Colgate-Palmolive (CL) is one of the largest publicly traded personal products companies. The company has a market cap of $63 billion which is large for the personal products industry; larger than Kleenex maker Kimberly-Clark’s (KMB) $43 billion market cap, but significantly smaller than Procter & Gamble’s (PG) $244 billion market cap.
Colgate-Palmolive has an extremely long dividend history. The company has paid dividends for 119 consecutive years, and raised its dividend payments for 51 consecutive years. Despite its long-history of success, I was not impressed with the company’s 3rd quarter results last time I analyzed Colgate-Palmolive. See Colgate-Palmolive’s business operations and competitive advantage analyzed in part 49 of the 54 part Dividend Aristocrats In Focus series.
Business Overview
Colgate-Palmolive’s business operations are broken down into 2 primary segments: Oral, Personal, and Home Care; and Pet Nutrition. The Pet Nutrition segment has generated 13% of revenue and 13% of operating profit for Colgate-Palmolive through the first 9 months of fiscal 2014. The Pet Nutrition segment operates primarily under the Hill’s Pet Nutrition and Science Diet brand names.
The Oral, Personal, and Home Care segment is Colgate-Palmolive’s largest by far.The segment has generated 87% of the company’s sales and operating profits through the first 9 months of fiscal 2014.
The segment sells well known consumer brand products including:
Colgate, Palmolive, SpeedStick, SoftSoap, Suavatel, and Ajax.
Colgate-Palmolive further divides its Oral, Personal, and Home Care segment into 5 geographic divisions. Each divisions percentage of the segment’s total revenue and operating profit is shown below to illustrate the global diversity of Colgate-Palmolive:
