Colgate Palmolive 4Q16 Earnings Call Notes

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Colgate-Palmolive’s (CL) CEO Ian Cook on Q4 2016 Results

We remain committed to emerging markets

” we remain I must say overall very committed to the emerging markets. We see a strong consumer base there. We have strong brand loyalty there and we continue to see good opportunity for growth there.”

Slowdown in France

“Well clearly, France category is turning negative was not a pleasant or expected event. I think there is public information out there that says that some retailers in France have suffered from the same problem which is to say consumer purchasing weakness in France. So, you’re certainly seeing deflation in France and indeed in some categories, volume reduction. So, the focus has to be to right that with your customer partners on two things…So, the sharpness of the slowdown was a surprise.”

Upping advertising spend meaningfully

“I think for 2017 we have stepped up our advertising quite meaningfully from 2016 and we believe in uncertain time with clearly slowing category growth with the innovation pipeline we have it is to our advantage in 2017 to invest that advertising deliver that growth and keep consumers with our brands. So we think it’s a good level Olivia I mean we have planned due diligently and we are very satisfied with the advertising level we have as I said it includes a sharp uptake in sampling as well. And these are all into the programs that we have on the ground behind brands and the new products that we have. So we think the plan holistically is an appropriate plan for 2017.”

John Faucher

Premiumization paying dividends in the US

“In the U.S., we finished the year with market share is either upper flat majority of our categories, our innovation continues to perform well. We have a strong pipeline plan as we head into 2017. Our premiumization strategy continues to pay dividend. The Colgate Optic White franchise finished 2016 with 6.4% market share year-to-date up 80 basis points year-over-year. We expect further momentum in 2017 behind this month launch Colgate Optic White variant. We are also seeing year-over-year improvement in market share as for our sense for sensitivity business helped by our latest launch of Colgate Sensitive Smart White toothpaste.”