Colgate-Palmolive commands a market-leading position in oral care
and personal care product categories. We believe that Colgate's
continued focus on product innovation, along with globally
recognized brands and presence in both developed and emerging
economies enables it to utilize the growth opportunities and
consequently boost its profitability. This is evident from the
company's second-quarter 2014 results wherein adjusted earnings per
share came in at $0.73, up 4% year over year and in line with the
Zacks Consensus Estimate. However, we maintain our long-term
Neutral recommendation on the stock as lingering macroeconomic
concerns in Venezuela and Argentina may negatively impact its
financials. In addition, intense competition and a sluggish
economic recovery may undermine the company's performance.
New York City-based Colgate-Palmolive Co. is a global consumer
products manufacturer with a distribution network spanning across
more than 200 countries. The company is the world leader in oral
care products and one of the leading manufacturers of personal care
products. The company follows a closely defined business strategy
to increase its leadership positions in key product categories. The
product categories are further prioritized based on their capacity
to utilize the company's core competencies and strong global
equities at optimal levels in order to deliver sustainable
long-term growth. Colgate-Palmolive operates through two business
segments: (1) Oral, Personal and Home Care and (2) Pet
Oral, Personal and Home Care: The company's portfolio of oral
care products include toothpaste (Colgate, Total), toothbrushes
(Actibrush, Navigator), and other offerings, such as dental floss
and tooth whiteners (Simply White). Personal care items include
deodorants (Speed Stick, Mennen), shampoos (Thermal Spa gel,
Naturals), soaps (Irish Spring, SoftSoap), and other offerings,
such as Colgate shaving cream. Moreover, in 2011, the company added
Sanex brand to its portfolio. The brand has a distinct positioning
around healthy skin with a strong market share in Western Europe.
Household products include dishwashing detergents (Palmolive),
cleaners (Ajax, Fabuloso), and fabric care products (Ajax,
Pet Nutrition: The pet nutrition segment consists of pet food
products for dogs and cats manufactured by Colgate-Palmolive's
subsidiary, Hill's Pet Nutrition (Hill's Science Diet and Hill's
Prescription Diet). The pet products are sold to veterinarians and
specialty pet retailers in over 95 countries.
Given below is the graphical presentation of first-quarter 2014
revenue segment on the basis of product offerings as well as
region-wise revenues of the Oral, Personal and Home Care
Colgate-Palmolive Company (CL): Read the Full
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