Colgate-Palmolive (India) (500830) Investor Day 2024 summary

Performance highlights and market context

• Achieved seven consecutive quarters of above 5% growth, with the last three quarters in double digits, outpacing both overall and listed FMCG peers in India; topline grew 11.4% in H1 FY24 and 5.4% in Q2 FY24-25.

• Gross margins remain strong at 68-70%, with H1 FY24-25 at 69.3% (+90 bps y-o-y); EBITDA margin at 32.5% (+10 bps y-o-y), at the upper end of the historical range.

• Net profit after tax for H1 FY24-25 was ₹759 crore, up 23.7% year-on-year, with strong cash generation and high return on capital employed.

• Brand strength reinforced, with Colgate as the top-of-mind brand for 70% of consumers, high awareness and consideration, and leadership in oral care expertise.

• Urban market growth is slowing, while rural growth is sustaining but plateauing; toothbrush category shows rural outpacing urban.

Strategic pillars and business initiatives

• Four strategic pillars: drive oral care category growth, premiumize through science and technology, lead in toothbrushes/devices, and diversify into personal care.

• Oral Health Movement (OHM) launched, leveraging AI-powered dental screening via WhatsApp and QR codes on 800 million packs, aiming for mass consumer engagement and preventive care.

• Bright Smiles, Bright Futures program expanded to 10 million children and 23,000 schools, with partnerships covering 24% of India's population.

• Premiumization focus with Colgate Total (new packaging, lower entry price, new variants), Visible White Purple (innovative whitening), and regime-based toothbrushes; premium mix growing at 2x the rest of toothpaste portfolio.

• Palmolive personal care brand sees double-digit growth, with a narrowed focus on body and hand wash and an active innovation pipeline.

Technology, execution, and enablers

• Digitization across sales, supply chain, and marketing, including AI/ML demand forecasting, image recognition for shelf management, and digital twins in plants.

• 15% increase in assortment at 1.7 million stores via tech-enabled distribution; stores with tech enablement grow twice as fast.

• 100% of products now parity or superior to competition; 90% of packaging upgraded; 90% of advertising in top FMCG quartile.

• Science-backed innovation with 900 patents granted per year and over 100 clinical trials.

• Strong talent development, with global exposure and partnerships with leading universities.