DOCSLIB.ORG

Colgate Palmolive (CLGT IN)

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Colgate Palmolive (CLGT IN) Colgate Palmolive (CLGT IN) Rating: REDUCE | CMP: Rs1,275 | TP: Rs1,159 September 3, 2019 Downgrade to reduce on poor growth visibility Company Update Quick Pointers: ☑ Change in Estimates | ☑ Target | ☑ Reco . 1Q20 toothpaste exit market share at 10-year low with 1.3% tonnage growth Change in Estimates . Revival looks tough as naturals drive category growth (Colgate’s weakness) Current Previous FY20E FY21E FY20E FY21E . Palmolive Facial bars unlikely to scale up given niche positioning and high price Rating REDUCE HOLD Target Price 1,159 1,208 Sales (Rs. m) 47,712 52,036 48,069 52,617 We downgrade Colgate Palmolive from Hold to Reduce and cut EPS estimates % Chng. (0.7) (1.1) of FY20-21 by 0.9-1.3% given 1) 10- year low 1Q20 exit market share 2) 1Q EBITDA (Rs. m) 13,931 15,113 14,039 15,286 % Chng. (0.8) (1.1) tonnage volume growth of just 1.3% and 3) slowdown in toothpaste segment EPS (Rs.) 29.1 32.4 29.4 32.9 except naturals. However, Colgate is making a push for volumes led by 1) % Chng. (0.9) (1.3) 30% increase in direct distribution 2) bringing family pack prices of Total closer to CDC and 3) more offers in bundled packs. Instead of being more Key Financials - Standalone aggressive for volume growth and market share expansion, Colgate has Y/e Mar FY18 FY19 FY20E FY21E taken 6-8% price increase post GST and operates at lifetime high margins. We Sales (Rs. m) 41,880 44,624 47,712 52,036 EBITDA (Rs. m) 11,124 12,361 13,931 15,113 believe Colgate’s intent to achieve 6-7% volume growth looks difficult given Margin (%) 26.6 27.7 29.2 29.0 its weak positioning in high growth naturals segment and intense competition PAT (Rs. m) 6,595 7,164 7,914 8,824 from Dabur, Patanjali and other players in the naturals segment. EPS (Rs.) 24.2 26.3 29.1 32.4 Gr. (%) 14.2 8.6 10.5 11.5 DPS (Rs.) 13.0 15.0 20.0 25.0 Although Colgate is indicating intent to grow personal care business (5% of Yield (%) 1.0 1.2 1.6 2.0 sales), its focus on niche premium segments (hand and body wash and now RoE (%) 47.1 48.2 52.1 59.3 Palmolive Facial bars) remains a hurdle. We believe CLGT will continue to RoCE (%) 68.3 72.4 78.1 88.6 EV/Sales (x) 8.2 7.7 7.2 6.6 trade at a discount to peers due to single category dependence and sustained EV/EBITDA (x) 30.8 27.8 24.5 22.7 loss of share in key category. We value the stock at 35xJune21 EPS (36x PE (x) 52.6 48.4 43.8 39.3 P/BV (x) 22.7 23.9 21.8 24.9 earlier) and cut target price to Rs1160 (Rs1208 earlier). Downgrade to Reduce. Toothpaste market share ~10-year low at sub 50%: Colgate’s exit market Key Data COLG.BO | CLGT IN share in 1Q20 has dipped below 50%, a 10-year low. Given ~88% category 52-W High / Low Rs.1,356 / Rs.1,011 penetration and Colgate’s dominant market share, sustained market share gain Sensex / Nifty 37,333 / 11,023 Market Cap Rs.347bn/ $ 4,844m is key to achieving reasonable growth. Although CLGT has seen reasonable Shares Outstanding 272m success in Swarna Vedshakti, it has not been able to neutralize the market 3M Avg. Daily Value Rs.1070.32m share loss in Total and Sensitive. Given weak position of Colgate in naturals segment (15% growth), gaining back market share looks difficult. Shareholding Pattern (%) Promoter’s 51.00 . Oral Care: Slew of measures to revive growth: Colgate has taken several Foreign 15.37 Domestic Institution 10.18 measures to revive volume growth which include 1) 30% increase in direct Public & Others 23.45 distribution in FY19 and similar increase expected in FY20 2) reduction in pack Promoter Pledge (Rs bn) - size of Total to bring outgo in line with other brands like CDC and Active Salt 3) increased for bundled packs in CDC, Total and Swarna Vedshakti and 4) Stock Performance (%) gradual increase in pack size of LUP’s. Despite poor volumes and competitive 1M 6M 12M Absolute 9.1 2.1 11.3 intensity, all time high margins and 6-8% price increase suggest margin centric Relative 9.2 (1.9) 15.3 approach of the company. Amnish Aggarwal . Personal care remains a pipe dream: Although Colgate has identified [email protected] | 91-22-66322233 Personal care as a key focus area, its focus on premium products in niche Nishita Doshi categories remains an issue. We believe launch of Palmolive facial bars at [email protected] | 91-22-66322381 Rs60/75gm is unlikely to compete as it competes with Dove, Fiama Di wills and host of other premium products. We believe that current pace of launches and strategy is unlikely to scale up the personal care business in medium term. September 3, 2019 1 Colgate Palmolive Oral Care: Will the Volume push work? Given that oral care is more than 95% of sales for Colgate, growth in this category is imperative for company growth. This is more so as Colgate is operating at lifetime high gross and EBIDTA margins of 65.1% and 27.7%. Colgate has initiated several steps to push growth rates in toothpaste segment: 30% increase in direct coverage in 2018 CLGT has been steadily increasing its distribution reach. Post demonetization and GST, the wholesale channel has come under severe pressure due to regulatory and liquidity concerns. Colgate has renewed its efforts to bolster its distribution by 1) increasing direct coverage by 30% in CY18 and is targeting another 30% increase in CY19 2) it has increased indirect reach from 5mn outlets to 6mn in past two years. We believe reduced reliance on wholesale channel is long term positive as CLGT tends to be at a disadvantage in comparison to peers given limited width of its product portfolio. Direct reach will enable the company to place better assortments in the trade channel and improve penetration of premium products. Colgate plans to increase direct coverage by 1.3xCY18 in 2019 Direct reach indexed to CY12 350 299 300 250 230 200 180 150 100 100 50 0 CY12 CY17 CY18 CY19 Source: Company, PL Rejig in Grammage and pricing strategy Colgate has been on the receiving end with loss of more than 800bps market share since naturals wave picked up (led by Patanjali and Dabur). Past few years have seen naturals segment growing in high double digits even as other segments in toothpaste have suffered. Colgate has now devised a multi-pronged strategy to push for volumes in the toothpaste segment. Premiumisation back on track: Naturals segment growth has softened to ~15%, although it is still growing far ahead of the category. After a gap of 4 years premium multi benefit segment (Total and Sensitive) is showing some signs of revival and consumer interest. Colgate is well placed to capitalize on the same given strong brands and value added variants in the segment. September 3, 2019 2 Colgate Palmolive . Improving affordability with smaller pack sizes: Colgate has launched smaller packs of premium brands like Total and Sensitive to increase their affordability. Colgate reduced the pack size of Total from 150gm to 140gms and now to 120gms, to bring the MRP (Rs92) below Rs100 and is in line with the pricing of 200gms of family packs of Colgate Dental cream and Active salt. This will enable the company enable sift from mass segment family toothpaste to premium offering like Total which has been on the receiving end due to pick up in the Naturals segment. Volume push with bundled packs: Colgate has increased consumer discounts and offerings to push volumes through offers like 1+1 or a free smaller SKU or free toothbrush. Our channel checks suggest that the shelf space occupied by all the major brands was maximum for bundled packs. CDC is giving 100gm free on bundled pack of two tubes of 200gm each. Colgate Total has 2 packs of 120gms each and 1 pack of 65gms free. Swarna Vedshakti is giving Rs17 off on two packs of 200gm each. Bundled packs occupy the highest shelf space Source: Company, PL . LUP’s are becoming bigger: Even as Colgate has made bigger pack sizes smaller in a few brands like Total, it is gradually increasing the size of low unit packs. Rs5 pack of CDC has been gradually phased out and replaced by Rs10 pack. The company is toying with the idea of shifting the LUP price point to Rs15-20 over a period of time. The larger sized LUP’s will push volume growth higher and also induce brushing habit amongst people. September 3, 2019 3 Colgate Palmolive Toothpaste segment hit on various fronts Colgate market share at ~10-year low, touches sub 50% levels Colgate Palmolive closed 1QFY20 with sub 50% volume market share in toothpaste, lowest since 3QFY09 (49.6%) with value share being 20/30bps lower than volume share. Colgate has thus lost ~800bps of volume share in toothpaste (peak of 57.9% in 1HCY15) post shift to naturals segment led by Patanjali and Dabur. Although Colgate’s efforts and innovations curtailed the speed of decline in 2H18, it is far away from gaining back lost share (June 19 YTD Market share declined 20bps QoQ). Colgate has lost ~800bps of market share in past 4 years 60 57.9 57.8 57.6 57.3 58 56.7 55.9 55.7 55.7 55.3 55.1 56 54.7 54 53.7 54 53.4 52.5 52.5 52.4 52 52 50 50 48 46 Toothpaste Volume Share (%) Share Volume Toothpaste Apr- Dec 18 Dec Apr- Jan - Apr 15 - Apr Jan Jan - Apr 16 - Apr Jan Jan - Apr 17 - Apr Jan Jan - Mar 18 - Mar Jan Apr- Sept 18 Sept Apr- Jan - Dec 14 - Dec Jan Jan - Sep 15 - Sep Jan Jan - Dec 15 - Dec Jan Jan - Dec 16 - Dec Jan Jan - Aug 17 - Aug Jan Jan - Dec 17 - Dec Jan Jan - Sept 16 - Sept Jan Jan - June 15 - June Jan Jan - June 16 - June Jan Jan - June 17 - June Jan Jan - June 18 - June Jan Jan - June 19 - June Jan Apr- March 19 March Apr- Source: Company, PL Aggressive competition pushes Colgate’s share below 50% Colgate Dabur HUL Patanjali 60 56.8 57.2 50 54.5 56.1 55.5 52.2 53.3 52.7 53.6 52.4 48.8 49.4 50 40 25.1 30 24.6 22.8 22.6 23.3 23.5 22.8 21.7 19.8 19.2 17.7 17.3 18 20 14 15.3 15.4 15.1 15 10 14.8 14 13.4 13.4 11.9 12.2 12.9 13.7 0.1 0.4 0.6 1.2 2.9 6.8 8.6 8.6 Toothpaste Volume share % share Volume Toothpaste 0 YTD CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 Source: Company, PL .
Load more

Recommended publications
  • Company Profile
    Company Profile Founded in 1806, Colgate-Palmolive is a $17.42 billion consumer products company that serves people around the world with well- known brands that make their lives healthier and more enjoyable. Colgate Brands Colgate provides oral care, personal care, home care and pet nutrition products under trusted brands such as: Colgate, Palmolive, Mennen, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, Elmex, Tom’s of Maine, Ajax, Axion, Soupline, Suavitel, Hill’s Science Diet and Hill’s Prescription Diet. Operations Colgate operates in over 75 countries and sells products in over 200 countries and territories. 37,400 Colgate employees drive our success. Headquartered in New York City, Colgate operates through six divisions around the world: ® ® ® North America Latin America Europe/South Pacific Softsoap Blue- PMS 661 Silver- Foil Stamp Africa/Eurasia Asia Hill’s Pet Nutrition Six Divisions The Company has over 50 manufacturing and research facilities globally. The vast majority of Colgate products are manufactured in Colgate-owned facilities. 5 of 5854 Company Profile Business Strength Colgate Values Colgate’s success is linked to the Company’s values of Net Sales ($ millions) Caring, Global Teamwork and Continuous Improvement. 2009 $15,327 2010 $15,564 n 2011 $16,734 Caring 2012 $17,085 The Company cares about people: Colgate people, 2013 $17,420 customers, shareholders and business partners. Colgate is committed to act with compassion, integrity, honesty Dividends Paid(1) (per common share) and high ethics in all situations, to listen with respect 2009 $0.86 to others and to value differences. The Company is 2010 $1.02 also committed to protect the global environment, to 2011 $1.14 enhance the communities where Colgate people live 2012 $1.22 and work, and to be compliant with government laws 2013 $1.33 and regulations.
    [Show full text]
  • Colgate-Palmolive (India) 7 March 2014
    Institutional Equities Colgate-Palmolive (India) 7 March 2014 Reuters: COLG.BO; Bloomberg: CLGT IN A Reason To Smile BUY While competitive intensity will be high for Colgate-Palmolive (India), or CPIL, in the next couple of quarters, we believe the street fears on further escalation in advertising Sector: FMCG and promotional (A&P) spending are unlikely to come true. A&P is likely to increase CMP: Rs1,324 38% YoY and ~340bps to sales in FY14E over an already high base, resulting in a seven-year low EBITDA margin of 17.5% for the year. In the past 16 years, the A&P to Target price: Rs1,691 sales ratio has never been higher for CPIL, when not accompanied by sales decline. While absolute A&P expenditure is still expected to grow in double-digits over FY14E- Upside: 28% FY16E, we expect the A&P to sales ratio to decline, unlike the Bloomberg consensus view. If CPIL maintains its phenomenal performance of rising market share as well as Krishnan Sambamoorthy volume growth, which was witnessed in the past two quarters, despite extreme [email protected] competition, earnings growth will be sharp. We expect EBITDA margin recovery of +91-22-3926 8033 ~500bps over FY14E-FY16E from sustained premiumisation, operating leverage due to healthy sales growth and a decline in the A&P to sales ratio. Our EPS forecast is Saiprasad Prabhu higher than Bloomberg Consensus by 4.7% for FY15E and 15.6% for FY16E. [email protected] Strong track record, entry barriers: CPIL’s volume growth at close to double-digit YoY for +91-22-3926 8172 23 consecutive quarters is not only unparalleled among fast moving consumer goods (FMCG) peers, but it is also sustaining this level, which is remarkable given the sharp slowdown witnessed by FMCG peers.
    [Show full text]
  • Executive Summary
    _______________________________________Top Five Toothpaste Brands in Mumbai Executive Summary A day to day necessity of our life is toothpaste. We have variety of brands available in market. People use variety of toothpaste as per their requirement and as per their need, the main objective of using toothpaste is to keep our teeth healthy, 24 hours freshness and to avoid cavity so that we can enjoy our life as we want and we can enjoy variety of food. We have Colgate, Pepsodent, Close – up, Cibaca, Babool, Anchor, Ajanta, etc. The main objective behind making this project is to provide detail analysis of top 5 brand used in Mumbai, and to know most preferable toothpaste in south Mumbai. The top 5 brands used in Mumbai are COLGATE, PEPSODENT, CLOSE – UP, CIBACA, COLGATE FRESH ENERGY GEL. This project gives you brief introduction about Toothpaste Industry, History of Toothpaste, Industry Overview, Segments in the Industry. It includes primary and secondary information. The penetration levels of dentifrice in the country have been on an upward trend over the last few years driven by strong improvements in toothpaste penetration. In India, per capita toothpaste consumptiotion stood at 74g in 2005, which isis amongst the lowest in the world, compared to 350g and 300g in Malaysia and Vietnam respectively. Oral hygiene continues to be under aggressive competition, with sales increasing by a modest 3% in current value terms in 2006 to Rs. 2,400 crs. Toothpaste accounted for a whopping 83% of value sales. 11 _______________________________________Top Five Toothpaste Brands in Mumbai Industry analysts believe that the new threat will come from smaller players who have embraced a different kind of business model with a different value proposition.
    [Show full text]
  • Colgate Announces 4Th Quarter 2017 Results
    January 26, 2018 Colgate Announces 4th Quarter 2017 Results NEW YORK--(BUSINESS WIRE)-- Colgate-Palmolive Company (NYSE:CL) today reported worldwide Net sales of $3,892 million in fourth quarter 2017, an increase of 4.5% versus fourth quarter 2016. Global unit volume increased 3.0%, pricing decreased 1.0% and foreign exchange was positive 2.5%. Organic sales (Net sales excluding the impact of foreign exchange, acquisitions and divestments) increased 2.0%. Net income and Diluted earnings per share in fourth quarter 2017 were $323 million and $0.37, respectively. Net income in fourth quarter 2017 included $61 million ($0.07 per diluted share) of aftertax charges resulting from the Company's Global Growth and Efficiency Program and a provisional charge of $275 million ($0.31 per diluted share) related to U.S. tax reform. Net income and Diluted earnings per share in fourth quarter 2016 were $606 million and $0.68, respectively. Net income in fourth quarter 2016 included $54 million ($0.06 per diluted share) of aftertax charges resulting from the Global Growth and Efficiency Program and an aftertax charge of $7 million ($0.01 per diluted share) for a litigation matter. Excluding charges resulting from the Global Growth and Efficiency Program in both periods, the charge related to U.S. tax reform in 2017 and the charge for a litigation matter in 2016, Net income in fourth quarter 2017 was $659 million, a decrease of 1% versus fourth quarter 2016, and Diluted earnings per share in fourth quarter 2017 was $0.75, even with fourth quarter 2016.
    [Show full text]
  • Smile and Get Started
    Smile and get started. Annual Report | 2020 Annual 20 Report 20 Index 1 Our values 02 2 Message to shareholders 03 3 Making India smile: Our brands 05 4 Innovations that spread smiles: Our new products 09 5 Making the planet smile: Sustainability initiatives 12 6 Results that make you smile: Our performance highlights 15 7 The people behind the smiles: Our team 16 8 Ten Year Highlights 21 9 Notice 22 10 Report of the Directors 38 Annexures to the Report of the Directors: i) Corporate Governance Report 46 ii) Annual CSR Report 67 iii) Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo 74 iv) Particulars of Employees 78 v) Form No. AOC - 2 79 vi) Secretarial Audit Report 80 vii) Business Responsibility Report 83 11 Independent Auditor’s Report to the shareholders 94 12 Financial Statements 104 13 Nomination Form 161 Annual 20 Report 20 Our values: We are Colgate-Palmolive, a caring, innovative growth company that’s re-imagining a healthier future for people and our planet. Our three fundamental values – Caring, Teamwork and Continuous Improvement – are a part of everything we do. These values are reflected not only in the quality of our products and the reputation of our Company but also in our dedication to serving the communities. 02 02 Annual 20 Report 20 Message to shareholders Dear Shareholder Family It is my pleasure to share with you the results for the year together at a single place. In partnership with the Kalinga 2019–20. The past 12 months and more recent 3–4 months Institute of Social Sciences, Bhubaneswar, and the Indian have certainly been tumultuous, to say the least.
    [Show full text]
  • Giving the World Reasons to Smile Colgate Sustainability Report Giving the World Reasons to Smile
    Colgate Sustainability Report 2011 Giving the World Reasons to Smile Colgate Sustainability Report Giving the World Reasons to Smile About This Report Unless otherwise indicated, this report includes environmental, occupa- tional health and safety data from Colgate-Palmolive-owned manufac- turing and technology centers around the world, representing approxi- mately 95 percent of global production and 100 percent of research and development facilities under ownership. Colgate has chosen not to publish a printed version of this report in order to preserve resources and to ensure accurate and timely reporting of information. Financial information is global and is given in U.S. dollars. For feedback, questions and comments related to Colgate’s 2011 Sustainability Report, please contact [email protected]. For all other inqui- ries, please visit Colgate’s Consumer Affairs site at www.colgate.com. Contents: Message from Ian Cook 3 Company Profile 4 2011 to 2015 Sustainability Strategy 6 Recent Highlights 7 Awards and Recognition 8 n People 9 n Performance 21 n Planet 30 Spotlight on... Emerging Markets 41 Spotlight on... Suppliers 44 Spotlight on... Partnerships 49 Key Performance Indicators (KPI) 51 Global Reporting Initiative (GRI) Index 52 Message from CEO n Profile n Strategy n Highlights n Awards n People n Performance n Planet n Emerging Markets n Suppliers n Partnerships n KPI n GRI Index Message from Ian Cook t 3 of 57 u Long before many businesses began talking about sustainability and social responsi- bility, Colgate recognized that how we do business is just as important as what we do. At Colgate, sustainability is not just a project or initiative — it’s built into business decisions every day.
    [Show full text]
  • Annual Reports 2017
    Investing For Global Growth Winning With Focus Colgate-Palmolive Company n 2017 Annual Report 30693 CPAR17_FINAL_021518 cc18.indd 1 3/15/18 1:19 PM Financial Highlights (Dollars in Millions Except Per Share Amounts) 2017 2016 Change Worldwide Net Sales $15,454 $ 15,195 +1.5% Organic Sales Growth +1.0% Gross Profit Margin 60.0% 60.0% – Operating Profit $ 3,589 $ 3,837 -6% Operating Profit Margin 23.2% 25.3% -210 basis points Net Income Attributable to Colgate-Palmolive Company (1) $ 2,024 $ 2,441 -17% Diluted Earnings Per Share (1) $ 2.28 $ 2.72 -16% Dividends Paid Per Share $ 1.59 $ 1.55 +3% Operating Cash Flow $ 3,054 $ 3,141 -3% Year-end Stock Price $ 75.45 $ 65.44 +15% 20% North America 25% Latin America (1) Net income attributable to Colgate-Palmolive Company and diluted earnings per share in 2017 include charges related to the16% Global Europe Growth and Efficiency Program and a provisional charge related to U.S. tax reform. Net income attributable to Colgate-Palmolive Company and diluted earnings per share in 2016 18% Asia Pacific include a gain from the sale of land in Mexico, charges related to the Global Growth and Efficiency Program and certain other items. 6% Africa/Eurasia 15% Hill’s Pet Nutrition 2017 NET SALES BY GEOGRAPHIC REGION 2017 NET SALES BY MARKET MATURITY 20% North America 25% Latin America 16% Europe 50% Developed Markets 18% Asia Pacific 50% Emerging Markets 6% Africa/Eurasia 15% Hill’s Pet Nutrition (1) (2) NET SALES GROSS PROFIT MARGIN DILUTED EARNINGS DIVIDENDS PAID ($ billions) (% of sales) ($ per share) ($ per share) (1) (1) 60.5 17.4 17.3 60.3 1.59 50% Developed Markets (2) 1.55 (2) 2.93 (2) 2.84 (2) (2) 2.87 1.50 60.0 60.0 2.81 2.81 50% Emerging Markets 1.42 16.0 (1) 58.8 58.7(1) 58.7(1) 2.72 1.33 15.5 15.2 58.6 58.5 58.6 2.38 2.36 2.28 1.52 ’17’16’15’14’13 ’15 ’17’16’15’14’13 ’15’14’13 ’17’16 ’13 ’17’16’15’14 (1) 2013-2017 exclude charges related to the Global Growth and Efficiency Program.
    [Show full text]
  • Pledge to Save Water and Help a School Win a Garden
    FOR IMMEDIATE RELEASE CONTACT: Sue Kauffman TerraCycle 609.393.4252 x3708 [email protected] PLEDGE TO SAVE WATER AND HELP A SCHOOL WIN A GARDEN Colgate®, ShopRite® and TerraCycle® Prepare to Award TWO Gardens Made of Recycled Material NEWARK, N.J., (July 8, 2019) –Today TerraCycle announced the 2019 Save Water Challenge that asks school students, teachers and communities to take the pledge to save water on behalf of their school for a chance to win one of two (2) recycled gardens made from recycled oral care waste. Launched in partnership with the global oral care leader Colgate-Palmolive and regional retailer ShopRite, starting June 30, schools located throughout New York, New Jersey, Pennsylvania, Delaware, Connecticut and Maryland, that participate in the Colgate® Oral Care Recycling Program, are eligible to enter for a chance to win a garden made from recycled toothbrushes, toothpaste tubes and floss containers. Through September 30, consumers can pledge to save water on behalf of a participating school once a day during the promotion timeline. The top two (2) schools with the most pledges by the end of the contest period will win the grand prize gardens. Grand prize winners will be announced in October and the gardens will be installed next Spring. Schools can encourage their community to pledge online by logging onto http://www.terracycle.com/colgateshopritegarden2019. ShopRite is also encouraging community participation in the contest with displays throughout its 270 stores and information about the contest on ShopRite’s Facebook page. A full set of rules for the 2019 “Save Water Challenge” can be viewed: http://www.terracycle.com/colgateshopritegarden2019.
    [Show full text]
  • Colgate to Sell Its Viva Detergent Brand in Mexico
    Colgate to Sell its Viva Detergent Brand in Mexico New York, New York, December 29, 2000... Colgate-Palmolive Company (NYSE:CL) announced today the sale of its Viva detergent in Mexico to Henkel, the German consumer products and chemical company, effective January 2001. The sale of this non-core brand is consistent with Colgate's strategy to de-emphasize detergents while investing in its high margin personal care and oral care businesses, which have been exhibiting healthy volume growth both in Mexico and around the world. The sale will have no impact on Colgate's earnings, as the one-time gain that results from the transaction will be offset by one- time charges, including the write-off of Mexican detergent assets and other one-time costs. * * * About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Household Surface Care, Fabric Care and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Mennen, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, Ajax, Axion, Soupline, Suavitel and Fab, as well as Hill's Science Diet and Hill's Prescription Diet pet foods. For more information about Colgate's global business, visit the Company's web site on the Internet at http://www.colgatepalmolive.com. This press release (other than historical information) contains forward-looking statements. Actual events or results may differ materially from those statements. Investors should consult the Company's filings with the Securities and Exchange Commission (including the Company's Form 8-K dated November 13, 1998) for information about factors that could cause such differences.
    [Show full text]
  • Colgate-Palmolive (India)
    COMPANY UPDATE 12 MAR 2018 Colgate-Palmolive (India) BUY INDUSTRY FMCG End of market share bloodbath? CMP (as on 12 Mar 2018) Rs 1,044 We met the management of Colgate-Palmolive India years prior to Patanjali’s entry. However, they (Colgate) to discuss (1) Recovery in the oral care underestimated the scope of naturals and hence Target Price Rs 1,204 market (2) Analysing Colgate’s market share losses in weren’t too gung-ho about it. With Patanjali’s entry, the naturals space in the oral market blew up from Nifty 10,421 toothpaste and toothbrush (3) Colgate’s counter <10% to 25% share. Sensex 33,918 strategy to stabilize and regain market share (4) Health of the trade channels (5) Scope of entering . KEY STOCK DATA Change in consumer perception to Ayurvedic: new categories (pollination of global products). Naturals/Ayurvedic did well not because of pricing or Bloomberg CLGT IN Recap of 3QFY18 results: Colgate’s 3QFY18 volume quality of product but primarily change in consumer No. of Shares (mn) 272 growth of 12% (12% decline in 3QFY17) was it’s perception from scientific products to ayurvedic. MCap (Rs bn)/(US$ mn) 282/4,367 fastest in the last 12 quarters. However, volume Colgate and HUL lost significant market share in North 6 m avg traded value (Rs mn) 330 growth was below the street and our expectation and East India owing to stronger change in consumer STOCK PERFORMANCE (%) (13.5%). As a result the stock corrected by 8% post perception in these markets (Baba Ramdev’s home turf).
    [Show full text]
  • Brand Management
    Brand Management Abhishek Pratap, Published by - Jharkhand Rai University Subject: BRAND MANAGEMENT Credits: 4 SYLLABUS Branding Concepts Introduction to Brand; Brand and Branding Basics; Relationship of Brands with Customers; Building Successful Brands. Terms associated with Brands Understanding Various Terms; Brand Names and Brand Extensions; Co-Banding and Corporate Branding; Brand Associations and Brand Image. Management of Brand Brand Loyalty; Brand Relationship; Brand Equity; Brand Management Brand Processing Brand Evolution; Value of Brand; Brand Planning and Brand Potential. Brand Selection Brand and Consumer Buying Process; Consumer Search for Brand Information; Issues associated with Effective Brand Name; Added Values Beyond Functionalism; Brand Personality; Branding to make Tangible the Intangible. Suggested Reading: 1. Branding Concepts and Process by Pati D, Publisher: Macmillan 2. Creating Powerful Brands by McDonald Malcolm and De Chernatony L, Publisher: Amazon.Co.UK 3. Brand Positioning by Subroto Sen Gupta, Publisher: Tata McGraw-Hill 4. Product Management in India by R. C. Majumdar, Publisher: Prentice-hall of India Pvt Ltd. 5. Managing Indian Brands by S R Kumar, Publisher: Wharton School Publishing BRAND MANAGMENT COURSE OVERVIEW A good brand is priceless to any business, and with this course · identify the responsibilities of a brand manager. in Brand Management you will learn exactly how to market, · evaluate brands to identify the components of brand equity. · use Porter’s Method of Competitive Strategy to implement a manage, develop and integrate a brand in both the marketplace marketing strategy for a brand in a given scenario. and over the Internet. · identify appropriate steps for evaluating brands in a given There are three ingredients every company needs for branding scenario.
    [Show full text]
  • 2008 CFAOCF Annual Report
    CHARTERED FINANCIAL ANALYST SOCIETY OF ORANGE COUNTY (CFAOCF) CFAOCF Investment Portfolio Annual Report 2008 Prepared by the California State University Long Beach Student Managed Investment Fund (SMIF) 2/28/2009 TABLE OF CONTENTS SMIF Participants ........................................................................................................................................................... 3 About SMIF .................................................................................................................................................................... 4 Macroeconomic Overview ............................................................................................................................................. 5 Fund Performance ......................................................................................................................................................... 6 Equity Components ....................................................................................................................................................... 7 Colgate-Palmolive Company (CL) ............................................................................................................................... 7 MasterCard Incorporated (MA) ................................................................................................................................. 8 McDonald’s Corporation (MCD) ...............................................................................................................................
    [Show full text]