Colgate-Palmolive Company CL continues to be a favorite among investors, thanks to its strategy of strengthening leadership in key product categories through core business innovation, exploring growth in adjacent categories, and expanding into new markets and channels. The company has been consistently gaining from its pricing and productivity initiatives.

Colgate is recognized as a top consumer goods company with a global household penetration rate of 61.6%. Aggressive pricing actions, robust consumer demand, and solid business momentum have been the keys to the earnings success of this global leader in the oral care hygiene market.

Shares of this Zacks Rank #3 (Hold) company have gained 39.3% in the past year compared with the industry’s 18.8% growth. The consumer goods company also compared favorably with the sector’s growth of 7.8% and the S&P 500’s rally of 31.5%.

Colgate’s One-Year Stock Performance

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CL’s Growth Strategies in Focus

Colgate is well-placed to reach new heights with the smooth execution of its growth strategies. The company has been gaining from strong pricing and the benefits of the funding-the-growth program and other productivity initiatives. The company has been implementing aggressive pricing for the last few quarters, which, along with accelerated revenue growth management plans, aided Colgate’s second-quarter 2024 organic sales.

In the second quarter, the company reported a volume increase in every operating division, aided by higher brand penetration to drive category gains. Total volumes rose 4.7% year over year on an organic and reported basis, attributed to growth across all divisions. The quarter marked the return of Hill’s and the Asia-Pacific segments to volume growth, while North America, Africa/Eurasia and Europe experienced sequential increases in volume.

The company is progressing well with its innovation strategy focused on growing in adjacent categories and product segments. It prioritizes the premiumization of its Oral Care portfolio through major innovations. Backed by premium innovation, products including CO. by Colgate, Colgate Elixir toothpaste and Colgate enzyme whitening toothpaste have been performing well. Also, at-home whitening and professional whitening products bode well.

In response to the growing consumer preference for organic and natural ingredients, the company is expanding its Naturals range, including Naturals toothpaste. It continues to expand its Naturals and Therapeutics divisions. The acquisition of Hello Products LLC has further strengthened Colgate’s market position. The company has also seen market share growth for Hill’s Science Diet and Hill’s Prescription Diet in specialty channels, driven by science-led innovation and enhanced brand support.

For 2024, Colgate anticipates net sales growth of 2-5%, driven by a higher organic sales view. It expects organic sales growth of 6-8% for 2024.