Colgate-Palmolive Company (CL) UBS Global Consumer and Retail Conference summary

Strategic direction and evolution

• The 2030 strategy builds on the 2025 plan, emphasizing evolution over revolution and leveraging proven growth drivers while aiming for more aspirational targets.

• Five pillars guide the new strategy: global brand strength, scaling digital/data/AI, impactful innovation (especially premium), omni-channel demand generation, and leveraging a strong corporate culture.

• Innovation is central, with a focus on premium products and a new process that integrates AI, digital twins, and centralized strategy to accelerate global scaling.

• Organizational changes aim to create a more flexible, faster structure, integrating AI for productivity and growth, and adapting to omni-channel realities.

• The company is better prepared for market challenges due to a growth mindset, improved P&L flexibility, and a culture focused on adaptability and investment.

Innovation, AI, and digital transformation

• Innovation now emphasizes premiumization and faster scaling, with AI used for product concept development, digital twins for testing, and rapid global rollouts.

• Clean rooms and promo AI tools are being scaled to drive higher ROI on advertising and trade spending, leveraging first-, second-, and third-party data.

• Advertising spend is increasingly data-driven, with higher ROI enabling greater reinvestment while maintaining margin expansion.

• The company is integrating digital, analytics, and AI capabilities across divisions, with Hill's and Colgate China leading in digital transformation.

Regional and category performance

• Europe is stable with slightly positive pricing and volume, while emerging markets like Mexico and Brazil are strong; some Latin American regions show volatility.

• China’s e-commerce business is robust, driven by local innovation, while brick-and-mortar remains soft; India and Africa Eurasia show resilience despite volatility.

• The U.S. market is softer, with weak category growth, inventory adjustments, and a shift toward premium products; innovation is expected to improve performance in H2.

• Hill's continues to outperform its category, driven by investments in capacity, innovation, and digital, with significant international growth potential.