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1)TOP QUALITY

Colgate ranks the number 1 'Most Chosen Consumer Brand' in India


http://www.colgate.co.in/app/Colgate/IN/Corp/News/CompanyNews/HomePage.cvsp?
newsArticle=News_230614
Ranked No.1 in Kantar Worldpanels 2014 Brand Footprint report
Mumbai, June 23, 2014: Colgate is once again ranked the No.1 Most Chosen Consumer Brand in
India, in the 2014 Brand Footprint report by consumer knowledge and insights firm, Kantar Worldpanel.
This is the third consecutive time that the market leader in Oral Care is ranked number 1, across the
FMCG and Personal Care category.
The study highlights that in addition to leading the category in India, Colgate also outshined in global
rankings. Colgate retained its position as the second most chosen brand globally in a list of the top
50 brands.
The brand that revolutionized Oral Care with innovative products such as Colgate Maximum Cavity
Protection plus Sugar Acid Neutralizer and Colgate Visible White, earned the top spot in the health and
beauty categories, globally. An analysis in the report stated, "In the country rankings, Colgate remains
the most-chosen health and beauty brand in a total of 16 countries."
Furthermore, Colgate is the only Oral Care brand to acquire a spot in the top 10most chosen
brands globally as well as in India. With Asia being the fastest growing region at 2.9% Consumer Reach
Points (CRP) and India growing at 5% CRP, Colgate is the only Oral Care brand to be leading as #1. Most
Trusted Brand across all categories for four consecutive years from 2003 to 2007 and in 2011, 2012 and
2013 by Brand Equitys Most Trusted Brand Survey. It is the only brand to be in the top three from 20012013.
2)LOW COST OPERATION
http://www.suredividend.com/dividend-aristocrats-in-focus-part-49-colgate-palmolive-cl/

Colgate-Palmolives business operations are broken down into 2


primary segments: Oral, Personal, and Home Care; and Pet
Nutrition. The Pet Nutrition segment has generated 13% of
revenue and 13% of operating profit for Colgate-Palmolive
segment operates primarily under the Hills Pet
Nutrition andScience Diet brand names.
The Oral, Personal, and Home Care segment is ColgatePalmolives largest by far. The segment has generated 87% of the
companys sales and operating profits through the first 9 months
of fiscal 2014. The segment sells well known consumer brand
products
including Colgate, Palmolive, SpeedStick,SoftSoap, Suavate
l, and Ajax.
Colgate-Palmolive further divides its Oral, Personal, and Home
Care segment into 5 geographic divisions. Each divisions
percentage of the segments total revenue and operating profit is

shown below to illustrate the global diversity of ColgatePalmolive:


3)SPEED DEVELOPMENT

Growth Prospects
Colgate-Palmolive delivered mediocre EPS growth of 4% and
revenue growth of 3.5% in its most recent third quarter versus the
same quarter a year ago. Despite recent weakness, the company
has a solid history of growth. Colgate-Palmolive has grown EPS
by about 7.8% a year over the last decade. Revenue per share has
grown by 6.6% per year and dividends per share have grown by
10.9% per year over the same time period.
Going forward, I expect Colgate-Palmolive to deliver solid EPS
growth of between 5.5% and 8.5% per year. EPS growth will be
driven by organic growth of between 4% and 6% going forward.
Colgate-Palmolive has reduced its net share count by about 1.5%
per year over the last decade; I expect share count reductions to
add about 1.5% of growth for shareholders. Colgate-Palmolive
has a history of increasing its gross and operating margins
through efficiency gains and price increases. I expect margin
expansion to add between 0% and 1% to growth per year in the
future. In total, shareholders of Colgate-Palmolive can expect
EPS growth of between 6.5% and 8.5%.
Colgate-Palmolives organic growth will come emerging market
growth and new product initiatives in developed markets. The
companys biggest growth drivers will be China and India. Indian
per capita GDP is expected to double by 2020, with China
expecting rapid growth as well. In addition, populations are
expected to continue rising in both China and India. China and
India are expected to lift 700 million people into the middle class
by 2020. This rise in middle-class consumers bodes well for
Colgate-Palmolive. Emerging market growth will fuel the
companys growth going forward.

PRODUCTS
Colgate-Palmolive has a wide line of products in the following areas: personal care, householdand
fabric care, pet nutrition, and assorted specialty items. Colgate-Palmolive's personal care lineincludes
Colgate toothpaste; Mennen, Speed Stick, and Lady Speed Stick deodorants; SkinBracer after shave;
and Irish Spring deodorant and Palmolive cosmetic soaps. Palmolive is also a brand in the
household/fabric care area with its dishwashing liquids and powder. Also includedin this area are
Ajax, Fab laundry detergent, Murphy Oil soap, and Handi Wipes. With theacquisition of Hills Pet
Products in 1976, Colgate-Palmolive entered the pet food business, withspecialty dietary management
products HealthBlend and Science Diet, as well as PrescriptionDiet, a line available only
through veterinarians. Finally, through its subsidiary, Princess House,Colgate-Palmolive manufactures
crystal and giftware.

Chief Competitors:
Colgate-Palmolive's competitors include: American Home Products;Amway; Avon; Gillette;
and Procter & Gamble.
In 1994 the company launched its largest series of new products in a decade: Colgate
Toothpastewith Baking Soda & Peroxide, Irish Spring Waterfall Clean Soap, Palmolive
AntibacterialDishwashing Liquid, and the Murphy Kitchen Care line. In the mid-1990s it also
introducedColgate Plus Ultra Fit Compact Head toothbrushes, and in December 1996 it
introduced LadySpeed Stick Invisible Dry Deodorant. With concerns over germs growing in
the 1990s,antibacterial soaps became popular, and in 1996 Colgate announced the
introduction of IrishSpring Sport, an antibacterial product intended to compete with a "body
wash" produced byProcter & Gamble. The company anticipates continued global success
with present and future products

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