coming encouraging. good specifically, some out again, volume Africa, strong, starting is we're Asia, consumer a India growth Eurasia, pleasingly, good seeing see good of environment

Operator

next Wells Carey Fargo question with comes The Securities. from Chris

Christopher Carey

I the is to to this. specifically I America taking think dimensionalize North in much just bit way the negative wanted that posture. is year-ago X around how there to go guess, just volume versus, back actions you're first, compare and say, the the you offensively? business, a And parts to pricing in of market that quarter, investment a more the

of same just data. guess, your then in out but compare some you volume what quite can the double-digit what and feel growth time, going sustainable remarks, in -- a know toothpaste, we growth in I back number, volume from in is at see this Fabuloso I hand volume have a prepared into soap, which the called in is bit half? think ahead dynamics consumption And I you the perspective,

and we the back see wondering also durable So dynamics as into both in I'm half. timing that if just go you there are QX

Noel Wallace

Yes.

but driven, us in that to quarter in across And with, And the obviously, America categories, will saw the continue we the growth the as terrific. start is third comparisons North favorable for strong we in and good be we toothpaste feel, quarter. largely numbers the which overall. I me all fourth quarter, expect volume Let in guess, it

So volume should continue to well. track

little get most was it of as me comp. Let said, a dimensionalizing a mean, of into I pricing. you bit the

As pulled pricing talked back a recall, QX, in as earlier, you price have we in little in may that And mentioned much quarter. I X% had we specifically, bit promotions the QX second last XX% year. too on we

the this needed need cadence came as very growth. where that year drive had the back volume encouraging, had We of And the helped to. particular retailer, X that to favorable. obviously mentioned I out get back we comparison of we was some strong online we to was So last very, pulled year, which promotion

But relative again, of the think pricing strong XXXX. market be is the a will very year where in we'll with there we the to be more great that that on overall, little I move a And to promotional half that elasticity volume. were the off couponing year, in consistent -- relative the through cadence back the or somewhat see in We're encouraging return pricing put as second what's we quarter bit seeing we to see the a most as obviously promotion. will

Encouraging, gross are we in behind were which back America, the the is of strongly gross North up by And profit to likewise, particularly allowing half encouraged dollars business. to invest the continue move as year. we us percent margin in and that,

Operator

with question The Raymond comes from Olivia next Tong James.

Olivia Tong Cheang

Brazil very your But company that back growth, go price. it a very Latin obviously, total to of very you and be volume, America to Wanted called to out Mexico. strong given strong driver continues strong

consumer you're of seeing? in there, some Any given America? resonating the given of overall those the key how as in about macros Latin is other talk can sense concerns growth markets the well you the as the behaving what countries of incremental So your

Noel Wallace

we're Great. And you, yes, Yes. encouraged. Thank Olivia.

on at businesses, particularly Hill's, up largest XX%. X EBIT, EBIT the really and line. LatAm delivering Hill's up Our both strong XX% quarters, LatAm

that is getting big So for us. growing at level businesses encouraging the

by for all such across volume single And to continues high We mid-single-digit a consistently us. strong. of exception good Organic of of really, Every was country volume in X quarters saw performer LatAm. our digits, obviously, sales LatAm, businesses. strong. volume Brazil, And which in strong This Argentina. really growth was positive which is was be was led growth with growth

Mexico environment. the We'll would rest mentioned, to quarter. that consumer So as Brazil I pretty strongly. overall, seems slowed Care, the carefully. Oral in watch say a quite quite performed bit strong. really good little the strong region to you performance. have a But be of

that. division. shares to in Volume the division, and encouraged we were The points seems the Our first that half the put marketing across basis strong shares so up innovation market likewise be were taking XX across up hold. we're by

move through we think continued set consistent the we're we So back half. up for well growth as

as on in some we the the consumer whitening, would be hold I to pretty and household the penetration. core good terms to seems at side, of that So characterize taking premium some innovation have, good. driving And success of particularly the relaunches seem be environment

and will driver we're us overall, for So encouraged by forward. to growth moving a it continue LatAm believe be great

Operator

Steve next with Bank. The question from comes Powers Deutsche

Stephen Robert Powers

was hoping just middle we of heard full the but in talk travel are more at And discussed. But that? we've down of not just than again, not I question focus at from the in you investors volume #X lower is, it's from the expected, think performance hurting been for it's how North is but for sustainable? coming could strong not as today. and given today. the arguably direction been Noel, I performance others, seen from in as pricing, but pricing about do gross topic Colgate, for broadly P&L is Colgate, margins a have we if really been not competitive set, large heard might about previously that and and faster significant -- reinvestment the is already, I've just guess P&L, It's on your great, And Volumes least pockets. America, pricing for industry where as what the

Noel Wallace

price has growth, Paris, at importance the know back we that continue pricing to growth and doing, revenue that talked on in P&L. that in pack focused balanced, to going getting get and but continue we Well, architecture necessity were Bank about being to we we're it Deutsche growth the volume about, the consistently on in to we've management Yes. talked have of on certainly the the work principles been place, listen, focus market strong I to

environment balanced benign, that obviously, back Now the But as becomes to to going into drive needs to some ways P&L. the exchange the across be we to more transactional obviously we're finding of of foreign pricing inflationary in focused we'll the through very divisions. go see and that half the on pricing some year to we'll think most continue P&L, our see continue

As for And earlier, capabilities consistently talked pricing, volume growth year, fact, from right than a very, us, very encouraging where I But mentioned more dollar ways we in our management that's revenue pricing. find are it growth particularly ways we to strong inflationary optimize to now. about category we're find to towards would seeing this standpoint. that see, less

But pressures some marketplace. that the business. very the the pricing offset And of and strong said, to to context our I to be the very, brands the in quarter in inflationary think X.X% that that in second of need generated to strength talks continues we that the continue of where we saw being our the

we'll good in about quarter. a the given still levels the see So bit we little we be standpoint. of -- FTG, lower feel material second the second But gross where inflation benefit the were where than overall, a are raw pricing in of from we and profit half come

Operator

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

Bryan Spillane

to wanted Grom. happy extend just First, I love Pete. We birthday all to Peter a

and we that for about models, first the a our as 'XX for the and into just the looking half I next using question, we're fill in year of just of of balance go kind guess, into going the Second, thinking we base at year. as kind

for a in bias, driving to right, time started it. Can were a same year, you you I when maybe the So And the balance potential in hadn't earnings sense as to as then, that I this first the the about would good a should back occurred level off you've I about and base give taking we And the upside spend the anything us planned? are that, at then And half, you of first reinvestment the that's you have you money Have a some we're upside be thinking your areas to regards investment reinvest would you've with the second half? growth for of thinking just that in consider you think reinvestment. in guess, base it, year this some of 'XX? got 'XX, but things that as we're identified opportunity scope had to bias? is right, be finally there whether about of spoke think 'XX, a also good and bit the last there half, when

Noel Wallace

on around world. areas gross growth, growth And strong the flexibility going we're with return Bryan. in where very the the flexibility the middle to to Thanks, get consistent continued getting that with advertising margin about the in best that really investment. dollars and we is what us past, spoke the to of the that in Again, us top direct line opportunities with that P&L in affords give the

as culture and for the not we're trying in are increased advertising across at bang organization how we buck we time, of the the spend The in approach And ROI being to advertising. the deliberate terms is that mentioned, over the for increase same getting of improve that ROI more all advertising, very the of terms very, sake of implementing strong. very I've

intention our continue to to penetration those is household continued So we to and investment. And we'll invest particularly continue opportunities we where where around growth opportunities, see for see we real brand return build volume opportunities. on see opportunistically awareness. invest And a

in anything year. of half the So changing this be I think don't back there'll

the drive invest to or consistently about to the behind is top and talked continue we've X X the last business drive quarters. bottom line Our intention to that that over compounding growth

Stanley Sutula

I look, that, mission And ROIC you to for add think track over here, good Bryan, a with a our I if just on are on XX%, to we've think demonstrated back and growth. continue think ROI, we'll EPS pretty good investments look I our compounded those is here, And the forward. we and to we'll see track record record consistent make going where that

Operator

comes next with Ottenstein question The Evercore Robert ISI. from

Robert Ottenstein

follow-up. quick a First,

don't just you would normal Just historical particular on you're to competitive returning So fair that that response? America, be North color expect promotional on any to get or it say that. love kind of levels, given to

is, And in communications? my would of is it think Is and bigger to than I of seeing? Why certain that pay that question us, communications exactly performance performance, you're more case? for perhaps groups pre-COVID And least that, seems it something than that be results, in are and combination up And at then with on to the in your the better your it is consumer, that see levels. fact, consumers, driving how picture innovation part we perhaps past that clear willing true what's terms better perhaps the in making in the maybe is better? more

Noel Wallace

Again, that I promotional constructive. the environment overall is think

we year to mentioned, match get -- simply categories. as a And bit some pricing I back it. have out As too the promotional rebalanced to certainly probably we that little we've lead last importantly, pulled more to, to promotions pulled may in pricing far than

not can't intention Our that be is sustained. on lead cadence category a promotional to the

that leveraging we advertising, we where which need be we So and dollars are. more and consistent where prudent see mindful overall, it's We'll those we continue be feel the on like we or making invest building where where with sustain to sure less we very and to that strong want the we to and the the is innovation continue to gross it pipeline brands have. to focus strong on, margin volume

We're that elmex of innovation, relaunch in on results Total and business. innovation, meridol of where And inflection we're the now side some side seeing premium Latin into operate their great with most obviously, the on I divisions of focus going side the real extend of particularly a across with to premium with some at the our continue whitening, will on business. to premium premium innovations. from great of of America, seeing the If our the clearly, we

real couple that big of of if consumers a innovation that's core making proposition trade the example that focus based And strong value-oriented a difference competitors. up -- had to business great core we'll are versus India, you MaxFresh real points willing with a in strong that's driving sure selling We're idea And our that that. we've on, great on seeing innovation what behind that. and

trying really your our the and the to delivery science and much incorporate messaging that content of We've is brands, the our to we're superiority get more talked about into and messaging, point, the stronger. stronger, to

So overall, be top us continue have making growth. to sustain pricing we all in that innovation pipeline and focused place combination ensuring you strong that on the of to what a the of line it's discussed,

Operator

The from Lieberman Barclays. comes next Lauren with question

Lauren Lieberman

one other years I countries were launching more to kind added meridol bit I beyond if question. those in I know just I few kind that X-brand the of strategy update But Latin channel bit reach, maybe the to premium how you that that a be taken of. that Because a brands ask pharmacy in been in particular, managing how and have on strategy, sight maybe in few of markets? mentioned we've applicable Europe, brands America just premium an in may get of you're lost you that the channel years Europe, more recall last of a elmex the and And about think last ago. you've in wanted

curious that's at Just if all. progressed

Noel Wallace

overall, making what sure done category, were consumer therapeutic the of category, absolutely in side the the unique right, the what particularly where end we the and flex seeing the the are we marketplace back parts But Yes. a historically, really that Thanks, you're of far that needs and of and answer. is not strategy been level the and growth we more to portfolio that we're very come journey we are yes, of Brazil, than capturing which I'll and needed. growing at it's in have launched the deliberate Lauren. to for elmex my us here And our

elmex on growth that using and to capitalize been very meridol, successful. across So has Europe, particularly

multi-benefit of Optic the You as we've unique well and a us as as across environments whitening world, Total that compete well strong combine the consumer. gives that in focus with combination as we offerings the the that on in both had the to retail

be we're we And the going we competitors very We're been elmex what and foremost. and our pharmacy going strategic put are that about growing, space. channel about unique and that for the into. take alone. we and around the is some that, where go of environment to to sake markets to and meridol in disciplined have deliberate been first very it selective we've offering against put world, do retail therapeutic to how in on opportunity's not particularly a is going We're where We've the benefits strong

how where the take take very it around the be going will new we opportunity. around to continue we're selective markets world we on that world, So to that but to we see

across point we're significant by whole right. very on incremental how a where where Colgate seeing I take test franchise and entire growth great that think, meridol we going them. is, been focused those very for The being is Europe to getting brands balance and the has advertise the between market And we're elmex,

feel overall, we good So that. about

focusing profession, of improved behind meridol Professional other of on we of We've the and been the from endorsement deliberate back and professional And those the difference which behind stronger educating brands. the the to really loyalty aspect, to the brands. and elmex that certainly brand the the the point key very the led profession, premiumness about meridol them and the that's was science the on obviously elmex and have going levels the heritage franchises.

success we've significant on share very in franchise. and Colgate the elmex trade. to with brand the we incremental based country. a me to we the expand around had not you LatAm, only, in And The came of decided We LatAm, the Brazil -- brand. it that decided to trade with seen just very of that Lat the pharmacy where had we in Paulo we question Again, Sao in strong back class the pharmacy that on launched growth seeing take were Lauren, let where then class If incremental in pharmacies with quickly. come drive was wanted that a regards that

pharmacist in great brand. the brand with high-end the sure Colgate a offerings had pharmacist to portfolio we making core terms therapeutic the of well of and So that with being combination as elmex offerings for the the

been combination to that us leverage great portfolio. for a it's So

about launching pharmacy, the building only profession, And that and ways in as to think we'll to again, the and the we based the established we're strategy, that proxy we brand around consistent democratize disciplined a and finding a go-to-market very its in brand then But that credentials. is cautious new as as very move as markets But on use world. we that well the marketplace brand through deliberate very seated well ensure potentially do going be to and forward.

Operator

from will Mark question Astrachan last come with The Stifel.

Mark Astrachan

One in in Costco, lower-priced Wanted as growth a number more channels. is couple for see referring you and I shift guess, questions. to driving shift at channels? to legacy now. clarification scanner an on example, what's quarters ask for the and of been a least the the We to the of data guess, the lower-priced tracked I Xx X, channels. it these like North Amazon, is to curious commentary what days growth. the America are the can If not, as those I'm there It's

the driving what's shift channels? those share So into

a in to chain product. volume. And some then the you still space your separately, channel, around that up to unrelatedly, prescription supply have on have buy need sign but Prescription commentary increasing flexibility, Diet, the there says specialty the and in We a of it to started you see pet shelf

the awareness if get rest how business sort could curious that helpful, provide increase And I'm that the guess too. of versus of, shelf, I So prescription would there. it on you the and you of the sells brand terms from just mix of to in works be

Noel Wallace

Mark. Thanks, Yes.

say a huge This terms nothing take inflection shift. in quite I channel. here, retail new frankly. And been, been me Let the think, has it's I wouldn't of

than obviously, nontracked channels there's a tracked value channels. club with the Nielsen offerings. of Nielsen the there, seen And growing some You've the consistently play faster

channels I the pricing without great overall, years. over price at very, the that's ensure obviously, a or value orientation architectures their very couple carefully and think looking the to there's are categories back of that last P&Ls the the to all pack through ways finding value But proposition the the and losing, consumer come

will And seen, I anticipate don't tracked -- the grow continue value their continue we're the and innovation we've be aspect shifts. in past. the be Nielsen forward. Nielsen you've customers on the to those more as consistent encouraged by channels. been earlier, channels. growing with growth where tracked We'll our mentioned the moving strong had I the anything prepared those think, volume that I to to well proposition categories And we've is that to shifts see, share the obviously, encouraging that that, But solid. that, seen as We've suggests offering in We're quite to different we're capitalize continues to trade

past continue us only to Prescription than On Diet about for business. the the Prescription We've Diet, opportunity again, the a Prescription grow great in where talked to opportunity Diet less it with in and benefit therapeutic study that today, the can the using nutrition. pets therapeutic shows, nutrition from me are XX% saying, you've about pets the heard talk while of past, X% our of

that retail on our allowing we're to that have vet with focused have offerings cetera, of sure partners, to pet offerings network our specialty, we the our making the So Tonganoxie increased and and environments as that market. of out professions the veterinary to more our for plethora very those optimize And we bring provide stores, Getting basis et the been us they their consistent has coming to recommendation it. pet neighborhood capacity nicely as to where pet online a recipes and well into specialty owners, for recommend making more on playing pet supply brand. of and quite terrific sure the consistent is we have provide

offering real is and to we that expands make we So increase look benefit to the sure sure the continue ways a for will owner. towards for to that pet Prescription which continue mix making Diet,

Operator

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

Noel Wallace

top Well, bottom today. world, line for the want the efforts all for thank you applaud the Colgate-Palmolive strong deliver exceptional team And and growth. us to joining to just I all around

forward. we capabilities moving stay we're to while strong Importantly, that doing building need we're

to the team. But the a year, work halfway that that's and us, be work remind all done. we're So only as have I of always, through lot we terrific by a still

and the everyone, So appreciate thanks, discussion this great morning.

Operator

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

disconnect. now may You

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