New Products Drive Colgate

Colgate-Palmolive’s future growth depends on big product splashes which capitalize on consumer recognition of its brands, such as Speed Stick deodorant and its namesake toothpaste, said CEO Ian Cook during a a meeting with analysts.

“We believe we will sustain the growth of the company by a relentless focus on big hits,” Chief Executive Ian Cook told attendees of the Consumer Analyst Group of New York conference in Boca Raton, Fla.

Colgate’s new product pipeline includes Colgate Total Advanced Whitening and Colgate Total Advanced Fresh toothpastes, the Colgate 360 degree Deep Clean manual toothbrush, Colgate 360 degree Sonic Power battery toothbrush, Suavitel Aroma Sensations fabric conditioner and Mennen Speed Stick 24/7 deodorant with a new upgraded formula.

Cook said the company’s multi-year strategic plan is to grow its top-line and margins while increasing spending on advertising. In the fourth quarter, Colgate’s sales gains were driven in part by a 14 percent increase in advertising spending worldwide.

He said the momentum the company has built over the past three years is continuing. Analysts were generally pleased with Colgate-Palmolive’s end-of-year results announced in January, despite weakness in its Latin American and Hill’s pet food businesses. Hill’s was hurt by higher commodity prices.

Cook said Friday the company is dealing with higher input costs through a combination of cost savings, prices increases and other measures.

In 2007, Colgate-Palmolive’s net income rose to $1.73 billion, or $3.20 a share, from $1.35 billion, or $2.46 a share, in 2006. Last year’s results include a $183.7 million restructuring charge and $85.4 million of other items. In 2006, the company’s results included $286.3 million in restructuring costs and a gain of $38.2 million on the sale of its Canadian bleach business.

Cook said last month that Colgate has reached record highs for market share in toothpaste, manual toothbrushes, mouth rinse, bar soaps, shower gels and fabric conditioners.