Sales: $14.9 billion for oral care, personal care and household care products. Corporate sales: $17.1 billion. Net income: $2.4 billion.
Key Personnel: Ian Cook, chairman, president and chief executive officer; Fabian Garcia, chief operating officer, global innovation and growth, Europe and Hill’s Pet Nutrition; Franck J. Moison, chief operating officer, emerging markets and South Pacific; Dennis Hickey, chief financial officer; Andrew D. Hendry, chief legal officer and secretary; Nigel B. Burton, chief marketing officer; Michael A. Corbo, vice president, global supply chain; Alec de Guillenchmidt, president, Colgate-Europe; Victoria Dolan, vice president and corporate controller; Hector I. Erezuma, vice president, global finance; Stephen J. Fogarty, chief ethics and compliance officer; Tom Greene, chief information and business services officer; John J. Huston, senior vice president, office of the chairman; Daniel B. Marsili, senior vice president, global human resources; Ronald T. Martin, vice president, global sustainability and social responsibility; Rosemary Nelson, vice president, deputy general counsel, operations; Elaine Paik, vice president and corporate treasurer; Justin Skala, president, Colgate Latin America; Bina Thompson, senior vice president, investor relations; Patricia Verduin, chief technology officer; Noel R. Wallace, president, Colgate-North America and global sustainability; Francis M. Williamson, vice president, Colgate-Latin America.
Major Products: Oral Care—Total Advanced, Optic White, ProClinical White toothpastes; 360°, Max White, Professional toothbrushes; Dora the Explorer, SpongeBob SquarePants, 2-in-1 children’s toothpastes; Orabase mouth pain relief, Phos-Flur rinse, Peroxyl oral cleanser; dental professional products. Personal Care—Speed Stick, Lady Speed Stick, Irish Spring deodorants; Softsoap and Irish Spring body washes, Softsoap hand soap; Irish Spring and Softsoap bar soaps; Afta men’s toiletries. Home Care—Palmolive, Ajax and Dermassage dishwashing liquids; Murphy Oil Soap, Fabuloso and Ajax household cleaners; Suavitel fabric conditioner.
New Products: 1D Colgate MaxFresh Power and manual toothbrushes, 1D Colgate MaxFresh toothpaste.
Comments: Unlike Procter & Gamble, the No. 2 company in The Happi Top 50, is quite comfortable playing in emerging markets. Colgate competes in more than 200 countries around the globe and generates 80% of sales outside the US and 50% of sales come from emerging markets. Total sales rose 2% last year to nearly $17.1 billion on 3% gains in volume and price that were partially offset by a 4% negative foreign exchange. Excluding the impact of the divestment of the non-core laundry detergent business in Colombia, volume increased 3.5%. The Sanex business contributed 0.5% to worldwide net sales and volume growth in 2012.
Total sales in the oral, personal care and home care segment rose 2.5% last year, as volume growth of 4.0% and net selling price increases of 3.0% were partially offset by negative foreign exchange of 4.5%. Excluding the impact of the divestment of the non-core laundry detergent business in Colombia, volume increased 4.5%. The Sanex business contributed 1.0% to sales and volume growth in 2012. Organic sales in the Oral, Personal and Home Care segment increased 6.5% on organic volume growth of 3.5% in 2012. By region, sales in North America rose 3.5% to nearly $3.1 billion, Latin American sales increased 2.5% to $4.9 billion, sales in Europe/South Pacific fell 2.5% to $3.4 billion and Greater Asia/Africa sales rose 7% to $3.5 billion, according to the company.
Sales were up last year, but that didn’t stop Colgate from launching a global growth and efficiency program to help ensure continued global gains in unit volume, organic sales and earnings per share, and enhance its global leadership positions. The primary objectives of the program include:
- Becoming even stronger on the ground through the continued evolution and expansion of proven global and regional commercial capabilities, which have already been successfully implemented in a number of the company’s operations around the world.
- Simplifying and standardizing how work gets done by increasing technology-enabled collaboration and taking advantage of global data and analytic capabilities, leading to smarter and faster decisions.
- Reducing structural costs to continue to increase the company’s gross and operating profit.
- Building on Colgate’s current position of strength to enhance its leading market share positions worldwide and ensure sustained sales and earnings growth.
In product development news, earlier this year, the US Patent Office published a Colgate application for toothbrushes that release chemicals into the mouth. Applications include topical pain relief, such as capsaicin and benzocaine, to provide help with teething or abrasions; menthol or other chemicals that provide cooling sensations; flavors, including apple, mint, lemon or other fruits; caffeine and appetite suppressants. In the patent application, Colgate-Palmolive says the brushes would ideally be able to provide the benefit for three months and have an indicator showing when the chemical was gone.
For the first quarter of 2013, corporate sales rose less than 3% to $4.3 billion. Sales of oral, personal and home care products rose 3.5% to nearly $3.8 billion. In March, the company announced a 2-for-1 stock split. In May, Colgate said it will move its European headquarters from Geneva to Basel, Switzerland, in order to merge its regional headquarters with those of its subsidiary, Gaba International.