“These positive experiences and our proven track record of implementing a multitude of savings programs and reducing costs year after year give us confidence in the ability of this program to fund even higher levels of investment behind Colgate’s brands and strengthen our overall commercial capabilities around the world.”
Specifically, reinvestment will be focused in the following four areas:
- New Product Innovation and Brand Building – Continuing our strong investment in research and product development to ensure a robust pipeline of new products supported by effective integrated marketing campaigns.
- Enabling Technology and Analytics – Intensify the use of existing and new technologies to enhance planning systems, real-time collaboration and paperless interaction, within the Company and with customers and suppliers, and to enhance analytic capabilities in support of consumer insights, brand management and commercial decision making.
- Digital Engagement – Increasing consumer engagement and loyalty by expanding our web-based capabilities, including mobile and social media and e-commerce.
- Emerging Markets – Seizing the opportunities reflected by this growing consumer base with targeted programs to increase consumer engagement, expand distribution and improve in-store execution.
Mr. Cook concluded, “As we look ahead to 2013, while our global budget process is still in its initial stages, based on the Company’s current growth momentum, our confidence in this new efficiency program in addition to our ongoing funding-the-growth and strategic worldwide pricing efforts, we are planning for a return to our long-term target of double-digit earnings per share growth on a dollar basis and another year of gross margin expansion, excluding charges related to the 2012 Restructuring Program.”
At 11:00 a.m. ET today, Colgate will host a conference call to elaborate on third quarter results and the announced restructuring program. To access this call as a webcast, please go to Colgate’s web site at http://www.colgatepalmolive.com.The following are comments about divisional performance. See attached Geographic Sales Analysis and Segment Information schedules for additional information on divisional sales and operating profit.