Colgate-Palmolive (India) (500830) Investor Day 2024 summary

Performance highlights and market context

• Achieved seven consecutive quarters of above 5% growth, with the last three quarters in double digits, outpacing both overall FMCG and listed category peers in India; topline growth was 2.4x sector average in H1 FY24-25.

• Gross margins remain strong at 68-70%, with H1 FY24-25 at 69.3% (+90 bps y-o-y), and EBITDA margin at 32.5% (+10 bps y-o-y); net profit after tax rose 23.7% y-o-y to ₹759 crore.

• Brand strength continues to improve, with top-of-mind recall at 70% and first-choice preference rising from 56% to 63% since 2022; enhanced brand awareness and emotional bond metrics improved year-on-year.

• Rural markets are now outpacing urban in toothbrush volume growth, though overall market growth is slowing.

• Volume growth has returned, with the first half of FY24 showing 7-8% volume growth, driven by both category expansion and benign pricing.

Strategic pillars and initiatives

• Four strategic pillars: drive oral care category growth, premiumize through science and technology, lead in toothbrushes/devices, and diversify into personal care.

• Oral Health Movement (OHM) reached 550 million+ people and 500+ on-ground locations, offering free AI dental screenings via WhatsApp and QR codes on 800 million+ packs.

• Bright Smiles, Bright Futures program expanded to 10 million children and 23,000+ schools, with new state government partnerships.

• Premiumization focus includes Colgate Total (now at lower price points and new variants), Visible White Purple (innovative whitening), and regime-based toothbrushes; premium segment growing at 2x the rest of toothpaste category.

• Personal care (Palmolive) sees double-digit growth, with a narrowed focus on body and hand wash and an innovation pipeline.

Technology, execution, and enablers

• Digitization drives execution: AI/ML for demand forecasting, image recognition for shelf management, and tech-enabled assortment planning for 1.7 million stores.

• 100% of products now parity or superior to competition; 90% of packaging upgraded; 100% recyclable toothpaste tubes by FY25.

• Recyclable toothpaste tubes to reach 100% by early 2025, with open-sourced technology for industry adoption.

• Talent development and upskilling prioritized, with strong management training and international exposure.

• ESG commitments include curriculum integration of dental health and environmental initiatives.