Colgate-Palmolive Company (CL) investor relations material

Strategic direction and momentum

• Entering the 2030 plan with strong momentum from the 2025 strategy, focusing on scaling AI, analytics, and revenue growth management capabilities across the organization.

• Emphasis on innovation and perfecting capabilities developed over the past five years, moving from catch-up to leadership in key areas.

• Investment strategies are more selective, with a focus on emerging markets where category growth outpaces developed markets.

• Key metrics for success include household penetration, market share, top- and bottom-line sales growth, and cash flow.

• Durable, consistent growth is the central organizational mantra, with innovation expected to drive category inflection.

Regional performance and market dynamics

• Latin America showed strong growth, especially in Brazil and Mexico, with balanced price and volume gains and innovation across categories.

• Asia delivered solid results, led by India and China, with premium innovation and strong online execution; China’s business is now a growth accelerator.

• North America faced challenges with inventory reductions and market share erosion, particularly in premium segments, prompting a strategic reset and new leadership.

• Couponing and promotional tactics are being selectively adjusted in North America to remain competitive, without broad price reductions.

• Volume growth is expected to accelerate in the second half as private label headwinds subside and innovation and advertising investments take effect.

Innovation, premiumization, and organizational change

• Premiumization is a key growth lever, especially in markets with high per capita consumption, while increasing penetration remains important in others.

• North America’s strategy includes holistic premiumization across categories, stepped-up innovation, and integration of commercial and marketing teams.

• Resource reallocation from the Strategic Growth and Productivity Program (SGPP) is funding innovation and advanced analytics, especially in North America.

• Brand portfolio flexibility allows for market-specific deployment of brands like elmex and Meridol, based on consumer and retail fit.

• Premium innovation is now prioritized after stabilizing the core business, with targeted social media and personalization to drive trade-up.