Colgate-Palmolive (CL) 29 Apr 222022 Q1 Earnings call transcript

Good day and welcome to today’s Colgate-Palmolive Company First Quarter 2022 Earnings Conference Call. This call is being recorded and is being simulcast live at www.colgatepalmolive.com.

Now for opening remarks, I would like to turn the call over to Chief Investor Relations Officer, John Faucher. Please go ahead, John.

Thanks, Cristina. to first welcome conference earnings and call. morning our quarter XXXX release Good Faucher. is This John call conference forward-looking Today’s include will statements. Actual results statements. could differ materially from these refer statements. website, including cause differ press filings earnings subsequent that SEC on to could our available and discussion Please recent on materially of all most factors Colgate’s Form release XX-K to with a XXXX from actual our and SEC, results filings, these Annual for Report the the the discussion a of of financial conference release. call include This Tables X also those including and in the non-GAAP identified will measures press X earnings A corresponding and included is reconciliation financial release in Colgate’s on measures website. full is to the available press the earnings GAAP

Officer; provide on Officer. this Joining the and XXXX with Wallace, you morning Sutula, call Chairman, Chief our thoughts results Noel and Noel QX Financial on Chief outlook. our will me are Stan his Executive President and

will open it up for Noel? Q&A. We then

to and John good morning all of you. Thanks,

will this others, and growth stress in release lockdowns a [Technical year. for world are oils seeing of have of the COVID-related Given global is networks This very and increases am our sales sales following logistics. we now questions. logistic than certain of a difficult as be we Obviously, greater-than-expected what as and we that the fats chain have shaping around a you the year I the solid is Difficulty] organic think will remarks with offsetting anticipated growth year for in you supply number balance the stabilize more XXXX materials commentary from earlier fairly short as I up raw morning, seen keep prepared my particularly

line high indicative the difficult comparisons, into in that developed see pricing is and in pricing and more be better performance volume of single-digit this believe the April. markets in April. the in remarks, chain weakness and pricing quarter with the organic help starting as of year. said exited should We Elasticity the as sales accelerate off, higher we will issues QX the sales took we balance limit February of expectations for to and and We Encouragingly, and volume or pricing our balance prepared than organic will over quarter this in in either improved First more March versus to seemed given incremental knew pricing the negotiations. February year. supply has we we most be growth from continued continuing the January

the in chain Importantly, we us factory are of stabilization global the impacts benefits supply network our with opening global of beginning COVID-related and capacities. the to logistic the see behind the of closures

would not COVID-related further our and does in our the ability of manufacture the impact guidance assume year products. balance Our lockdowns distribute that to

Diet normal availability dealt availability with about global which to where new companies. growth. from feel the difficult the for below and our for forecast about is seeing share This guidance in in environment. our in the better shipments organic cost able has the the organic care. on-shelf the for the two our relaunch sales innovation, U.S. significant through in Hazel core chain, restore oral the brands, and you China around supply we U.S. Prescription challenges chain Hawley confident & been of sales with other months supply By of in the were into to toothpaste obviously we as for this same to Our several an have heard advertising tapping market of is feel in acceleration in X% And X% improved outlook us you is gets performance better to particularly in share now U.S. Hill’s U.S., business, trajectory X.X with year, are and share Combined brand balance of back the performance year. of toothpaste. balance Tempering levels, toothbrushes growth we important Asia our year-to-date, up the increased manual we our and points the reflected in normal whitening our

cost past biggest that the soybean but the oils. new few factor months, palm resins. in the krona palm behind fats raw has historically impact come call has of material risen been has we entire others. coal and Our oil, That’s our over area tallow oil, spend and oil, biggest second This area

know you a have half second oils resins. These is inflation equal and than nature a Although XX% global Freight chain our across expect the will chain this spending from we are basically given in Mexico spending compete in the year, we in ingredients used fats the our of are while to on adding up costs we seeing freights and every ocean to more our advantage, And increase year. global supply category the are XX% environment. on fats supply U.S. strategic doubled. oils is in this year-over-year current our the and rates and

We offset continued significant take headwinds. to to these steps

We further for Funding to We while savings are productivity accelerating the initiatives. Growth this and launching innovation. drive cost XXXX initiative pricing and taking year we are global our our additional premium year established next

have our ex-logistics first last the million We in quarter reduced quarter year overhead the $XX by spending versus already.

to that. your focused the we we and against for up during of it open we year on know balance need questions, execute as the very are So, we

growth. we we to happy that on and our deliver to previous While sales I through well us supported your be cost thought while that growth are Thanks. believe is plans prudent guidance well take expectations, our organic we now. And to leaving our as below to forecasts questions well and positioned know guidance, will return our profitable our are look

will take Stanley. Morgan from our question Mohsenian with We first Instructions] Dara [Operator

Hey, guys.

in you P&L this terms the investment, in change that clearly, a of also question on of two-part have the external terms change change of guidance. today, when it of in guidance Noel, choices in we have just level it So large requires costs, of but requires levels pricing, etcetera. a higher sort productivity, around a

for more very of the the quantified remarks, in maybe guidance at ad is just you earnings in That’s got have you with a are million impact. just specific on higher the with other all? I sales incremental think a), terms well how drivers guidance, expecting the doubled change. that’s So in guidance. price you prepared new the of can the change changes. of so in XXXX, you incremental it it and you spends the reason revision am some Will short-term bit ask But cost of about the org high-teens part – a Obviously, be sort just productivity? earnings new the I $XXX costs,

cost offsets, wanted just of that longer better then the more to really b), just strategically some term. pressures? the And trying just am I So to extend question understand same

with You you it strategies sales of put the Thanks. under have in Do at impact obviously these of trajectory to sort top look place you some line how changes the beyond growth organic decisions had this extent your leadership. year? or long-term the if this sort all, year P&L success reaccelerating as might, – growth

Sure. Dara. Thanks,

me bit of obviously core about pricing comment, I balance start thinking a year. the we Let the to are because little the how about think it’s

took in the the know, pricing late you developed little a we quarter. least markets at in As

we exactly quarter, February, April we the March As happened. fourth that’s take in and what about planned pricing have and had talked to in

largely across lagged didn’t were we as in world, pricing North Europe, was Europe, North part quarter bit little and get the as benefits the pricing developing while get So, in America America of we which in it of the the significant well able to the P&L, the quarter. first a

at the strong March the particularly that in exited saw we single-digit pricing high April. the month transpire quarter, we that executed, obviously, being we are As we to in has look seeing continued as and sales

We continued go. year of part the to world have accelerate in developing likewise the in pricing to the

some have will of we developed the type world we prices, more for those see being balance was in the we good in are where the Europe So, particularly entered of in anticipated and quarter doing going we the we of about indicative and a as the the rest execution consequently were lagged longer negotiations as pricing what we year. we of a and the of are of very pricing taken than in more pricing – little March bit, that which you feel world, through combination the

are days elasticities, So, we or so thought. particularly elasticity. early around far with less on where But line it’s more in volumes so good,

obviously see how will We we believe very of we very the have, unfolds a strong strong that innovation plan, But year. in as the balance well. plan promotional

pretty March, we as which strong pricing, based have there. plans place that put the of growth I choices have of Strategically, terms we on where importantly, balance year. I what for we really said, have the and a in in we see I no So, plans. big changes April in is mean, in the think it on seen to our guidance, more we core feel good

premium going have into as core innovation well on We as about innovation. talked year the

year much chain now would the to heard conceptual transitioning the we that comments, the when in that new the improved business, away say from lot start lays by That are re-launches, a pricing diet the we taking that we volume have obviously I price. were significant core also have quarter – will into the out lot given business, given the world, those get core time. business, a execution That you we the one will of of a – entire the strategically, some of launches better science into we issues about Diet number are is faced was businesses And we softness great a innovation. volume we back That’s obviously brand learnings which You line are were next, success entire likewise, obviously we to bolster that in to entirely re-launches the taking is business. environment Hazel place with. improved more with, in diet, us we new across we a that was on at in little this driven faced particularly products of bundle on premium and market how which of take on supply our packaging an our complete thinking Hawley some allow so prescription other two a same value for which on sight on the execute and in & that change a China across my had was our around fact in nutrition, at know putting which now portfolio. Prescription the core is bit and those portfolio pricing first time better our of that on saw

into move that’s sure and plan environment. innovation we protect right potential choices, very, as getting pricing be we are where a which market, about of the core very execute the kind in very making will important strong think our we we So strategically, recessionary making the against businesses,

We will UBS. question go to Peter from next Grom with our

good everyone. hope morning well. you doing Hey, I are

So, high expect on then February X% January? I the the sequential How you just seeing Can today? to wanted single-digit are the the in in year, balance the I what the much in and just the what the Thanks. into in we little outlook Noel, mentioned revenue and predicated And versus or March that saw assumption X% to of market for organic through you the historical should elasticities volume April. ask bit? growth you was unpack pricing outlook. is revenue a maybe stronger that about you know improvement organic

Sure.

let little softer we anticipated. of a was bit a little deconstruct QX. So, than January me

transitory delayed in little the Europe As that’s the a in Hawley softness little negotiations. saw softness obviously & we French little given We We a from pricing business some bundle. business our we mentioned, in saw as I mentioned, moving rural softness the new Hazel to of bundle we really are as areas India. in we our little a in saw softness old saw and

all led towards month So strong we the into volumes and early starting And the that Sequentially, somewhat January. had to April. February of March in as a March, versus February, improved soft I to and end mentioned, pricing March both saw January. we that and executed improve get

mentioned, I quite feel ended we translate as as well. quarter. we about that So, have April the into seen we a strong where good And

how of the up kind have we that’s So, guidance for the set year.

year more continue the in toothbrushes So, will doing be volume the on getting more innovate ball year. from believe through balance pricing P&L I more first behind get to quarter, as grow as toothpaste some to that end the it constraints point, the enhancements of will get well again, yes, X% us the in the say the shelf we move things cost some money the that will that supply as for us into relative the we chain organic to and the of did we we a low to market. sequentially and provide as of move

thing more volume are growth that have we well. seen our that’s the as seeing And translate result translate business and as We category into into retailers. in good consumption because for a a it

organic So the back see from the to standpoint, the through as the peak in much we will in we mentioned, in I through materials aspect, take pricing as raw see quarter. now second in particularly pricing more the not will And you to have quarters, execute it an to half later sequentially year. as more more grow Relative the I think add there. come looked pricing we

took in We taken strong – we have the of part world. pricing developing

our accelerate. see you some on growth at that That’s been doing second Pro premium and up we of I we into success in as will XX%. a innovation get stack are where situation the end couple we White our what the roughly is pricing have fourth that’s getting accelerate is of of third we the combination percentage likely quite management X-year quarters. we will but see quarter, whitening the things. of – in certainly will our well And box. are premium-priced having of behind pricing there And in, and Obviously, organic we a see more taking more out are initiatives the a won’t which in Series, come. pricing bundle most to Optic pricing revenue the And You

I as our re-launches get give using well. will as us core quicker, a chain importantly obviously, pricing We supply which earlier, to mentioned now opportunity are executed

those getting initiatives half. So, would relative pricing the three be the key to back up in

next from our with to JPMorgan. go Teixeira question will Andrea We

headwind morning. Thank out of which America efforts And pointed home perhaps Good premiumization a to called out. about have Noel, as bearing franchises been just was and I that obviously talk you you. just care, the focus the wanted new you on fruit. and some North

question was wondering just you as the thinking I you thinking And if, XX% looks like be said, year? how elasticities, have am we as a in how assuming pricing. U.S. regarding we stacked prior of a should So, the that be I balance should it as is

the we Thank or can of you there, thinking rollover pricing? fine point coming how the end that earlier that in the So, actually is at summer a as more pricing Just into be in U.S.? you. fall than the

Andrea. Sure. Good morning. Thanks,

home Let me care. about talk little a bit

COVID-related balance of April again, that dish of implications of and improvements specifically And quarter first care, and a little some the a home bit that constraints our on So starting we manufacturing U.S. us moved the in have and contract we that our liquid had have lot we the as of well. move business. see with bit contractors we that addressed the as the the that particularly through of into of to plagued a issues the certainly challenged the certainly as

care home nicely. volume come from see back a to So, we standpoint starting

second in are some as pricing on of business care well. taking quarter the home that We

obviously cleaner we have combination both Palmolive Ajax move bolster product as improved hopefully and share And business liquid translate the business we products elasticities have back the consumers in into assuming that better here. a than softness is from through It’s taking plans solid. The particularly little will from therefore, business across is everyday. numbers. will the pricing we the softener to so really quite it and fabric on so some Why? historical initiatives is again, and pricing early business dish a Overall, half. new everyday U.S. standpoint, and in it’s consistently performance. a be is going solid sector. think days that that are to Everyone is of I most use up the be And or of On up elasticities, because seen consistently you everything everyone that –

elasticities core less consumer across than couple But far. the And that’s the plays our we significant so, be back business historically, core but of value going inflationary retailers. and in of well There to there big across under-index, think premium seen the and franchise very what to widespread distribution our But portfolio we and go our compete our factors I seen as market, result into high past watching we grow less we positioning that in on be the have we if to are a we in will indexes have entire But businesses, the to consideration. little because continue which we will bring of is bit core ambitious inflation you category where and segment a take environments, see a aspect, closely. take to again, to business, segment we know price points. that that we plans the multiple so and will and can have is you

So ultimately we are And will said, are here the to ships elasticities I categories experienced pricing before. We’ve the kind going all market. we’ve feel rising taking because across pretty as of good case about into good end where innovation board. up this the got it just the in all

We is your will with Wendy line Wendy, open go check next your to mute Citi. button. Nicholson please

me? hear you Can

can, We Wendy.

Okay, that. sorry about

recession remember the consumers that that or trade where it’s And to an or on that model, was whether my just whether really business. that area thing I the I honestly competitive back So the one line something the whether Hill’s follow-up Hill’s If look did business questioning business, the for during suffered innovation really in you elasticities. – can’t specific a of great was about was a down.

this your of confidence to So but need around in that history don’t the to number you one, recreate me, strong. going business terms is Hill’s I time just guess remain for

has there growth been amazing. volume Your

recession, cheaper for into look to consumers if trade going and your confidence down pet that we do are Just food? Thanks. a go

Yes.

you at than I If we remembered. how as made chase to the staying probably looking believe back And we the rather was ‘XX, naturals some in at as the boom, strategic that least stated, in true the and go naturals errors you’re you – we core openly of beginning our ‘XX, view, have to business.

So to was close momentum when salient point that had and And has today, the on the was about terms I time, investment. it foot near in that the and nowhere front at business continue of biggest that and that nowhere driver. to Hill’s our as think in certainly, certainly we’re think business

today contract to that the wet is bought we more That fastest-growing heard Nutriamo manufacturing us, in in that for closed of You is particularly Italy. capacity facility is the segments, we exciting. Europe, which going unlock one which

the going Prescription Diet this an going to our innovation is relaunching which of our exciting veterinarian particularly back about year, professionals. half we business obviously into for is think half which of the We’re business, be

more business on in the today Obviously, ‘XX. in So on a was much it. us is back it much place different than ‘XX,

We’re so why investment the has is this going spend upside America to hence a the lot capacity Again, maintain critically share, purchase there, is we think today, of Nutriamo. low a reason and constrained important. the of in penetration low which and that North business of

much stronger it’s So in again, ‘XX. ‘XX, in is past. a think than significantly the we been in we itself brand place than we’re were different The

question next Raymond And to Olivia we will Tong our with James. go from

costs what how your are a commensurate morning. Good the I of you the EPS obviously, how no you And the a you there? the handicap, And talk But pricing much. that uncertainty. and versus the mathematically, about for full seeing most pricing, for at expectations what where from perhaps thanks. EPS realizing, with points more but a to input And local is my you’re XX can were little respect to end the are as down expectations of ring singles? about mid-singles you or players Great, the are due so much your pricing the so other. granularity the on of from doing? to changes get level you but around was shortage FX rate you’re realization to EPS is just bit revision can to peers is then hoping taking far what Thanks they there pendulum what question. talk one year not they that international are markets, specifically meaningful do you doing to expectation multinationals, Thank get

to hear Yes. Thanks, from Great Olivia. you.

extraordinary and bridge which EPS, just me Let then $X.X you’ve it. as around the thinking saw terms and we about billion. more down materials a guidance, listen, I’ll But Stan you January of our in a the little post heard, give fundamentally, this how the that conceptually acceleration talk on is in bit raw in comes have we’re jump to

cost, of own fact as important chain, So some we’re rates high. well. obviously, mentioned, transit we will itself the the keeping the is rates the just driving, the the change have ago today particularly Part work period, accelerate. balance stay that are doing obviously, out on assuming year. year that, of we’re add versus that with us Mexico, XX% of get up manufacturing of logistics move we’re the maintain of shelf, EPS, is on year that for to we with continued improved through about but a as in which at ocean its will significant out obviously logistics our that seeing, I to combined we and And of which potentially half the they are are Ocean where which supply rates, for higher at the is back product anticipate as we will

Why I have fast open So, oils, I largely for up and and the little then by will come Stan. international pricing. a and don’t we talk raw And markets back that materials, you. about bit get will I’ll Stan driven

Sure. Thanks, Noel.

planned that. in January, saw we entered costs to as up we we we the year-on-year, the for In year, the market. we the going So entered year, knew commodity be were and

At if would would we commodity increase. headwind. in don’t time, the through XX% January, year-to-year $XXX the that and stated We anticipated material went million cost moderate, expected or we that represent roughly as January, that year. costs But a moderate in as we

costs. heard seen cost you we’ve costs those material in of our incremental see we $XXX commodity as year-on-year up basis. million prepared significant What XX% January, that now And full for movement year. over for Since means the remarks, an be on that year a the in happened? is what’s So will

So to commodities. little power our we of their plants gas in happening bit those many up underneath gas a over and And used importantly, and of many Natural suppliers’ XX%. context put on plants, what’s which costs pressure natural some is our timing. is puts

and up Soybean are and up increasing. palms, corn third; by over XX%

oils and fats palm portion and and fats means So material, up spend another combined And as nearly what these doubled we up Take basis earlier, since and be combined including two doubled of said make will for and oils, on significant the XX%. that and XXXX. year, up a than up year-to-year important glycerin, that’s XX%. over resins over the year-to-year. XX% are material more categories are Resins a

to looked in we’ve XX% logistics, nearly translates since And being cost million we expectations inflation. logistics increase, saw as since that So for at up January, that year. similar the over we’ve $XXX our seen full we’ve

we increase America, about and market points this gained over is clients’ particularly needs. decision shipments prioritize this, to double digits North in demand prioritize and client of And grew that given meeting of opportunity, some toothbrush we category share. briefly XXX because our talked We

we’re price what makes We’ve would we significantly to about Growth here. alternate leveraging and viable, And $X.X XX% of On think impact. to then, cost I logistics, our leveraging help our taking cost analytics some Funding things where mitigate Noel On a mitigate to this driving increase materials, that doing procurement over that increase. But sense, the to price billion. profit reflect importantly, program that materials, tackle actions. number represent and process the of about reformulating we that significant we’re are talked Now over our talked robust to like escalation? are enhance taking a

As streamline stabilizes to we’re COVID-impact and from like expedited our logistics our less things shortages, material use supply transport. chain going

to inventory and Now longer we’re more carrying temporarily, finished erratic due transit times. goods

things We’re also making warehouses. our in automating investments like

remain being to So we’re tackle while these aggressive those. volatile,

view, to going a that for year. point down a be for as headwind P&L EPS, translate of are you from us those So the to

you aggressive that’s investment long-term overhead. X% And to that productivity growth contract actions component still We’re to And that maintain the stripping X% down We in the funding of improvements will an And drives advertising. will year. expecting that has improved EPS taken multiple Take to to are and important model, what why mid-single down, prudently, the basis we’re we basis. take down done overhead headwind a on rate EPS logistics, a a we’ve we organic of job year-on-year but our us into drive in the taking that pricing, effects on that that’s a that’s team and good managing hikes, aggressive our interest on very growth the our continue the for tax, up a margin range. here the going year-on-year when to to but digits. believe yields

come Asia. on I extent certainly private brands to certain what we’re a seeing an around as just extension label travel local let some would return for that. to back So me and of

Obviously, pricing are follow materially think and these there. ours. goods some of private increases we’re seeing certainly And of take We’re the quickly. obviously than cost local very them, going label their to impact see likewise, brands higher I

unfold carefully carefully. that very We The don’t have digits. care open hands few environment the or as we lot migration and index label. watch so highly we watch have so to that will over see a need to months. that But seen are single the next liquid with we two low Difficulty] [Technical categories significant of So a far, Obviously, we categories erosion private oral toothbrushes. private label not

with from Deutsche Bank. And we will question go Steve our to Powers next

quantification impacts issues, in and supply I chain Latin I’m in the Europe supply about chain guess but morning. market Good as everybody. or of holding to including you thanks terms curious Hi, America, America, in North you volume back. remarks whether think the particularly your Yes. in terms share, quarter, throughout or how in of

number just think on kind of just you how the It for was down that how curious number held and and balance much So details further just year, reverses as to how one. releases two, overall. – some much maybe And then were the that China. you of about how back of

that I strength. your said you think in point Colgate as China release, out itself you a called of

some that Hazel, obviously you some and with you. & but – more Thank timing in there color think just obviously, which happened market very dynamic a forward, Hawley context? is So on China maybe about what some going how

issues talked you the really Steve. shelf COVID. of XXXX of and really feel the lot throughout out the shortfalls choppy Listen, having first COVID a to quarter the structurally where best-in-class chain, in derivative and lockdowns about have impacts our impacts March, well, China a that Thanks, specifically company. the we’ve But all where been a first the better the the us, as to saw supply February from those some is, news a back of And of as on with half implications out regard as third we if we across setbacks fourth lot our logistics been that much, of coming challenges – Sure. for related certainly and has take the saw we us second availability. in finished we of it in we you raw Mexico, some good get of saw into seen categories is historically as in throughout of material quarter. we into went The and off chain XXXX lot much caused and of choppiness supply into suppliers in as we accelerated a bit

that detailed us which the our now availability, class. should weekly now right way below was top of to you where at very And availability are those see back basis point-of-sale that and react dip quickly. actually very, measuring of customers we in norms, directly allows on-shelf at data daily some in on-shelf Our

the quarter, to business have sufficient and we those more is a and taken have the decisions sight given or trade, us We ensure seeing contractors had to first the an that but terms some – quarter. some our in – and particularly That first of we the from clear ability through shortfalls to in cost XXXX toothpaste toothbrush we various in raw that the now money far in inventory behind our feel end has we of of uncertainty increasing demand, suppliers. material compensate source here line that the obviously, we’re

So that we weeks, U.S. in itself as as into translated Take is past. we the last flat had share seven which been out of better up where exited we versus XX on-shelf significantly quarter the ability maintained or were the into April, performance. improvement marked went we in has X in a has improved the and categories, market

that we in of into taken, we levels we’re likewise, has quarter issues business as of a that little Some seeing and the the terms through saw now some there, some exited we translated have likewise better where addressed been volume. the decisions shortfalls service European bit

business. So of all part really particularly of world. behind the some our certain of on actually most are quarter. from board, tremendous forward moving that China the our credit us amount lockdown good in CP in going stronger we that to work is see single up was impact all, the of as us, a issues up now for sense the unfold – of business And in the chain digits give to I across a issues I agility high uncertainty story the those really think supply continue the only China had doing parts significant to is of for set a resilience

repositioning including portfolio quarter. the and Steve, in incur with new sector. a which business, China China I the the Hazel, Our name basis was was & in was Holly the – out in Hazel Hawley XXX as rolling the business online CP that first market change points that brand, & migrating, is mentioned, an of part will share business, fastest-growing entirely obviously the – of combined to retail up brand

distribution result of we of were inventories China, significant down a scale moving old distributors. product the of As

we inventories their it excitement that couple started see We’re into preparation obviously taking of distribution March a We’ve of lot behind unfold the will it in down full to end see April, more that and product market. of a and see the we China now take for months before ultimately, new will across the back in relaunch. the

strong business for us. the China overall, quite So looks

For shares China in Colgate are many overall up. many, the & our combined, years, Hazel first time Hawley toothpaste, in and market that’s

think changes to some time a that long that, I that’s me a in big say been since heard China. testament made it’s but So strategic we you’ve

And the carefully terms that as watch paying both of dividends. thus well market. in relaunch hit Hazel how going quite market about say terms X X.X, we’d portfolio the years, is as excited Now will that definitely Hawley back we obviously strategy of to and go but far in seeing we’re it

to We with question Jason Sachs. English our from next will go Goldman

slotting questions. I of guess me Hey, a guys. in. for couple Thanks

or your you as from around And off sales kind that of many have imagine exactly you’re did to will think be with you is what’s behind that brand, comments do in When I be going from the you’re do planning retain even when pressure last the us? like how we that all online the brand. of begin or the I migrate to drag quarters the likely a the live not building First, think assumption going to the rebranding? away Darlie exit of execution?

mean, but share build Sure. Jason, relaunch, incredible behind salience. only have with It the relaunch. planned we will brand this is that’s investment mean Listen, I the number we expect, has China, that this hold not significant in we intent. obviously, one ultimately I

putting We’re as technology well. in improved

innovation We that’s this. an coming have behind stream

always the you is is risk starting than in to more – to early thus I of seen question no happen X that of over transition a there Now but there done will it name, what mentioned, January, change really started unfold and work brand that when couple days, next the as we’ve we’ve at far of early all tail likely the bulk And February, months. X March. end the

the know third second will by where quarter, the quarter, of we end We are.

world. sense, get a will the We in online good particularly

the product, into vast channel in mentioned, we this the will how China. very cities. online E But we pretty majority C, gets market. in overall, fastest-growing very, business a and in As Darlie D that online a with is quickly obviously relative I read And is widely our strong, get – are distributed to doing

but the time the widely It of in so far, are take to quarter, come back distributed. to as will So, really new doing us it’s But good. we on so of third see this assess balance to with work and and we move the to product I you modern starting say, shelf another product, the trade, through already quarter. are some the old view into would quarter we the of how give point

We will go to our next question from Barclays. Lauren Lieberman with

that on But results, wanted follow-up impacting chain supply had first heard this chain least talked North Thanks. Great. quarter supply do goes, reported know headwinds I Europe. the third Same I sales have Good we quarter, by for I the you a dynamics chain And because morning. of my is in recollection, that had sense impacted the for of even in year and Latin to would and softer January. fourth about to that the sort bottlenecks at America. you you start in XQ. America would quarter think given it or honestly, to time supply question, the the about

year? look like it and seems for I of be I feels specifically we moving I the on balance visibility because And – know – and just Latin then it’s question to Europe. frankly, confidence, America of forward intra-quarter in just chain So, that a about level the wanted volatile target just just ask broader supply to but Thanks. there the environment, dynamics a an as

Sure. clarify. Lauren, let me just

had complexities supply the of incurred of raw chain not and seen been as that the principally chain suppliers Latin obviously some volatility has material North that in there. issues constraints driven middle The some well as America the some quarter by America. our supply which have have created issues Europe, in in shortfalls the have we We from we

North here some well America. lockdown North been China had some some So, specifically, in the in facilities driven we issues in by it’s issues as as America of COVID-related of our

Structurally, of good utilization, where we much have all I we very that as good efficiencies service feel some have moving needed better, indications are in exacerbated into levels. by to where in the we historical March. as of be. gotten our direction, everyone capacity some that are has now moving those the our were to of are things the now And plant, I customers in output, level had. moved we right we mentioned, to want I back key think mentioned, somewhat are have but through, in So, we ability asset what high we get about which And challenges terms to

came had So, suppliers good issue, dealt shortages a Europe, from that there, Latin On no some of some with America. material news specifically mid-quarter. our raw

seem more set particularly guidance that quite us that behind now see was us the level. raw that world. look in dealt at with moving that moved We issues January, a back around have normalized all Europe, So, has it, we if subsided. are suppliers or things those with quarter that, in into frankly, material and we after in much hit and mean and the you this of contractors, I to a number XXXX to we discussed year

we place the pricing deal less significant of more line, and Street incremental deal some the it above which March. hit uncertainty a with. in with had gross we resilience to were of guidance system $XXX came to the margins last in the in we got a is then now post the of we given cost out carefully in we were the first that. that because quarter. came just faced Lauren, lot world, in watch of mid-Feb understanding Listen, increases And faced came can that – have we million the call, And year unforeseen the Let’s terms circumstances that tune incremental little in the billion the we we slightly expected, and are January $X.X bit with to into of with to visibility, But actually the everyone put seeing. where with into or current anything happen more in below

anticipate half of been that back when that’s the all in issue cost did we not in We initially visibility benign the had set war, change. the We single So, with guidance, of biggest more those. us. for terms obviously, becoming

became in the visibility different that today. and hence guidance dramatically the our the change us we for quarter exited we as have communicated So,

the to There relative saw if Latin in chain could last the to one going supply issues was your over America with in just plant quarters couple of impact America, Lauren, back I lockdowns add really, some thing, Latin Asia. we comment.

So, referring the prepared to that what was we were in commentary.

we themselves, we LatAm gone But source quite significant do. to The would do they have anything been consider product to to But no, we out a know, obviously continue Latin relative costs they to bit able don’t but nothing up, you for have of that of what as need have America. there.

We from will our ISI. with question go Evercore next Javier Escalante to

be feels be Hi your say supply Lauren’s and everyone. when you problem because and then you really that the speak is that it out toothpaste I global. is two helpful and talk would Asia very question. to it’s have of And out that toothpaste And America seems This about problems in sourcing the Latin it U.S. toothbrushes about you in that toothbrushes. Colgate, things that – not on Mexico. of is chain

So, between that understanding little disconnect a your the and our I think bit supply a chain of of conversation. there is

is then supply is So, that America, no supply that toothbrushes America? not into in Latin finally, you chain U.S.? dropped. if are you chain America, in delivering issues, could basically said it you what are volumes clarify, the And in had coming the U.S., And Latin through but Mexico in Is that issues? now it Latin into the Asia

be So, the seems fine. you to think America because drop, if so sales they Procter and XX%, Unilever, organic why about consumer grew in is Latin in the

you. So, it your Latin that America lagging what is Thank – is that why competitors? is

Sure.

Okay.

an back address America. we Asia in is that Asia of in subsequently supply a that saw the in Let to of quarter source global predominantly on-shelf given and migration Latin first quarter global impact where quarter, of decisions and the toothbrush supply first fourth into some Toothbrushes, improve first lockdowns have inventories sourcing in when world, the refill ability. chain me our chain the as toothbrushes back impacted Obviously, out and having more the as accelerated U.S., XXXX we of taken here first. foremost, ensure the the in acutely well online, supply and that out we around most we in business came those

but of where fulfill our by for bring acutely business are it order sourcing was in having expediently and there, we – America we to we particularly America, Europe, issues toothbrush in that. impacted addressed had in likewise some demand. America, product So, business, in our faced That Latin to the North more North of likewise some

business very has that a very, efficiently. been historically balance toothpaste global a supply chain works Our of

border came we of product the that in of We costs. had about our out more was what Mexico function fulfilling a across It problem. into some challenges as marketplace. It increased. additional we times, our delays some did North at have getting rates a America, freight of Mexico, of but was we Given happening out Obviously, bringing the they function was increased were that product. product the that were systemically for not earlier, of talked the across demand

So, global. our and toothpaste years been for supply chain years. is It us advantage for has competitive a

market creates one transfer We bottleneck one in as and market quite you a market, a little obviously able to it implications consistently bit efficiently. delays now of for in supplier have from are But you. quite to one or another products

past I live supply We to locations the that we dealing of today, in efficiently today. have the with network been sourcing decisions world we much markets to we ensure in needed. position the taken in local having are exists a in the related have think uncertainty where And than are better that that we chain are that

has for that high-double historically shortfall pricing where real a Latin consistent come for Brazil. we think We been us only overall, bit, took we digit listen, was are pricing, market. seen. saw America, have little So, we in good with which XX% On volumes Latin America in in the off We a place. volumes volumes in

positive positive the taken have volumes board. significant We had across Mexico pricing. pricing,

we consistent it some of in taken But would Brazil, we the have this in unfolds. the will seen we with how okay, attribute is is Brazil really see saw I because So, pricing. rest the the to and significant of have past quite we when softness business what

with will next Mark we Astrachan from question Stifel. take our And

understand the go back for I to Thanks and good I pricing wanted strategy everyone. to ‘XX. try morning and guess

And It at in seems bit and to was which in a you for so a but more least others bigger, then. guess a comment down to but it better more the still all $XXX January, back obviously guided, got me, So, I year. margin number was headwind or stronger gross being it cost earlier you it million your about gotten proactive, lot. still were big talked has seems proactive obviously pricing was than

I price, volumes taking guess in that assumptions more relative peers In So, a ‘XX? other the you I be has your words, in there your calculus am to what there. change lag about some on was how or think now to decision changed kind should And how curious, seemingly we for do thinking about we are pricing. of pricing volume

volume could you. right kind not? So, whether a of result? we change talk or And that’s if decision you the first Thank of then the as how think all, about about

Yes. we move we things, into and quarter, as in will lead ahead we terms in little but negotiations quarter, are the second What as obviously, delays first sell the U.S. pricing good is we were think happened we did the competition. as us and in The the behind late earlier saw I fully see in some quarter. bit news our We mentioned of we execution business pricing exited ultimately our in a I in of the which prepared little reflected how a the Europe, those unfolded. arguably, core of how those in remarks, given of annual that pricing

U.S. follow, ultimately competition seen we but have We the in lead did

little obviously, we beyond costs felt to pretty got bit have quickly, we moved what expected. we So, the like it a but

cost So, see That which would of half coming in gross when line with through was initial March were would thought. we the thought the the assumption. come through. February-March kind what margin, all deliver year. obviously, – sequential accelerated the pricing most the increases back we back mid-February, But more changed things of to the quarter, of through balance We gross obviously we in came the margin of

now more taken pricing. subsequently We have

as move obviously through in the be world more we in part And the back of pricing, re-launches pricing the will year. accelerated taking through through we as We half. developed are world developing the looking particularly of move the the of part also balance we at

from go We Jefferies. to our Grundy will with next Kevin question

we Noel, covered this. Great. Lauren’s I I question morning Thanks. think up some everyone. wanted and others. to a pick kind Good of lot of on

can downward anyone the same But it’s how It’s your right, challenging outlook the appreciate of not of for everyone degree at the the peers Just more broadly environment versus everyone, for is. so even a time. lost in and moment. staples, revision difficult

we you cost So, can product of savings, feel spend conservatism issues. without on guidance. on FP&A, being redundant supply with lot the on productivity what your the and scope But move basket, you chain supply chain, time of pricing, around controls a like do your because speed in different categories, or materially scope headwinds which is about business, stance commodity

As unique seen guys Thanks following the are you relative peers, you very that that. downward your a what about at business look you revision which think we to I sharper closely, is causing for know do elsewhere? that’s have than

obviously us right is cost which have now is for uniquely we that of Kevin. move to goods, different fats significant part significant that think business our the historically I Listen, of upfront. benign our Thanks significantly, stated things it our structure Sure. in What things and relative have in oils. that like up addition quite a to we is quite in moved And pricing. cost have of glycerin, doubled been have seen

driver So, big fats here. and oils is the

costs that. of assumed have those the through others stay levels the and know that current slightly assuming increase year. are at don’t will the We how balance I

levels we less assumption year. increase obviously we of oil – behind the be result, us. have ultimately have we short-term into a or seen we a logistics taken move of slight different That may more As with we than balance taken. current move cost have others at through the XXXX, will supply global our think chain, as And given implications our the have which on a

difference. predominantly that’s the biggest So,

us We have pricing. very to that strong brands allow take

consistently carefully. to year-in, particularly that our pricing, seen and that, ability against year-out, take the but part continue very will the environment the developing we execute consumer world, we watch have to in of will You

continue We given we That’s feel for the the top maintaining in X% That’s growth. investments that we us hence business. very will piece. why to our line accelerate our to X% investments be about good that the in to organic, maintaining important are

it’s So, that. really

Our to that – initiative, the to that, know, we overhead just talk we our productivity have as global have logistics structure, you launched.

year. the through savings in back We that the half this of are accelerating

biggest We am again, are leverage whether or point. at don’t to down through as need you see stage, Our to we environment sure the But those of or year. the assuming our I current just back continued but in feel difference visibility a slightly it’s very made accelerate levels made quarter, that the continue they will a at that assuming, – the half very, inflationary changing actually is prudent be assumptions others and at assumptions move of for this create above. sales business not that have were operating the or the that any costs this year. we overheads costs get will we are which we we the direct through the the that balance costly from the

from Andrea JPMorgan. last Our is with question Teixeira

follow-up. taking for Thank my you

good the given you any Is trying there. given was to on in probably I you terms would the some Brazil was touch, that what currencies you pricing and side there care the Just understand more to more mentioned auto your perhaps of competitive the the pricing went on that there to that volume think hoping favor, or took – share it dollar appreciate if the defend or elasticity. can care, kind you at it that was make news point? price your comment, like, share I just ways are I plans of more personal than that’s Noel, the

And We it very Sure. very, it’s I was Listen, took come obviously in pricing saw in we more the a volumes the quite bit quickly, as days. early frankly, business. personal. off little mentioned,

points Our in shares are basis actually XX market in up toothpaste Brazil.

you our again, launched seen well in heard about coming performing have We the performing is which core have the and MX. well we market, Sorriso Colgate in we business, which to back overall, is re-launched market. strategy, the talk So, have very Total, us

so mix, shares market are actually up. So, market

up them we that would expected. in pretty anticipate be for when these we And have the that taken volumes, the of But we are. consistent position in We are very falloff about are, our less the pricing to good see will about have P&L. but got obviously, feel but marketplace, competition closely, in where will we feel terms decide. at where given more that have will good we we follow the that, We will or or but historically, leadership watch we levels pricing we

Noel, today’s closing That or for concludes the additional turn question-and-answer will back session. remarks. any you I call to

No. everyone. Thanks

appreciation Let my all people. me extend to again Colgate

out we all with you and call who prayers the opportunities that can provide specifically employees me our our your the are in and support continue possible with you. we to everyone. and thoughts Ukraine, your and Let health you, safety Thanks

We will talk soon.

your for you participation. Thank call. today’s conclude does This

may disconnect. now You