Time for your winner’s smile

Last Updated: 25. Januar 2024By

Everyday products also have charm for investors. Why? Customers buy them out of habit. Like toothpaste from Colgate. We have analyzed the entire company for you. Find out if it’s worth investing or if you should flee. Colgate-Palmolive was founded in 1806 and is the world leader in oral and dental care.

In addition, mouthwashes and dental floss are offered. Brands include Colgate and Dentagard. The company is also active in body care with Palmolive (shower gel, soap, bath foam, shaving cream), household care with brands such as Softlan, Ajax and Palmolive (fabric softener, cleaner, dishwashing detergent), and in pet food.

Solid, but nothing more Colgate has reported solid figures for the first 9 months. Revenue increased by 10.5% to $14.5 billion. However, profit fell by 11% to $1.58 billion. Operating income increased by 8% to $2.9 billion. The stable demand and price increases were mainly responsible for the higher revenue. In Europe, the inflation rate was 12%. The US company benefits from offering products in different price segments and being the global market leader in these segments.

Colgate has a worldwide market share of 41% in toothpaste products alone. For toothbrushes, it is still a respectable 31%. Colgate uses its market leadership to regulate prices, resulting in a robust business and low volatility. The price increases have also not led to a significant decrease in sales.

Light and shadow at Colgate-Palmolive The revenue growth was driven by both segments. The revenue in the pet food segment increased by 20% to $3.17 billion. This reflects the positive impact of acquisitions from the previous fiscal year. The core business of body care/household grew by 6% to $11.33 billion. Colgate continues to invest in building its brands and has significantly increased advertising spending as a result. This is expected to lead to further revenue growth.

In addition, sustainability projects are being promoted. Colgate has signed a 20-year power supply agreement with a solar energy park. The volume covers 100% of the electricity needs in the US. Although this is good news, we currently see little potential for the stock – it is very expensive for low growth. However, the dividend yield of 2.4% is decent.