Q4 2019 Earnings Call

Please standby we're about to begin.

Welcome to today's Colgate Palmolive Company fourth quarter 2019 earnings Conference call. This call is being recorded and is being somewhat castlight.

Colgate Palmolive Dot com.

For opening remarks, I'd like to turn the call over two senior Vice President Investor Relations.

Please go ahead John.

John Faucher: Thanks, Aaron. Good morning and welcome to our fourth Quarter earnings release conference call. This is John Faucher. Today's conference call will include forward-looking statements. Actual results could differ materially from these statements. Please refer to the earnings press release and our most recent filings with the SEC, including our 2018 annual report on Form 10-K, and subsequent SEC filings, all available on Colgate's website, for discussion of the factors that could cause actual results to differ materially from these statements.

Thanks, Aaron Good morning, welcome to our fourth quarter earnings release Conference call. This is John.

Today's conference call will include forward looking statements actual results could differ materially from these days.

Please refer to the earnings press release, and our most recent filings with the FCC, including our 2018 annual report on form 10-K, and subsequent SEC filings all available on Colgate's website.

For a discussion of the factors that could cause actual results to differ materially from these statements.

Operator: This conference call will also include a discussion of non-GAAP financial measures, including those identified in tables 8 and 9 of the earnings press release. A full reconciliation to the corresponding GAAP financial measures is included in the earnings press release and is available on Colgate's website. Joining me this morning are Noel Wallace, President and Chief Executive Officer, and Henning Jakobsen, Chief Financial Officer. I will begin with some thoughts on our performance in 2019 before moving to our 2020 guidance. We made meaningful progress in 2019 on our path to returning to sustainable, profitable growth. As we said at the beginning of 2019, we increased investment behind our brands and in the capabilities that are required to deliver growth in our changing global markets. We also implemented changes in how we work to streamline our processes and drive empowerment to make us faster.

This conference call will also include a discussion of non-GAAP financial measures, including those identified in tables 8 and 9 of the earnings press release. A full reconciliation to the corresponding GAAP financial measures is included in the earnings press release and is available on Colgate's website. Joining me this morning are Noel Wallace, President and Chief Executive Officer, and Henning Jakobsen, Chief Financial Officer. I will begin with some thoughts on our performance in 2019 before moving to our 2020 guidance. We made meaningful progress in 2019 on our path to returning to sustainable, profitable growth. As we said at the beginning of 2019, we increased investment behind our brands and in the capabilities that are required to deliver growth in our changing global markets. We also implemented changes in how we work to streamline our processes and drive empowerment to make us faster.

This conference call will also include a discussion of non-GAAP financial measures.

Putting that was identified in People's eight nine of the earnings press release.

A reconciliation to the corresponding GAAP financial measures is included in the earnings press release is available on cold wet.

Joining me. This morning are no wallets, President and Chief Executive Officer, and running Jochumsen Chief Financial Officer.

I'll begin with some thoughts on our performance in 2019 before moving to our 2020 Guy.

We made meaningful progress in 2019 on our path to returning to sustainable profitable growth.

As we said at the beginning of 2019, we increased investment behind our brands in the capabilities that are required to deliver growth in our changing global markets.

We also implemented changes in how we work to streamline our processing and drive empowerment to make a softer.

Operator: Those strategic choices have started to pay off, as in 2019 we delivered net sales growth in excess of our initial guidance and organic sales growth at the high end of our initial 2019 guidance range of 2% to 4% and within our long-term target range of 3% to 5%. On a non-GAAP basis, we delivered earnings per share within the guidance range we gave you at the beginning of the year, while our GAAP earnings per share were in excess of our initial guidance. Our free cash flow was up 7% in 2019 due to improved working capital performance and discipline on capital spending. We delivered this performance despite some headwinds from economic uncertainty in markets like Mexico, Brazil, and India. Importantly, we delivered on our commitment to return to growth in China, delivering organic sales growth in both Q3 and Q4.

Those strategic choices have started to pay off, as in 2019 we delivered net sales growth in excess of our initial guidance and organic sales growth at the high end of our initial 2019 guidance range of 2% to 4% and within our long-term target range of 3% to 5%. On a non-GAAP basis, we delivered earnings per share within the guidance range we gave you at the beginning of the year, while our GAAP earnings per share were in excess of our initial guidance. Our free cash flow was up 7% in 2019 due to improved working capital performance and discipline on capital spending. We delivered this performance despite some headwinds from economic uncertainty in markets like Mexico, Brazil, and India. Importantly, we delivered on our commitment to return to growth in China, delivering organic sales growth in both Q3 and Q4.

Those strategic choices and started to pay off doesn't 2019, we delivered net sales growth in excess of our initial guidance.

NFL go up at the high end of our initial 2019 guidance range of 2% to 4%.

Within our long term target range of 3% to 5%.

On a non-GAAP basis, we delivered earnings per share within the guidance range. We did you at the beginning of the year, while our GAAP earnings per share at weren't access of our initial guidance.

Our free cash flow was up 7% in 2019 due to improved working capital performance and discipline on capital spending.

We delivered this performance despite some headwinds from economic uncertainty in markets like Mexico, Brazil and India.

And importantly, we delivered on our commitment to return to growth in China.

From an organic sales growth in both the third and fourth quarters.

Operator: So how did we drive better growth in 2019? Our continued focus on innovating around the core of our business, driving growth in adjacent segments, and expanding our availability in faster growth markets and channels is paying off. We successfully relaunched several of our core franchises. On Colgate Total, we delivered that brand's fastest organic sales growth in several years, led by key markets like the US, Brazil, and Mexico. Hill's continues to deliver strong growth, with major contributions coming from the Science Diet relaunch. In North America, Hill's delivered double-digit growth in Q4, while cycling a double-digit comparison in the year-ago period. We have more core innovation to come in 2020, especially on key oral care and personal care brands. Our performance in faster growing adjacencies has been a significant contributor to our improvement in 2019.

So how did we drive better growth in 2019? Our continued focus on innovating around the core of our business, driving growth in adjacent segments, and expanding our availability in faster growth markets and channels is paying off. We successfully relaunched several of our core franchises. On Colgate Total, we delivered that brand's fastest organic sales growth in several years, led by key markets like the US, Brazil, and Mexico. Hill's continues to deliver strong growth, with major contributions coming from the Science Diet relaunch. In North America, Hill's delivered double-digit growth in Q4, while cycling a double-digit comparison in the year-ago period. We have more core innovation to come in 2020, especially on key oral care and personal care brands. Our performance in faster growing adjacencies has been a significant contributor to our improvement in 2019.

So how do we drive better growth in 2019.

Our continued focus on innovating around the core Barbizon, that's driving growth in adjacent segments and expanding our availability faster growth markets in channels is paying off.

We successfully re launched several of our core franchises.

On Colgate total we delivered that brands fastest organic sales growth in several years led by key markets like the U.S., Brazil and Mexico.

The old continues to deliver strong growth with major contributions coming from the science diet relaunch.

North America guilt delivered double digit growth in Q4 wall cycling a double digit comparison in the geared up here.

We have more coordination to come in 2020, especially on key oral care in personal care brands.

Our performance in faster growing adjacent space has been a significant contributor to our improvement in 2019.

Operator: We delivered growth with new products that appeal to consumers' preferences for products that are more natural and sustainable. We've driven sales and market share growth with our charcoal toothpaste and bamboo toothbrush launches around the world, and Sanex Zero% continues to grow as well. In skin health, EltaMD and PCA Skin both achieved double-digit sales growth for the year. We acquired Filorga in Q3, and we are excited to announce that earlier today we closed our acquisition of the Hello oral care brand. These acquisitions should also contribute to growth going forward. A quick note on Filorga: we are currently reporting Filorga on a one-month lag, so the fourth quarter includes Filorga results only from the closing of the deal in mid-September through the end of November. When we transition Filorga to SAP, we will line up our reporting calendars.

We delivered growth with new products that appeal to consumers' preferences for products that are more natural and sustainable. We've driven sales and market share growth with our charcoal toothpaste and bamboo toothbrush launches around the world, and Sanex Zero% continues to grow as well. In skin health, EltaMD and PCA Skin both achieved double-digit sales growth for the year. We acquired Filorga in Q3, and we are excited to announce that earlier today we closed our acquisition of the Hello oral care brand. These acquisitions should also contribute to growth going forward. A quick note on Filorga: we are currently reporting Filorga on a one-month lag, so the fourth quarter includes Filorga results only from the closing of the deal in mid-September through the end of November. When we transition Filorga to SAP, we will line up our reporting calendars.

We delivered growth with new products that appeal to consumers preferences for products that are more natural unsustainable.

Driven sales and market share growth with our charcoal toothpaste and bamboo toothbrush launches around the world.

I'm, saying, it's <unk> percent continues to grow as well.

In skin health Health N D N P scan both achieved double digit sales growth for the year.

You acquired Florida in Q3, we're excited to announce it earlier today, we closed our acquisition of the Hello oral care Brent.

These acquisitions should also contribute to growth going forward.

Quick note on Florida, you're currently reporting to work on a one month lag. So the fourth quarter includes blogger results only from the closing of the deal in mid September through the end of November.

We transitioned to look at the halfway Pete we will line up our reporting calendars.

Our focus on availability in the faster growth markets in channels have seen up delivered very strong growth in pharmacy club cash and carry in especially ecommerce.

Operator: Our focus on availability in the faster growth markets and channels has seen us deliver very strong growth in pharmacy, club, cash and carry, and especially e-commerce. Our e-commerce organic sales grew 30% in 2019, and we established a new direct-to-consumer business with Hill's to Home, which provides a fast and easy way for veterinarians to sign patients up for prescription diets. It's a new subscription model that increases compliance. We are leveraging the learnings from Hill's new venture into our direct-to-consumer efforts across the rest of our businesses. We also made significant inroads on sustainability during the year. We launched the first-of-its-kind recyclable toothpaste tube, certified by the Association of Plastic Recyclers, which is now available in both Europe and North America.

Our focus on availability in the faster growth markets and channels has seen us deliver very strong growth in pharmacy, club, cash and carry, and especially e-commerce. Our e-commerce organic sales grew 30% in 2019, and we established a new direct-to-consumer business with Hill's to Home, which provides a fast and easy way for veterinarians to sign patients up for prescription diets. It's a new subscription model that increases compliance. We are leveraging the learnings from Hill's new venture into our direct-to-consumer efforts across the rest of our businesses. We also made significant inroads on sustainability during the year. We launched the first-of-its-kind recyclable toothpaste tube, certified by the Association of Plastic Recyclers, which is now available in both Europe and North America.

Oh E Commerce organic sales grew 30% in 29 team, we established a new direct to consumer business with Hills Dom.

Provide the fast and easy way forgot to Marin to sign patient dot the prescription diet.

It's a new subscription model that increases compliance.

We are leveraging the learning from hills need venture into our direct to consumer efforts across the rest of our businesses.

We also made significant inroads on sustainability during the year.

We launched the first of its kind recyclable toothpaste to certified by the association the plastic Recyclers, which is now available in both Europe and North America.

Adam 20, Nike, we have received three zero waste certification on 16 facilities.

Operator: As of 2019, we have received true zero-waste certification on 16 facilities, and we earned our highest recognition ever from the Dow Jones Worldwide Sustainability Index, taking the lead in our industry sector for the first time. Our fourth quarter performance reinforces the progress that I just laid out. We delivered our fifth consecutive quarter of sequential acceleration in organic sales growth, and we returned to gross margin expansion and delivered leverage on our overhead. On a GAAP basis, our gross profit margin in the fourth quarter was up 100 basis points. Excluding the impact of charges from our global growth and efficiency program and acquisition-related costs, our gross profit margin was up 80 basis points. For the fourth quarter, pricing was favorable to our gross margin by 60 basis points.

As of 2019, we have received true zero-waste certification on 16 facilities, and we earned our highest recognition ever from the Dow Jones Worldwide Sustainability Index, taking the lead in our industry sector for the first time. Our fourth quarter performance reinforces the progress that I just laid out. We delivered our fifth consecutive quarter of sequential acceleration in organic sales growth, and we returned to gross margin expansion and delivered leverage on our overhead. On a GAAP basis, our gross profit margin in the fourth quarter was up 100 basis points. Excluding the impact of charges from our global growth and efficiency program and acquisition-related costs, our gross profit margin was up 80 basis points. For the fourth quarter, pricing was favorable to our gross margin by 60 basis points.

And we earned our highest recognize you never can the Dow Jones worldwide sustainability index, taking the lead in our industry sector for the first time.

Our fourth quarter performance reinforces the progress that I just laid out.

Delivered our fifth consecutive quarter of sequential acceleration in organic sales growth.

We returned to gross margin expansion and delivered leverage on our overhead.

On a GAAP basis, our gross profit margin in the fourth quarter was up 100 basis points.

Moving the impact of charges from our global growth and efficiency program and acquisition related costs. Our gross profit margin was up 80 basis points.

The fourth quarter pricing was favorable to our gross margin by 60 basis points.

Operator: Raw materials were unfavorable by 270 basis points, almost entirely offset by productivity from our Funding the Growth initiatives of 260 basis points. Other, primarily mix from Filorga, was favorable by 30 basis points. Our advertising spending was up 13% for the fourth quarter, finishing up 6.5% for the full year. In the fourth quarter, excluding the charges from our global growth and efficiency program and advertising, our SG&A was down 70 basis points year over year, as we benefited from operating leverage, productivity savings, and lower logistics costs. So as we close the door on 2019, our focus is to advance on this progress through 2020.

Raw materials were unfavorable by 270 basis points, almost entirely offset by productivity from our Funding the Growth initiatives of 260 basis points. Other, primarily mix from Filorga, was favorable by 30 basis points. Our advertising spending was up 13% for the fourth quarter, finishing up 6.5% for the full year. In the fourth quarter, excluding the charges from our global growth and efficiency program and advertising, our SG&A was down 70 basis points year over year, as we benefited from operating leverage, productivity savings, and lower logistics costs. So as we close the door on 2019, our focus is to advance on this progress through 2020.

Materials were unfavorable by 270 basis points almost entirely offset by productivity from our funding the growth initiatives of 260 basis points.

Other primarily mix from Florida was favorable by 30 basis points.

Our advertising spending was up 13% for the fourth quarter, finishing up 6.5% for the full year.

In the fourth quarter, excluding the charges from our global growth and efficiency program and advertising arrest you know it was down 70 basis points year over year as we benefited from operating leverage productivity savings and lower logistics costs.

So if we close the door on 2019, our focus is to advance on this progress Rue 2020.

For 2020, we expect net sales growth of 4% to 6%.

Operator: For 2020, we expect net sales growth of 4% to 6%, driven by organic sales growth in the 3% to 5% range, consistent with our long-term targets: a 1% to 2% benefit from the acquisitions of Filorga and Hello, and a modest negative impact from foreign exchange. We expect gross profit margin expansion in 2020, driven by the underlying business, as well as the mixed benefits from Filorga. We expect positive pricing and the continued strength of our productivity initiatives to more than offset modest raw materials inflation. We will continue to invest behind our brands to maintain organic sales growth, not just in terms of advertising, which we expect to be up year over year, but also in building key growth capabilities in areas like innovation and data and analytics.

For 2020, we expect net sales growth of 4% to 6%, driven by organic sales growth in the 3% to 5% range, consistent with our long-term targets: a 1% to 2% benefit from the acquisitions of Filorga and Hello, and a modest negative impact from foreign exchange. We expect gross profit margin expansion in 2020, driven by the underlying business, as well as the mixed benefits from Filorga. We expect positive pricing and the continued strength of our productivity initiatives to more than offset modest raw materials inflation. We will continue to invest behind our brands to maintain organic sales growth, not just in terms of advertising, which we expect to be up year over year, but also in building key growth capabilities in areas like innovation and data and analytics.

Driven by organic sales growth in the 3% to 5% range.

System with our long term targets.

1% to 2% benefit from the acquisitions that full Oregon Hello.

And a modest negative impact from foreign exchange.

We expect gross profit margin expansion in 2020, driven by the underlying business as well as the mix benefits in Florida.

We expect positive pricing and the continued strength of our productivity productivity initiatives to more than offset modest raw material inflation.

We will continue doing that behind our brands to maintain organic sales growth not just in terms of advertising, which we expect to be up year over year, but also in building key growth capabilities in areas like innovation and data and analytics.

Operator: We expect to drive leverage through the rest of our cost base through a combination of top-line growth, cost discipline, productivity, and mix. These investments are crucial not only to sustain organic sales growth but also to get our market shares growing again. Our growth in non-measured channels is very strong, and this is a key part of the strategy we've talked about all through 2019. We are focused on improving our overall share performance. This is particularly true in North America, where we think a share turnaround in tracked channels is still a few quarters away. Accelerating our innovation efforts, particularly in premium segments, will be the key factor in delivering better market shares. Interest expense should be up slightly in the year due to the increased debt from Filorga and the Hello transactions.

We expect to drive leverage through the rest of our cost base through a combination of top-line growth, cost discipline, productivity, and mix. These investments are crucial not only to sustain organic sales growth but also to get our market shares growing again. Our growth in non-measured channels is very strong, and this is a key part of the strategy we've talked about all through 2019. We are focused on improving our overall share performance. This is particularly true in North America, where we think a share turnaround in tracked channels is still a few quarters away. Accelerating our innovation efforts, particularly in premium segments, will be the key factor in delivering better market shares. Interest expense should be up slightly in the year due to the increased debt from Filorga and the Hello transactions.

We expect to drive leveraged to the rest of our cost base through a combination of topline growth.

Cost discipline productivity index.

These investments are crucial not only to sustain organic sales growth, but also to get our market share as growing again.

Our growth in non measured channels is very strong and this is a key part of the strategy. We've talked about all through 2019, we are focused on improving our overall share performance.

This is particularly to really North America, where we think a share turnaround in track channels, it's still a few quarters away.

Accelerating our innovation efforts, particularly in premium segment will be the key factor in delivering better market shares.

Interest expense should be up slightly in the air due to the increase that some Florida and Hello transactions.

Operator: We expect our tax rate to be between 24.5% and 25.5% on both a GAAP basis and excluding acquisition costs. On a GAAP basis, based on current spot rates, we are planning for a mid to high single-digit increase in earnings per share. Excluding charges resulting from the global growth and efficiency program, acquisition-related costs, the benefit from a value-added tax matter in Brazil, and the benefit from Swiss income tax reform in 2019, based on current spot rates, we are planning for a low to mid-single-digit increase in earnings per share. At this point, it seems certain that there will be a negative impact from the coronavirus on our businesses in China and the total company for at least Q1. While we expect it to be temporary, it is still too early to quantify the impact, and therefore this has not been included in our guidance.

We expect our tax rate to be between 24.5% and 25.5% on both a GAAP basis and excluding acquisition costs. On a GAAP basis, based on current spot rates, we are planning for a mid to high single-digit increase in earnings per share. Excluding charges resulting from the global growth and efficiency program, acquisition-related costs, the benefit from a value-added tax matter in Brazil, and the benefit from Swiss income tax reform in 2019, based on current spot rates, we are planning for a low to mid-single-digit increase in earnings per share. At this point, it seems certain that there will be a negative impact from the coronavirus on our businesses in China and the total company for at least Q1. While we expect it to be temporary, it is still too early to quantify the impact, and therefore this has not been included in our guidance.

We expect our tax rate to be between 24, and a half in 25.5% on.

On both the GAAP basis, and excluding acquisition costs.

On a GAAP basis based on current spot rates, you're planning for a mid to high single digit increase in earnings per share.

Excluding charges, resulting from the global growth and efficiency program.

Acquisition related costs.

The benefit from a value added tax matter in Brazil, and the benefit from Swift income tax reform in 2019 based on current spot rates, you're planning for a low to mid single digit increase in earnings per share.

At this point it seems certain that there will be a negative impact from the Corona virus on our businesses in China and the total company for at least the first quarter.

Well, we expected to be temporary, but it's still too early to quantify the impact and therefore this is not included in our guidance.

Operator: We expect to be in a position to provide an updated CAGNY as well as on our first quarter call. We believe our plan for this year appropriately balances our improved performance, our need to sustain organic sales growth, our focus on driving costs out of our P&L, and the uncertainties that exist in a fairly volatile world. And here to give you his thoughts on 2020 is Noel. Thanks, John, and happy New Year, everyone. As John discussed, we made meaningful progress in 2019. We grew volume in organic sales in every division. We delivered organic sales growth in all four of our categories: oral care, personal care, home care, and pet nutrition. In our oral care business, we grew organic sales mid-single digits in the year, led by our toothpaste business.

We expect to be in a position to provide an updated CAGNY as well as on our first quarter call. We believe our plan for this year appropriately balances our improved performance, our need to sustain organic sales growth, our focus on driving costs out of our P&L, and the uncertainties that exist in a fairly volatile world. And here to give you his thoughts on 2020 is Noel.

Expect to be in addition to provide an update academy as well as on our first quarter call.

We believe our plan for this year appropriately balances, our improved performance or need to sustained organic sales growth our focus on driving costs out of RPL.

And the uncertainties that exist in a fairly volatile world.

And here to give you his thoughts on 2020, there's no.

Noel Wallace: Thanks, John, and happy New Year, everyone. As John discussed, we made meaningful progress in 2019. We grew volume in organic sales in every division. We delivered organic sales growth in all four of our categories: oral care, personal care, home care, and pet nutrition. In our oral care business, we grew organic sales mid-single digits in the year, led by our toothpaste business.

Thanks, John and happy New year, Edwin as John discussed to you made meaningful progress and 29 team. We grew volume inorganic shelves in every division.

Libert organic sales growth in all four of our categories oral care personal care home care and pet nutrition.

Okay business Weve organic sales mid single digits in the year led by our toothpaste business and we closed out the year with our highest importantly rate organic sales growth more than three years.

Operator: We closed out the year with our highest quarterly rate of organic sales growth in more than three years. We know we're in 2020 now, and we have more work to do. Here are my thoughts on our top three priorities for this year. The first is premium innovation to drive growth. We delivered successful innovation last year by focusing on our core, adjacencies, and new channels. Markets, categories, consumer preferences are changing, and premium is winning. Still, a lot of opportunity for us in whitening, lifestyle, therapeutic, new forms in pet like wet, and importantly, products that are more sustainable and more natural. We're deeply excited about the Hello acquisition, given the potential we see for that brand on top of our core business. Obviously, skin health is a big area of opportunity for us.

We closed out the year with our highest quarterly rate of organic sales growth in more than three years. We know we're in 2020 now, and we have more work to do. Here are my thoughts on our top three priorities for this year. The first is premium innovation to drive growth. We delivered successful innovation last year by focusing on our core, adjacencies, and new channels. Markets, categories, consumer preferences are changing, and premium is winning. Still, a lot of opportunity for us in whitening, lifestyle, therapeutic, new forms in pet like wet, and importantly, products that are more sustainable and more natural. We're deeply excited about the Hello acquisition, given the potential we see for that brand on top of our core business. Obviously, skin health is a big area of opportunity for us.

We know weren't 2020 now we have more work to do so you're my thoughts on our top three priorities for this year.

The first is premium innovation to drive growth.

Deliberate successful innovation last year by focusing on our core adjacent she's a new channels, but markets categories consumer preferences are changing and premium is winning.

Still alive opportunity for us and whitening lifestyle therapeutic forms and stuff like wet and importantly products that are more sustainable and more natural we're deeply excited about hello acquisition, given the potential leasing for that Brad on top of our core business.

And all that keeps getting health is a big area of opportunity before us.

Operator: Lastly, while we've improved our speed of innovation, we need to get faster. We're aggressively cutting the time it takes innovation to reach the market, and you'll see that play out over 2020. Our second priority is becoming more digital and data-driven in everything we do commercially. Continuing on innovation to get faster, we need to use digital tools to replace our traditional testing methods in order to speed up our innovation. We're using analytics to more effectively target our digital spending and drive a higher ROI. We're accelerating our e-commerce business by becoming more data-driven. We're sharing learning across our businesses and geographies, and we're co-locating Colgate and Hill's businesses to share best practices and drive efficiencies. Finally, delivering productivity across the P&L through new ways of working. Digital plays a part here as well.

Lastly, while we've improved our speed of innovation, we need to get faster. We're aggressively cutting the time it takes innovation to reach the market, and you'll see that play out over 2020. Our second priority is becoming more digital and data-driven in everything we do commercially. Continuing on innovation to get faster, we need to use digital tools to replace our traditional testing methods in order to speed up our innovation. We're using analytics to more effectively target our digital spending and drive a higher ROI. We're accelerating our e-commerce business by becoming more data-driven. We're sharing learning across our businesses and geographies, and we're co-locating Colgate and Hill's businesses to share best practices and drive efficiencies. Finally, delivering productivity across the P&L through new ways of working. Digital plays a part here as well.

Lastly, while we've improved our speed of innovation, we need to get faster aggressively probably in the time. It takes innovation to reach the market and you'll see that play out over 2020.

Our second priority is becoming more digital and data driven in everything we do commercially.

Continuing on innovation to get faster.

Digital tools to replace our traditional testing methods in order to speed up or innovation.

Well using analytics to more effectively target hard digital spending and drives a higher ROI.

We're accelerating our ecommerce business by becoming more data driven we're sharing learning across our businesses and geographies ever co located Colgate and hills businesses to share best practices and drive efficiencies and finally delivering productivity across the P. now the new ways of working.

Digital plays a part here as well.

Operator: Projects like our global move to S/4HANA will allow us to simplify and standardize processes and move resources toward areas that drive real growth. In our supply chain, we have opportunities for more automation and robotics to drive more savings. We're enhancing our productivity culture so our Colgate employees can continue to deliver our best-in-class Funding the Growth program, along with tackling other cost opportunities to drive efficiencies. So those are our top three priorities we're focused on for 2020: more premium innovation to drive our growth, digital and data to make us faster and smarter, and productivity to drive our margins. Now I'll be happy to take any questions. Ladies and gentlemen, today's question-and-answer session will be conducted electronically for the telephone audience.

Projects like our global move to S/4HANA will allow us to simplify and standardize processes and move resources toward areas that drive real growth. In our supply chain, we have opportunities for more automation and robotics to drive more savings. We're enhancing our productivity culture so our Colgate employees can continue to deliver our best-in-class Funding the Growth program, along with tackling other cost opportunities to drive efficiencies. So those are our top three priorities we're focused on for 2020: more premium innovation to drive our growth, digital and data to make us faster and smarter, and productivity to drive our margins. Now I'll be happy to take any questions.

Projects like our global moved to ask for Hannah will allow us to simplify and standardize processes and move resources toward areas that drive real growth in.

In our supply chain, we have opportunities for more automation robotics to drive more savings and were hatching our productivity culture shock Colby voyage can continue to deliver our best in class funding the growth program, along with talking other cost opportunities to drive efficiencies. So those are a top three priorities we're focused on for 2000.

20, more premium innovation to drive our growth digital and data and make us faster and smarter productivity to drive our margins and I'll be happy to take any questions.

Ladies and gentlemen, today's question-and-answer session will be conducted electronically for the telephone audience. If you'd like to ask a question, you may do so by pressing the star or asterisk key followed by the digit one on your touch-tone telephone. We also ask that if you are listening to the conference on the internet, that you please turn down the volume on your computer speakers when asking a question. Once again, if you'd like to ask a question, that is star one. We'll take our first question from Steve Strycula with UBS.

And ladies and gentlemen, today's question and answer session will be conducted electronically for the telephone audience, if you'd like to ask a question you may do so by pressing the star or asterisk you followed by the did you want on your Touchstone telephone.

Operator: If you'd like to ask a question, you may do so by pressing the star or asterisk key followed by the digit one on your touch-tone telephone. We also ask that if you are listening to the conference on the internet, that you please turn down the volume on your computer speakers when asking a question. Once again, if you'd like to ask a question, that is star one. We'll take our first question from Steve Strycula with UBS. Hi, good morning. So my first question would be, how should we think about, with the inclusion of new brands such as Hello, how do we think about your ability to manage category assortment within oral care as you kind of build it forward? I think John mentioned the desire to premiumize some of the North American business as prepared for March.

Also said if you're listening to the conference on the Internet. Please turn down the volume on your computer speakers when asking a question once again, if you'd like to ask your question that a star one.

Well take our first question from Steve Stricker.

Steve Strycula: Hi, good morning. So my first question would be, how should we think about, with the inclusion of new brands such as Hello, how do we think about your ability to manage category assortment within oral care as you kind of build it forward? I think John mentioned the desire to premiumize some of the North American business as prepared for March. So how do we think about namesake Colgate returning to growth in the United States and balancing that with growth platforms such as Hello and Tom's?

Yes.

Hi, good morning.

So my first question would be.

It's how should we think about what the inclusion of new brands such as Hello, How do we take it out.

Ability to manage category assortment with an oral care as kind of builders forge. Thank Jon you mentioned desire to Premiumize some of the North American business on his prepared remarks. So how do we think about namesake Colgate returning to growth in the United States in balancing that with growth platforms, such as shallow and John.

Operator: So how do we think about namesake Colgate returning to growth in the United States and balancing that with growth platforms such as Hello and Tom's? Yes, Steve, thanks, and good morning. So clearly, as you look at our portfolio around the world, we have had a history of managing multiple brands and doing it quite successfully. Obviously, the Tom's brand here in the US has been a successful growth driver over the last couple of years. And what's so exciting about the Hello brand is, given its positioning, it really complements our entire portfolio extraordinarily well. It's obviously on a lifestyle-type brand and a free-from-type positioning, skews very high amongst millennials and Gen Z, where some of our other brands don't perform that well.

Noel Wallace: Yes, Steve, thanks, and good morning. So clearly, as you look at our portfolio around the world, we have had a history of managing multiple brands and doing it quite successfully. Obviously, the Tom's brand here in the US has been a successful growth driver over the last couple of years. And what's so exciting about the Hello brand is, given its positioning, it really complements our entire portfolio extraordinarily well. It's obviously on a lifestyle-type brand and a free-from-type positioning, skews very high amongst millennials and Gen Z, where some of our other brands don't perform that well.

Yeah actually thanks, and good morning show clearly as you look at our portfolio around the world, which had a history of managing multiple brands are doing a quite successfully obviously the Tom the brand or here in the U.S.. It's been a successful growth driver over the last couple of years.

And what's so exciting about Hello, Brad is given its positioning it really complements our entire portfolio extraordinarily well, it's obviously on a on a a lifestyle tied brand in a free from type positioning skews, a very high amongst millennials in Gen GE, where some of our other brands don't don't perform that well so.

Operator: So as we look to manage this brand, particularly in North America and around the world, we think it's uniquely positioned in terms of delivering incremental growth to the core franchise. As we saw in 2019, we continue to accelerate oral care growth across the business, and last year was one of the better years we've had on oral care, particularly in toothpaste. And so we're very excited about what Hello is going to bring to the business. We've shown historically we know how to integrate acquisitions and run brands and portfolios with multiple brands in them, and that will be the case for us in 2020 with Hello. We'll go next to Lauren Lieberman with Barclays. Thanks, good morning. So very interesting that you did not give a gross margin target for 2020.

So as we look to manage this brand, particularly in North America and around the world, we think it's uniquely positioned in terms of delivering incremental growth to the core franchise. As we saw in 2019, we continue to accelerate oral care growth across the business, and last year was one of the better years we've had on oral care, particularly in toothpaste. And so we're very excited about what Hello is going to bring to the business. We've shown historically we know how to integrate acquisitions and run brands and portfolios with multiple brands in them, and that will be the case for us in 2020 with Hello.

As we look to manage this brand.

Okay, and North American around the World, we think its uniquely positioned and in terms of delivering incremental growth because the core franchise. As we saw in 2019, we continue to accelerate oral care growth across the business and last year was one of the better years, we've had on all care, particularly in toothpaste and so we're very excited about what.

Well I was going to bring to the business. We've shown historically, we know how to integrate acquisitions and run brands and portfolios with multiple brands and and that will be the case for Sun 2020 with Hello.

Operator: We'll go next to Lauren Lieberman with Barclays.

Well go next to Lauren Lieberman with Barclays.

Lauren Lieberman: Thanks, good morning. So very interesting that you did not give a gross margin target for 2020. So I wanted to know if you could just sort of address that change, if we should think about that as maybe being a bit of a different approach at Colgate, whereas gross margins have always been held up as sort of a must-have. So if you can just talk a little bit about that, that would be great. Thanks.

Thanks, Good morning.

So very interesting that you did not give me gross margin targets for 2020. So I wanted to know if you could just sort of address that change. If we should think about that is maybe being a bit of a different approaches colgate, whereas crush margins I couldn't help out that's sort of a much less. So if you can just talk a little bit I thought it would be great. Thanks.

Operator: So I wanted to know if you could just sort of address that change, if we should think about that as maybe being a bit of a different approach at Colgate, whereas gross margins have always been held up as sort of a must-have. So if you can just talk a little bit about that, that would be great. Thanks. Sure, good morning, Lauren. Listen, there's a lot of unpredictability in the world we live in today, a lot of volatility, whether it be raw and pack materials, whether it be foreign exchange, a lot of mix play, a lot of geographic mix play as well.

Noel Wallace: Sure, good morning, Lauren. Listen, there's a lot of unpredictability in the world we live in today, a lot of volatility, whether it be raw and pack materials, whether it be foreign exchange, a lot of mix play, a lot of geographic mix play as well.While we still have laser focus on driving gross margin, and as John outlined in his commentary, we plan to grow gross margins in 2020, we felt it was important to really focus on the continued priority, which is driving top-line growth and delivering the EPS guidance that we provided to the street this morning.

Sure Good morning, Lauren Lyster or you know their love unpredictability in World. We live in today, a lot volatility whether it'd be raw impact materials, whether it be foreign exchange a lot of mix play a large geography mix play as well and while we still have laser focused on driving gross margin then as John are outlined in his comments.

Operator: While we still have laser focus on driving gross margin, and as John outlined in his commentary, we plan to grow gross margins in 2020, we felt it was important to really focus on the continued priority, which is driving top-line growth and delivering the EPS guidance that we provided to the street this morning. As far as gross margins go, we believe the mixed opportunities that we have, obviously bringing brands like Hello into the business, the skincare focus we have, all of those complementing our productivity and funding the growth initiatives will allow us to continue to accelerate gross margins. We'll take our next question from Dara Mohsenian with Morgan Stanley. Hi, good morning, yes. Morning.

Terry.

We plan to grow gross margins in 2020, we felt it was important to did really focused on the continued priority, which is driving topline growth.

Delevering Dps guidance that we provided to the street. This morning as far as gross margins go we believe the mix opportunities that we have obviously, bringing brands like hello into the into the business. The skincare focus we have all of those complementing our productivity funding the growth initiatives will allow us to continue to accelerate growth margin.

As far as gross margins go, we believe the mixed opportunities that we have, obviously bringing brands like Hello into the business, the skincare focus we have, all of those complementing our productivity and funding the growth initiatives will allow us to continue to accelerate gross margins.

Operator: We'll take our next question from Dara Mohsenian with Morgan Stanley.

Well take our next question from Dumisani <unk> with Morgan Stanley.

Dara Mohsenian: Hi, good morning, yes.

Hi, good morning, guys.

Good morning.

Noel Wallace: Morning.

Operator: So we've seen a clear rebound in organic sales growth at the company, but so far it's been a bit uneven with pet and emerging markets businesses accelerating substantially, both for the full year but also in Q4, but not as strong results in North America and Europe. So I was just hoping you could compare and contrast the impact from your strategy changes on those two separate areas. Is there anything you've learned in emerging markets and pet you can apply to North America and Europe? And any green shoots there in North America or Europe, or when at least should we expect to see improvement, particularly in light of the comments that the tracked channels in North America may take some time to turn? Thanks. Thanks, Dara.

Dara Mohsenian: So we've seen a clear rebound in organic sales growth at the company, but so far it's been a bit uneven with pet and emerging markets businesses accelerating substantially, both for the full year but also in Q4, but not as strong results in North America and Europe. So I was just hoping you could compare and contrast the impact from your strategy changes on those two separate areas. Is there anything you've learned in emerging markets and pet you can apply to North America and Europe? And any green shoots there in North America or Europe, or when at least should we expect to see improvement, particularly in light of the comments that the tracked channels in North America may take some time to turn? Thanks.

We've seen a clear rebound in organic sales growth of the company, but so far it's got a good even with type and emerging markets business is accelerating substantially both for the full year, but also in Q4.

But not as strong results in North America in Europe. So I was just hoping you could compare and contrast, the impact from the strategy changes on those two separate areas is there anything you've learned in emerging markets and Pat you can apply to North America Europe and.

Any green shoots there in North America, Europe, or one that we should we expect to see improvement, particularly in light of the comments that the track channels in North America may take some time to term.

Noel Wallace: Thanks, Dara. Let's take a step back on the overarching strategy that we've been deploying over the last 12 to 18 months, which is obviously focused on our core, driving adjacencies, and exploring and operating differently with different channels. You've seen that obviously play out in the acceleration of organic growth. As we said in the upfront statements, we accelerated growth across all of our geographies, all of our divisions in that regard, and obviously all of our categories. We think the underlying strategy on how we're executing that around the world is doing quite well. Now, obviously, as you pull out different geographies, Europe categories are a bit slower, different competitive base. Obviously, we've got a very strong business there with both the Colgate franchise and the Omics franchise. The strategy that we've just articulated, we are executing really well there.

Thanks.

Thanks, Dara, so, let's let's take a step back on the overarching strategy that we've been deploying over the last 12 to 18 months, which is obviously.

Operator: Let's take a step back on the overarching strategy that we've been deploying over the last 12 to 18 months, which is obviously focused on our core, driving adjacencies, and exploring and operating differently with different channels. You've seen that obviously play out in the acceleration of organic growth. As we said in the upfront statements, we accelerated growth across all of our geographies, all of our divisions in that regard, and obviously all of our categories. We think the underlying strategy on how we're executing that around the world is doing quite well. Now, obviously, as you pull out different geographies, Europe categories are a bit slower, different competitive base. Obviously, we've got a very strong business there with both the Colgate franchise and the Omics franchise. The strategy that we've just articulated, we are executing really well there.

Focused on our core driving adjacencies.

And its exploring and operating differently with our nuclear with different channels and you've seen that obviously play out in the acceleration of organic growth as we said in the upfront statements, we accelerated growth across all of our geography is all of our divisions in that regard and obviously all of our categories. So we think the underlying strategy on how we execute.

You know around the world is doing doing quite well, obviously as you pull out different geography, Europe categories, you're a bit slower different competitive basis. Obviously, we've got very strong business there with both the Colgate franchise in the L. next franchise and the strategy that just articulated we are executing really well their shares at pretty good across.

Operator: Shares look pretty good across Europe on our business. As we talked about earlier, total performed very, very well, particularly in the UK, which is one of our largest markets. So overall, we're optimistic on where we see Europe going relative to some of the strategies we're deploying. But bear in mind that the categories aren't growing nearly as fast in Europe as they are in the rest of the world. Categories in emerging markets are basically, in our categories, growing at about 2x to the developed part of the world. So again, you would expect both North America and Europe to be at a slower pace in terms of top-line growth. Relative to North America, obviously, there's a lot of work being done from the team on how we're turning around that business. We're clearly not at the potential that we see for that business as we speak.

Shares look pretty good across Europe on our business. As we talked about earlier, total performed very, very well, particularly in the UK, which is one of our largest markets. So overall, we're optimistic on where we see Europe going relative to some of the strategies we're deploying. But bear in mind that the categories aren't growing nearly as fast in Europe as they are in the rest of the world. Categories in emerging markets are basically, in our categories, growing at about 2x to the developed part of the world. So again, you would expect both North America and Europe to be at a slower pace in terms of top-line growth. Relative to North America, obviously, there's a lot of work being done from the team on how we're turning around that business. We're clearly not at the potential that we see for that business as we speak.

Sure about our business and as we've talked about earlier total performed very very well, particularly in UK, which is one of our largest market. So overall, we were what we're optimistic on where we see Europe going relative to some of the strategies were deployed but bear in mind the categories aren't growing nearly as fast in Europe is they are in the rest of the world.

Categories on in emerging markets are basically in our categories growing at about two X to the developed part of the World. So again, you would expect both North America and Europe to be at a slower pace in terms of topline growth.

Relative to North America, you know, obviously, there's a lot of work being done from the team on how we're turning around that business, we're probably not the potential that we see for that business as we speak Oh, we're very very focused on transforming how we think about innovation to be a lot more focus on premium as we go throughout the year most of that we'll be back half weighted.

Operator: We're very, very focused on transforming how we think about innovation. There'll be a lot more focus on premium as we go throughout the year. Most of that will be back half-weighted. The team under Jean-Luc Fischer's leadership is really rethinking how we look at innovation from a structure standpoint, how we look at it from a premium standpoint, and we have some good R&D technologies coming down the pipeline that we think will continue to accelerate growth. But we're going to fix North America the right way. Obviously, we're disappointed with the progress that we made in Q4, but I have to say, based on the plans I've seen, we're really encouraged on where they're going. We're not going to buy our share back.

We're very, very focused on transforming how we think about innovation. There'll be a lot more focus on premium as we go throughout the year. Most of that will be back half-weighted. The team under Jean-Luc Fischer's leadership is really rethinking how we look at innovation from a structure standpoint, how we look at it from a premium standpoint, and we have some good R&D technologies coming down the pipeline that we think will continue to accelerate growth. But we're going to fix North America the right way. Obviously, we're disappointed with the progress that we made in Q4, but I have to say, based on the plans I've seen, we're really encouraged on where they're going. We're not going to buy our share back.

The team under John's leadership is really thinking on how we look at innovation from a structure standpoint, how we look at it from a premium standpoint, and we have some good R&D technologies coming down the pipeline that we think we'll continue to accelerate growth, but we're going to fix North America. The right way, obviously, we're disappointed with the progress that we made.

In the fourth quarter, but I have to say based on the plans I've seen we're really encouraged on where they're going we're not going to buy our share back we're going to do things in terms of making sure that we have long term sustainable growth in that business and driving the premium piece the businesses the key focus.

Operator: We're going to do things in terms of making sure that we have long-term sustainable growth in that business, and driving the premium piece of the business is the key focus. We'll move next to Jason English with Goldman Sachs. Hey, good morning, folks, and happy belated New Year. I guess I want to come back to one of the pieces that I highlighted that's performing quite well, and that's pet food. Really, really impressive growth. I guess the key question is one of durability because it's been a long time since we've seen this type of growth. We are hearing from Tractor Supply yesterday, and I know they're not the hugest retailer, but they're one of the more vocal ones, that they're looking to reset their shelves and give some brands that have turned positive more space, give some of the legacy grain-free brands less space.

We're going to do things in terms of making sure that we have long-term sustainable growth in that business, and driving the premium piece of the business is the key focus.

Operator: We'll move next to Jason English with Goldman Sachs.

Well move next to Jason English with Goldman Sachs.

Jason English: Hey, good morning, folks, and happy belated New Year. I guess I want to come back to one of the pieces that I highlighted that's performing quite well, and that's pet food. Really, really impressive growth. I guess the key question is one of durability because it's been a long time since we've seen this type of growth. We are hearing from Tractor Supply yesterday, and I know they're not the hugest retailer, but they're one of the more vocal ones, that they're looking to reset their shelves and give some brands that have turned positive more space, give some of the legacy grain-free brands less space.

Hey, good morning, folks and happy bleeding here.

I guess I want to come back to one of the one of the pieces that are highlighted this performed quite wellness that's pet food.

Really really impressive growth.

I guess the key question is one of durability, because it's been a long time since we've seen this this type of growth. We are hearing from tractor supply yesterday, and I know there they're not can you just retailer, but one of them more vocal ones that they're looking to reset their shelves and.

Give some brands that have turned turn positive more space gives some of the legacy grain free brands less space are you seeing that same shift and do you expect it to benefit you and is it a reason to believe that we can continue to see the stocking rent them as we track FY 2020.

Operator: Are you seeing that same shift, and do you expect it to benefit you, and is it a reason to believe that we can continue to see this type of momentum as we track through 2020? Yeah, listen, we're obviously very pleased, as you've seen in the numbers with Hill's, and this hearkens back to kind of the cornerstone of our strategy across the company, which is focusing on the core, which we've seen terrific growth on Science Diet as we rolled out across North America. We will be rolling the Science Diet relaunch. We started in the late 2019 in Europe, and that will expand to the rest of the world in 2020.

Are you seeing that same shift, and do you expect it to benefit you, and is it a reason to believe that we can continue to see this type of momentum as we track through 2020?

Noel Wallace: Yeah, listen, we're obviously very pleased, as you've seen in the numbers with Hill's, and this hearkens back to kind of the cornerstone of our strategy across the company, which is focusing on the core, which we've seen terrific growth on Science Diet as we rolled out across North America. We will be rolling the Science Diet relaunch. We started in the late 2019 in Europe, and that will expand to the rest of the world in 2020.

Yeah listen we're we're obviously very pleased as you've seen in the numbers with hills and you know this hearkens back to kind of the cornerstone of our strategy across the company, which is focusing on the core which we've seen a terrific growth on science diet as we rolled out across North America.

We will be rolling the science that relaunch we started in the delayed.

2019 in Europe, and that will expand the rest of the world and 2020.

Operator: We looked at adjacencies, obviously, as we're getting into the core, and the channel expansion that we've had, both in farm and feed as well as e-commerce, really sits well with how confident we are with the strategy that we're executing around the world. Now, specifically on the durability of that business, aside from the fact that they continue to have a strong pipeline of innovation coming, the Science Diet rollout will go throughout the rest of the world in 2020. Take the US as an example. We delivered double-digit growth in the fourth quarter on the Hill's business last year, and we delivered another double-digit growth this year in the fourth quarter. So given the size of that business, I think a clear indication that the durability is there. Now, there's no question the comps will get more difficult as we move forward.

We looked at adjacencies, obviously, as we're getting into the core, and the channel expansion that we've had, both in farm and feed as well as e-commerce, really sits well with how confident we are with the strategy that we're executing around the world. Now, specifically on the durability of that business, aside from the fact that they continue to have a strong pipeline of innovation coming, the Science Diet rollout will go throughout the rest of the world in 2020. Take the US as an example. We delivered double-digit growth in the fourth quarter on the Hill's business last year, and we delivered another double-digit growth this year in the fourth quarter. So given the size of that business, I think a clear indication that the durability is there. Now, there's no question the comps will get more difficult as we move forward.

We looked at adjacent she's obviously as we're getting into the core and the channel expansion that we've had a both in farm and feed as well as E commerce really fits well with how confident we are the strategy that we're executing around the world. That's specifically on the durability that business aside from the fact that they continue to have a strong pipeline of innovation come.

I mean, the science diet rollout will go throughout the rest of the world enough and 2020.

I'll take the U.S. as an example, we delivered double digit growth in the fourth quarter on the Hill's business last year, and we delivered another double digit growth. This year in the fourth quarter you. So given the size of that Didnt business I think a clear indication that the durability is there no no. There's no question to cost will get more difficult as we move forward. So we need to compete.

Operator: So we need to continue to focus on the things that we do really well, which is the innovation piece of the business, executing against new channels, and exploring new adjacencies, which I mentioned in some of my upfront comments about the opportunities we see in wet moving forward. We'll move next to Andrea Teixeira with JPMorgan. Hi, good morning, everyone. So I wanted to know if you can explore more Q2, Costco Europe, and a bit of North America, but embedded in your guidance, you're thinking of a more balanced growth in between North America and developing markets. And if you can also elaborate a little bit more, obviously, with all the coronavirus impact, but the Asia Pacific volumes have been coming back since last quarter, since Q3, and then Q4.

So we need to continue to focus on the things that we do really well, which is the innovation piece of the business, executing against new channels, and exploring new adjacencies, which I mentioned in some of my upfront comments about the opportunities we see in wet moving forward.

Thank you to focus on the things that we do really well, which is the innovation piece to the business executing against new channels and exploring new vacation season, which I mentioned in some of my up her comments about the opportunities, we see and wet moving forward.

Operator: We'll move next to Andrea Teixeira with JPMorgan.

Next to Andrea to share with JP Morgan.

Andrea Teixeira: Hi, good morning, everyone. So I wanted to know if you can explore more Q2, Costco Europe, and a bit of North America, but embedded in your guidance, you're thinking of a more balanced growth in between North America and developing markets. And if you can also elaborate a little bit more, obviously, with all the coronavirus impact, but the Asia Pacific volumes have been coming back since last quarter, since Q3, and then Q4. And if you continue to see momentum there, and in Latin, if you can still see a more balanced volume pricing growth as you roll out the more premium products there. Thank you.

Hi, good morning, everyone I'm, sorry, I'm wondering to know if you can explore more you took us to Europe and I'm a bit of North America, but it's embedded in your guidance you thinking off a more balanced growth in between.

No for America, and developing markets and a if you can also elaborate a bit more obviously with all the corner virus impact, but the Asia Pacific volumes have been coming back since since last quarter since the third quarter and in the fourth quarter and if you continue to see momentum there and New York and if you can see a more.

Operator: And if you continue to see momentum there, and in Latin, if you can still see a more balanced volume pricing growth as you roll out the more premium products there. Thank you. Great. Thanks. So let's talk a little bit about emerging markets. As you well know, we do 70%, more or less 70%, of our revenues outside the US. So we're very focused on emerging markets, and as I mentioned earlier, the emerging market growth rates, at least in our core categories, are growing at a healthy pace above where we see the developed part of the world moving. So organic growth of 5% in emerging on the year versus 3% in developed obviously is consistent with what we'd like to see the profile of our organic growth moving forward, given the strength that we have in emerging markets.

Balance of volume pricing growth as you roll out a them opinion products there. Thank you.

Great.

Noel Wallace: Great. Thanks. So let's talk a little bit about emerging markets. As you well know, we do 70%, more or less 70%, of our revenues outside the US. So we're very focused on emerging markets, and as I mentioned earlier, the emerging market growth rates, at least in our core categories, are growing at a healthy pace above where we see the developed part of the world moving. So organic growth of 5% in emerging on the year versus 3% in developed obviously is consistent with what we'd like to see the profile of our organic growth moving forward, given the strength that we have in emerging markets.

Thanks, So let's talk a little bit about emerging markets as you well no we do 70% more or less 70% of a revenues outside the U.S. So we're very focused on emerging markets and as I mentioned earlier, the emerging market growth rates at least in our core categories are growing at a healthy pace above where we see the developed part of the world of moving so.

Organic growth of 5% in emerging on the year versus 3% in developing all the she is consistent with what we'd like to see a the profile of our organic growth moving forward given the strength that we have in emerging markets.

Latin America specifically.

Operator: Latin America, specifically, doing well. Mexico doing well in Brazil. Categories are in the 4% to 5% rate there. We should obviously see there's some uncertainty on where Mexico is going, given the fact that they are technically in a recession, and macroeconomics in Brazil seem to be improving. We'll see how that unfolds over time, but the business is quite solid in Latin America, and the categories seem to be holding up pretty well. Moving on to Asia, obviously very pleased with another quarter of organic growth, and we seem to be getting on track. But as we've said, the turnaround in Asia is going to take some time.

Latin America, specifically, doing well. Mexico doing well in Brazil. Categories are in the 4% to 5% rate there. We should obviously see there's some uncertainty on where Mexico is going, given the fact that they are technically in a recession, and macroeconomics in Brazil seem to be improving. We'll see how that unfolds over time, but the business is quite solid in Latin America, and the categories seem to be holding up pretty well. Moving on to Asia, obviously very pleased with another quarter of organic growth, and we seem to be getting on track. But as we've said, the turnaround in Asia is going to take some time.

Doing well, Mexico doing well in Brazil categories, you're in the 4% to 5% right. There are we shared the obviously, there's some uncertainty on the were Mexico's going though given the fact that they're technically in a recession and macroeconomics in Brazil seem to be improving we'll see how that unfolds over time, but the business, there's quite solid in Latin America and.

The category seem to be holding up pretty well.

Moving on to Asia, obviously, very pleased with another quarter of of organic growth.

And we seem to be getting on track, but as we said.

Turned around in Asia is going to be is going to take some time law. We saw great. Good growth in back half of the year. This is a long term strategy that we're executing in Asia to get the portfolio right to get to go to market right and get the innovation structure right, particularly as we look at how we innovate on the growing E Commerce channel the Corona viruses.

Operator: While we saw good growth in the back half of the year, this is a long-term strategy that we're executing in Asia to get the portfolio right, to get the go-to-market right, and get the innovation structure right, particularly as we look at how we innovate on the growing e-commerce channel. The coronavirus is not much more to add on that. First and foremost, we're very pleased all of our employees are safe. We are very focused on that. We have mobilized the supply chain to look at all contingency planning relative to production should the implications of the virus extend beyond the current dates, and we're intending to come back to everyone with more information at CAGNY. Africa, one, we don't talk about a lot. Obviously, we had issues in that business 18 to 24 months ago.

While we saw good growth in the back half of the year, this is a long-term strategy that we're executing in Asia to get the portfolio right, to get the go-to-market right, and get the innovation structure right, particularly as we look at how we innovate on the growing e-commerce channel. The coronavirus is not much more to add on that. First and foremost, we're very pleased all of our employees are safe. We are very focused on that. We have mobilized the supply chain to look at all contingency planning relative to production should the implications of the virus extend beyond the current dates, and we're intending to come back to everyone with more information at CAGNY. Africa, one, we don't talk about a lot. Obviously, we had issues in that business 18 to 24 months ago.

Not much more to add on that during the first and foremost we're very pleased all of our employees are safe, though we are very focused on that.

We have a mobilized to supply chain to look at all contingency planning relative to a production should the implications of the virus extend beyond the current dates and will intend to come back to to everyone with more information at that Cagney.

Africa is one we don't talk about locked obviously, we had issues in that business. So it's 18 to 24 months ago, you've seen I think the durability of the strategy play out and the African numbers, what we've seen consisting growth importantly, one of our largest market South Africa had a good back half and so the categories as well as our business in that important geography seem to be.

Operator: You've seen, I think, the durability of the strategy play out in the Africa numbers where we've seen consistent growth. Importantly, one of our largest markets, South Africa, had a good back half, and so the categories, as well as our business in that important geography, seem to be performing quite well. We'll take our next question from Steve Powers with Deutsche Bank. Great, thanks. Maybe first, just to clean up on North America. I know you said you wouldn't buy your way back to share strength, but the pricing and profitability there this quarter just came in below our expectations, so maybe you could help unpack what happened in the quarter and whether that will carry over into at least H1 2020. My main question more broadly, just if you could, maybe just to state a play across your skincare businesses. That category has been accelerating.

You've seen, I think, the durability of the strategy play out in the Africa numbers where we've seen consistent growth. Importantly, one of our largest markets, South Africa, had a good back half, and so the categories, as well as our business in that important geography, seem to be performing quite well.

Performing quite well.

Operator: We'll take our next question from Steve Powers with Deutsche Bank.

Well take our next question from Steve powers with Deutsche Bank.

Steve Powers: Great, thanks. Maybe first, just to clean up on North America. I know you said you wouldn't buy your way back to share strength, but the pricing and profitability there this quarter just came in below our expectations, so maybe you could help unpack what happened in the quarter and whether that will carry over into at least H1 2020. My main question more broadly, just if you could, maybe just to state a play across your skincare businesses. That category has been accelerating.

Great. Thanks, maybe first just to clean up on North America. I know you said you wouldn't buy your way back to shear strength, but the pricing and profitability. There. This quarter just came in below our expectations somebody could help on pack what happened in the quarter and whether that will carry over until at least the first half of 2020, but my main question more broadly.

Just if you could maybe just a state of play across your skin care businesses in that category has been accelerating the sort of love a little bit more context from you about how you how your various brands are performing against expectations. And then also just a comment comment on your upside to do more in skincare weather prioritizing organic investment.

Operator: Just would love a little bit more context from you about how your various brands are performing against expectations. Then also just a comment on your appetite to do more in skincare, whether prioritizing organic investment, maybe expanding brands like Tom's or even Hello in that direction, or obviously pursuing additional M&A. Thanks. Sure. Sure, Steve. On the pricing, bear in mind that in the fourth quarter of last year, we were not promoting, quite frankly, at all across most of our toothpaste franchise, given the preparation for the launch of Total. So the comps were obviously very difficult for us in the fourth quarter this year versus where they were in the fourth quarter last year. We also had a bit of mix both in the category and channel mix that impacted the margins in the quarter.

Just would love a little bit more context from you about how your various brands are performing against expectations. Then also just a comment on your appetite to do more in skincare, whether prioritizing organic investment, maybe expanding brands like Tom's or even Hello in that direction, or obviously pursuing additional M&A. Thanks.

Maybe expanding brands like Tom as or or even how low in that direction.

Or obviously pursuing additional M&A. Thanks.

Noel Wallace: Sure. Sure, Steve. On the pricing, bear in mind that in the fourth quarter of last year, we were not promoting, quite frankly, at all across most of our toothpaste franchise, given the preparation for the launch of Total. So the comps were obviously very difficult for us in the fourth quarter this year versus where they were in the fourth quarter last year. We also had a bit of mix both in the category and channel mix that impacted the margins in the quarter.

Sure.

Sure Steve on the on the pricing a bear in mind that in the fourth quarter of last year, we were not promoting quite frankly at all across most of our two state franchise given the the preparation for the launch of a total so the comps were obviously very difficult for certain fourth quarter this year versus where they were in the fourth quarter last.

Last year, we also had a bit of mix both in the category and GR excuse me and the channel next impacted.

The margins in the quarter moving forward as John mentioned in his comments a the work that we're doing to prepare for long term sustainable growth in U.S. consistent with our strategy and very focused particularly in the U.S. around premium innovation most of that will kick in in the back half of a 2020.

Operator: Moving forward, as John mentioned in his comments, the work that we're doing to prepare for long-term sustainable growth in the US, consistent with our strategy and very focused, particularly in the US, around premium innovation, most of that will kick in in the back half of 2020. Relative to skincare, we're very pleased. You heard in the upfront comments those businesses are growing double digits, and we intend to continue to focus and accelerate our investment in those categories as we move through the balance of 2020. They've got a good innovation pipeline, and we're obviously very carefully thinking about our expansion into new geographies. What we do see is significant upside in the geographies in which we currently compete.

Moving forward, as John mentioned in his comments, the work that we're doing to prepare for long-term sustainable growth in the US, consistent with our strategy and very focused, particularly in the US, around premium innovation, most of that will kick in in the back half of 2020. Relative to skincare, we're very pleased. You heard in the upfront comments those businesses are growing double digits, and we intend to continue to focus and accelerate our investment in those categories as we move through the balance of 2020. They've got a good innovation pipeline, and we're obviously very carefully thinking about our expansion into new geographies. What we do see is significant upside in the geographies in which we currently compete.

Relative to skin care, we're very pleased you heard and yet from comments those businesses are growing double digits.

And we intend to continue to focus and accelerate our investment in those categories as we move through the balance of 2020 and they've gotten good innovation pipeline and we're obviously very carefully thinking about our expansion into new into new geographies that what we do see a significant upside in geography, which we currently recurrently compete obviously.

Operator: Obviously, China is a big piece of the skincare business, both for EltaMD and for Filorga, so we're on a wait-and-see in terms of the impact of the coronavirus on our business there. Filorga specifically has a good travel retail business, so we'll see how that unfolds moving forward. As it relates to M&A, listen, we've got, between EltaMD, PCA, and Filorga, we think, the right skincare assets right now. Obviously, if something came across that really got our attention, we would consider it. With the acquisition of Hello, we're tremendously excited in terms of the growth potential there. We think we're right where we need to be in terms of M&A, but never say never. We'll take our next question from Nik Modi with RBC. Yeah, good morning, everyone. No, I was hoping you can provide some compare and contrast.

Obviously, China is a big piece of the skincare business, both for EltaMD and for Filorga, so we're on a wait-and-see in terms of the impact of the coronavirus on our business there. Filorga specifically has a good travel retail business, so we'll see how that unfolds moving forward. As it relates to M&A, listen, we've got, between EltaMD, PCA, and Filorga, we think, the right skincare assets right now. Obviously, if something came across that really got our attention, we would consider it. With the acquisition of Hello, we're tremendously excited in terms of the growth potential there. We think we're right where we need to be in terms of M&A, but never say never.

China is a big piece of the skin care business, both for Ulta and for Florida. So we'll have to we're on a wait and see good in terms of the impact of the Corona virus on a business there in order to specifically has a as a good travel retail business. So we'll see how that unfolds.

Moving forward.

And as it really relates to M&A listen we've got.

Between Delta PC, a and B long ago, we think the right skincare assets right now obviously, if something came across it really got our attention and we would consider it and with the acquisition of below where were tremendously excited in terms of the growth potential. There. We think we're right where we need to be in terms of M&A, but never say never.

Operator: We'll take our next question from Nik Modi with RBC.

Well take our next question from Nik Modi with RBC.

Nik Modi: Yeah, good morning, everyone. No, I was hoping you can provide some compare and contrast. I mean, Hill's has been doing very well after struggling for a bit, and so I just wanted to hear your thoughts on what happened with Hill's and kind of how you think about the core pet care business in terms of kind of the progression and evolution of some of the strategies that you've been putting in place.

Yeah. Good morning, everyone. No I was hoping you can provide some compare and contrast, I mean pills has been doing very well after struggling for four bit and so I just wanted to get here. Your thoughts on you know what happened with hills and kind of how you think about the core oil care business in terms of kind of that progression evolution of some of the strategy that you've been putting in place.

Operator: I mean, Hill's has been doing very well after struggling for a bit, and so I just wanted to hear your thoughts on what happened with Hill's and kind of how you think about the core pet care business in terms of kind of the progression and evolution of some of the strategies that you've been putting in place. Sure. Again, relative to the strategy that we're deploying across the world, which is core adjacencies and channels, Hill's is hitting on all cylinders in that regard. The other important area that we see that they have a unique advantage in is how they're thinking about the business digitally, and how we're focused very much on now embracing analytics to drive our e-commerce business, which was incidentally up almost 40% in the quarter.

Noel Wallace: Sure. Again, relative to the strategy that we're deploying across the world, which is core adjacencies and channels, Hill's is hitting on all cylinders in that regard. The other important area that we see that they have a unique advantage in is how they're thinking about the business digitally, and how we're focused very much on now embracing analytics to drive our e-commerce business, which was incidentally up almost 40% in the quarter.

Yes.

Sure you know again relative to the strategy that word the point across the world, which is core Jason season channels.

Hills is hitting on all cylinders in that regard the other important area that we see.

They have a unique advantage and is how they're thinking about business digitally and how we're focused very much on now embracing analytics to use to drive our ecommerce business, which was incidentally.

Up almost 40% a in the quarter, so they're hitting on all the right things right now and they got a obviously good growth plans moving forward, but as I've said the comps get more difficult.

Operator: So they're hitting on all the right things right now, and they've got obviously good growth plans moving forward, but as I've said, the comps get more difficult. The good news is obviously the prescription diet business, which is an important part of that business. We have strong innovation coming down in 2020, and we think we're well positioned, obviously given some of the impacts of the recall that we had in 2019, to recover from that moving forward.

So they're hitting on all the right things right now, and they've got obviously good growth plans moving forward, but as I've said, the comps get more difficult. The good news is obviously the prescription diet business, which is an important part of that business. We have strong innovation coming down in 2020, and we think we're well positioned, obviously given some of the impacts of the recall that we had in 2019, to recover from that moving forward.

The good news is obviously the prescription diet, a business, which is an important part of that business. We have strong innovation coming down and 2020, and we think we're well positioned obviously given.

Some of the impacts of the recall that we had in 2019 to recover from that moving forward.

Operator: Obviously, relative to the learnings we have on Hill's, as I mentioned, likewise in my upfront comments, we're seeing great benefits by combining our teams, particularly around digital and e-commerce on the ground, to share learnings and really maximize efficiencies in terms of how we look at digital, how we buy digital, and how we execute against the data that we're learning from Hill's, who's quite advanced in that, and sharing those learnings broadly across the Colgate business will pay dividends for us. We'll go next to Rob Ottenstein with Evercore ISI. Great. Thank you very much. I think you mentioned e-commerce overall up 30%, Hill's almost 40%.

Obviously, relative to the learnings we have on Hill's, as I mentioned, likewise in my upfront comments, we're seeing great benefits by combining our teams, particularly around digital and e-commerce on the ground, to share learnings and really maximize efficiencies in terms of how we look at digital, how we buy digital, and how we execute against the data that we're learning from Hill's, who's quite advanced in that, and sharing those learnings broadly across the Colgate business will pay dividends for us.

Obviously relative to the learnings we have on hills as I mentioned likewise in my upfront comments I, we're seeing great benefits by combining our teams, particularly around digital and ecommerce on the ground to share learnings and really maximize efficiencies in terms of how we look at digital how we buy digital and how we execute against the data.

We're learning from from Mount helices quite advanced in that ensuring those learnings broadly across the Colgate business I will pay dividends wars.

Operator: We'll go next to Rob Ottenstein with Evercore ISI.

Well go next to Rob Ottenstein with Evercore ISI.

Robert Ottenstein: Great. Thank you very much. I think you mentioned e-commerce overall up 30%, Hill's almost 40%. Perhaps can I just get a sense of what's going on in e-commerce on the oral care side, and particularly in the US market and in China, what kind of growth rates you're seeing, what percentage of the business is e-commerce, kind of initiatives you're doing, and then most specifically on China? You started to touch on it, but I'd love to get a little bit more granularity in terms of whether you have the right brand portfolio, the right price points, whether it's a question of technology relationships with the large e-commerce providers to really get the Chinese e-commerce business rocking and rolling. Thank you.

Great. Thank you very much I did you mention ecommerce overall up 30% Hills almost 40.

Perhaps kinda just give a sense of what's going on a in ecommerce on the oral care side.

Operator: Perhaps can I just get a sense of what's going on in e-commerce on the oral care side, and particularly in the US market and in China, what kind of growth rates you're seeing, what percentage of the business is e-commerce, kind of initiatives you're doing, and then most specifically on China? You started to touch on it, but I'd love to get a little bit more granularity in terms of whether you have the right brand portfolio, the right price points, whether it's a question of technology relationships with the large e-commerce providers to really get the Chinese e-commerce business rocking and rolling. Thank you. Sure. So pleased with e-commerce overall. As John mentioned, we were up 30% in the year. This is a fluid business that you continually bring new learnings in, which is great about the business because it's so data-driven.

Particularly in the U.S. market and in China.

What kind of growth rates, you're seeing what percentage should the businesses E commerce kind of initiatives, you're doing and then most specifically on China, you've started to touch on it but love to get a little bit more granularity in terms of whether you have the right brand portfolio the right price.

Points, whether it's a question of technology relationships with the large ecommerce providers to really get the the Chinese ecommerce business rocking and rolling Thank you.

Noel Wallace: Sure. So pleased with e-commerce overall. As John mentioned, we were up 30% in the year. This is a fluid business that you continually bring new learnings in, which is great about the business because it's so data-driven.

Sure.

Im pleased with ecommerce overall as Dawn mentioned, we were up 30% year.

No. This is a a a fluid business that you continually bring new learning Jen.

Which is great about the business because it's so data driven you're able to ascertain what's working much not an act upon that pretty quickly. So we're thinking quite differently I'm on how we structure ourselves around E commerce with fully independent teams managing that business or they can take that there are empowered to make decisions and taking those decisions excuse me.

Operator: You're able to ascertain what's working, what's not, and act upon that pretty quickly. So we're thinking quite differently on how we structure ourselves around e-commerce with fully independent teams managing that business so they can take that they're empowered to make decisions and taking those decisions, excuse me, very live rather than having to wait for that. So that's certainly benefiting us both on the core oral care side, the Colgate side, as well as the Hill's side. The Colgate business was up significantly last year in the US. Our e-commerce business was up just shy of 40%. Shares ticked up again. Remember, we have a very strong Tom's of Maine business. Hello will come into the franchise now, which is quite strong on e-commerce as well, and the Colgate business is driving nice growth.

You're able to ascertain what's working, what's not, and act upon that pretty quickly. So we're thinking quite differently on how we structure ourselves around e-commerce with fully independent teams managing that business so they can take that they're empowered to make decisions and taking those decisions, excuse me, very live rather than having to wait for that. So that's certainly benefiting us both on the core oral care side, the Colgate side, as well as the Hill's side. The Colgate business was up significantly last year in the US. Our e-commerce business was up just shy of 40%. Shares ticked up again. Remember, we have a very strong Tom's of Maine business. Hello will come into the franchise now, which is quite strong on e-commerce as well, and the Colgate business is driving nice growth.

Sorry life, rather than having to wait for that so that's certainly a benefiting us both on the core elk oral care side as a colgate side as well as the hill side. The Colgate business was up significantly last year a in the U.S. Our E Commerce business was up just shy 40%.

Shares picked up again remember we have a very strong Tom's of Maine business, Oh, Hello will come into that franchise now which is quite strong on E commerce as well and the Colgate business is driving the driving that nice growth.

Operator: As we look at China specifically, we're starting to develop much more strategic relationships with some of the big platforms there, whether it be Alibaba or JD.com. We're looking at structuring ourselves differently in order to ensure that we're partnering with them in a very different way, not only in terms of the data side of the business, but likewise on the innovation side of the business, where we're going to need to really focus on the premium side, which I mentioned, and collaborating with some of our big partners and having the flexibility to do things a bit more uniquely. We think that will bode well for the business moving forward. We'll take our next question from Olivia Tong with Bank of America. Great. Thanks. First, on North America, as you think about the remediation actions you're taking there, what's your view on margins?

As we look at China specifically, we're starting to develop much more strategic relationships with some of the big platforms there, whether it be Alibaba or JD.com. We're looking at structuring ourselves differently in order to ensure that we're partnering with them in a very different way, not only in terms of the data side of the business, but likewise on the innovation side of the business, where we're going to need to really focus on the premium side, which I mentioned, and collaborating with some of our big partners and having the flexibility to do things a bit more uniquely. We think that will bode well for the business moving forward.

As we.

Look at China, specifically, we're starting to develop much more strategic relationship from some of the big platforms, there whether it be Ali Baba or JV, we're looking at structure and ourselves differently in order to ensure that we're getting a partnering with them in a very different way novel in terms of the data side of the business, but likewise on the innovation side of business, where we're going to me.

Need to really focus on the premium side, which I mentioned and collaborating with some of our big partners and having the flexibility to do things a bit more uniquely we think will bode well for the business moving moving forward.

Operator: We'll take our next question from Olivia Tong with Bank of America. Great.

Well take our next question from Olivia Tong with Bank of America.

Great. Thanks.

Olivia Tong: Thanks. First, on North America, as you think about the remediation actions you're taking there, what's your view on margins? Because they've obviously come in pretty dramatically. So you talked about the focus on premiumization. Do you think going forward the margin gets better because of the premiumization, or is this sort of a certain level of investment is now here to stay?

With America I'm just.

Do you think about the remediation actions you're taking there.

Margins, obviously coming pretty dramatically. So you know you talked about the focus on Premiumization do you think going forward.

Operator: Because they've obviously come in pretty dramatically. So you talked about the focus on premiumization. Do you think going forward the margin gets better because of the premiumization, or is this sort of a certain level of investment is now here to stay? Thanks, Olivia. Sure. Listen, the margins improved in the fourth quarter, obviously, from where they were in the third quarter. As I talked about, we had some more difficult comparisons given the promotional environment a year ago. We have seen a little bit of step up in promotional in the toothpaste category, particularly around couponing, as we've seen some of our competitors increase their values in that space, but we'll manage that very carefully. As I mentioned earlier, our focus is getting back to durable, sustainable growth, and premium innovation is at the heart of that.

Better because of the Premiumization or is it sort of a certain level investment is now here to say.

Thanks, Olivia sure that's in the margins improved in the fourth quarter, obviously from where they were in the third quarter as I talked about we had some more difficult comparisons given the promotional environment a year ago.

Noel Wallace: Thanks, Olivia. Sure. Listen, the margins improved in the fourth quarter, obviously, from where they were in the third quarter. As I talked about, we had some more difficult comparisons given the promotional environment a year ago. We have seen a little bit of step up in promotional in the toothpaste category, particularly around couponing, as we've seen some of our competitors increase their values in that space, but we'll manage that very carefully. As I mentioned earlier, our focus is getting back to durable, sustainable growth, and premium innovation is at the heart of that.

We have seen a little bit of step up and promotional a into toothpaste category, particularly around couponing.

As we've seen some of our competitors increase there the values in that space, but we'll we'll manage that very carefully as I mentioned earlier, our focus is getting back to durable sustainable growth and premium innovation is at the heart of that in the Premier innovation will obviously be accretive to the margin as we move forward as we continue to push the mix in that area.

Operator: The premium innovation will obviously be accretive to the margin as we move forward and as we continue to push the mix in that area. Obviously, the move towards naturals and lifestyle brands, naturals with Tom's of Maine, which will increase the investment behind that business, will help margins. The lifestyle brands like Hello, as we continue to push that business, which incidentally today only has a 9% awareness in the US market, so as we put more investment behind that and we continue to expand the distribution, obviously that will play out nicely for the business as well. The advertising is meant to obviously create long-term sustainable growth for us, and we've seen that obviously play out holistically and globally on the top line, and North America will get its fair share as we continue to rebuild that business moving forward.

The premium innovation will obviously be accretive to the margin as we move forward and as we continue to push the mix in that area. Obviously, the move towards naturals and lifestyle brands, naturals with Tom's of Maine, which will increase the investment behind that business, will help margins. The lifestyle brands like Hello, as we continue to push that business, which incidentally today only has a 9% awareness in the US market, so as we put more investment behind that and we continue to expand the distribution, obviously that will play out nicely for the business as well. The advertising is meant to obviously create long-term sustainable growth for us, and we've seen that obviously play out holistically and globally on the top line, and North America will get its fair share as we continue to rebuild that business moving forward.

Obviously, the the move towards Ah Naturals, and lifestyle brands Naturals with Tom's of Maine, which will increase the investment behind that business I will help margins are the lifestyle brands like like Hello, as we continue to push that business, which incidentally today only has a 9% awareness in the U.S. markets or do we put more investment.

Behind that and we continue to expand the distribution, obviously that will play out.

Actually for the business as well the advertising is meant to obviously create long term sustainable growth for us and we've seen that obviously play out holistically and globally on the topline in North America will get its fair share as we continue to rebuild that business moving forward, but again, we're going to do that the right way focused on innovation and making sure that we're building the brand.

Operator: But again, we're going to do that the right way, focused on innovation and making sure that we're building the brands for the long term. Next to Kevin Grundy with Jefferies. Thanks. Good morning, everyone. Hi, Kevin. Question for you on the company's ability to drive greater leverage between the top line and earnings as we look beyond 2020. So clearly, this was an investment year. You're getting the top line payback, which is encouraging, but EPS down mid-single digits as you look out to next year, up a little to mid-single digits, relatively in line with the mid-single digit excuse me, low single excuse me, mid-single digit top line that you're guiding to organically. Understanding FX is a little bit of a component there, a little bit of a headwind.

But again, we're going to do that the right way, focused on innovation and making sure that we're building the brands for the long term.

For the long term.

Operator: Next to Kevin Grundy with Jefferies.

Your next to Kevin Grundy with Jefferies.

Kevin Grundy: Thanks. Good morning, everyone.

Thanks, Good morning, everyone.

Noel Wallace: Hi, Kevin.

Karen.

Kevin Grundy: Question for you on the company's ability to drive greater leverage between the top line and earnings as we look beyond 2020. So clearly, this was an investment year. You're getting the top line payback, which is encouraging, but EPS down mid-single digits as you look out to next year, up a little to mid-single digits, relatively in line with the mid-single digit excuse me, low single excuse me, mid-single digit top line that you're guiding to organically. Understanding FX is a little bit of a component there, a little bit of a headwind.

No quick question for you on the company's ability to drive greater leverage between the topline and earnings as we look beyond 20. So clearly this was an investment year, you're getting a topline pay back which is encouraging but EPS down mid single digits as you look out to next year.

Low to mid single digits relatively in line with the mid single digit.

Excuse me, what low single excuse me mid single digit topline, but you're guiding to organically understanding FX is a little bit of a component there a little bit of a headwind, but it will investment levels be adequate for the company as best you can tells you look at <unk> as you look at your budget and you look at your guidance now so as you get beyond 20, you know should should the investment community expense.

Operator: But will investment levels be adequate for the company as best you can tell as you look at your budget and you look at your guidance now? So as you get beyond 2020, should the investment community expect a return to high single-digit EPS growth where you're able to get better leverage once investment levels are adequate? Thanks. Yeah. Thanks, Steve. We're not going to obviously guide beyond 2020 at this stage, but let me talk a little bit about leverage and productivity and how we're thinking about it. First and foremost, as we've been very consistent with our strategy around reinvigorating top line growth and driving sustainable organic growth, you've seen that obviously sequentially through the last five quarters. And the best leverage we're going to get through the P&L is as we deliver the top line. Obviously, we'll see where foreign exchange goes.

But will investment levels be adequate for the company as best you can tell as you look at your budget and you look at your guidance now? So as you get beyond 2020, should the investment community expect a return to high single-digit EPS growth where you're able to get better leverage once investment levels are adequate? Thanks.

A return to high single digit EPS growth, where you're able to get better leverage once once investment levels are adequate thanks.

Noel Wallace: Yeah. Thanks, Steve. We're not going to obviously guide beyond 2020 at this stage, but let me talk a little bit about leverage and productivity and how we're thinking about it. First and foremost, as we've been very consistent with our strategy around reinvigorating top line growth and driving sustainable organic growth, you've seen that obviously sequentially through the last five quarters. And the best leverage we're going to get through the P&L is as we deliver the top line. Obviously, we'll see where foreign exchange goes.

Yeah. Thanks, Dave we're not going obviously guide beyond 2020 at this stage, but let me talk a little bit about leverage of productivity and how we're thinking about it.

First and foremost as we've been very consistent with our.

With our strategy around reinvigorating topline growth and driving sustainable organic growth you've seen that obviously sequentially through.

The last five quarters in the best leverage we're going to get through the P. now is as we deliver the top line obviously, what she will foreign exchange goes we believe it will be a little less punishing. It has been in the past this year, but again with the unpredictability is environment should we compete well we shall see a as I mentioned in the upfront beyond premium innovation, which will.

Operator: We believe it'll be a little less punishing than it has been in the past this year. But again, with the unpredictability of the environments that we compete, we shall see. As I mentioned in the upfront, beyond premium innovation, which will obviously drive the top line and the leverage through the P&L, we are very, very focused on productivity across the entire P&L. We have a list of projects that we're thinking through. We're obviously looking at productivity delivered through technology and the discussions I had around S/4HANA, and how we leverage the simplification efforts that will come from that and the standardization that will come from that. So we're very focused on that. The supply chain likewise, looking, as I mentioned, to use robotics and automation very differently moving forward. We're looking at segmentation of our facilities around the world to drive more efficiencies in the plants.

We believe it'll be a little less punishing than it has been in the past this year. But again, with the unpredictability of the environments that we compete, we shall see. As I mentioned in the upfront, beyond premium innovation, which will obviously drive the top line and the leverage through the P&L, we are very, very focused on productivity across the entire P&L. We have a list of projects that we're thinking through. We're obviously looking at productivity delivered through technology and the discussions I had around S/4HANA, and how we leverage the simplification efforts that will come from that and the standardization that will come from that. So we're very focused on that. The supply chain likewise, looking, as I mentioned, to use robotics and automation very differently moving forward. We're looking at segmentation of our facilities around the world to drive more efficiencies in the plants.

Obviously drive the top line in the leverage to the P. now we are very very focused on productivity across the entire p. and now we have a a list of projects that were thinking through we're obviously looking at productivity deliberate to technology in the discussions I had around us for add on how we leveraged system the simplification as.

Efforts it will come from that and standardization it will come from Matt. So we're very focused on that the supply chain. Likewise looking there as I mentioned to use robotics automation very differently moving forward, we're looking at segmentation of our facilities around the world to drive more efficiencies in the plants. So productivity is is right in the right in our focus right now.

Operator: So productivity is right in our focus right now, and as we drive the top line, we'll see that productivity move through the P&L. Most of that productivity, particularly for North America, we'll see that coming through in the back half of 2020. Move next to Mark Astrachan with Stifel. Thanks. And good morning, everybody. I wanted to ask about Hello kind of specifically in M&A strategy broadly. So what does Hello give you that you couldn't have done with your own brands? And I guess just more broadly, what's driving the increase in M&A over the last year or so as you've taken over and all? How do you describe the company's ability to handle, digest multiple deals at once? I guess that they're small, but there's a lot more going on here than there has been. Thoughts on doing more deals?

So productivity is right in our focus right now, and as we drive the top line, we'll see that productivity move through the P&L. Most of that productivity, particularly for North America, we'll see that coming through in the back half of 2020.

And as we drive the topline, we'll see that productivity moved through the P. and now most of that productivity, particularly for North America, well see that coming through in the back half of 2020.

Operator: Move next to Mark Astrachan with Stifel.

Next to Mark asked for certain with Stifel.

Mark Astrachan: Thanks. And good morning, everybody. I wanted to ask about Hello kind of specifically in M&A strategy broadly. So what does Hello give you that you couldn't have done with your own brands? And I guess just more broadly, what's driving the increase in M&A over the last year or so as you've taken over and all? How do you describe the company's ability to handle, digest multiple deals at once? I guess that they're small, but there's a lot more going on here than there has been. Thoughts on doing more deals?

Thanks, and good morning, everybody.

What did you ask about Hello kind of specifically in M&A strategy broadly so.

What is hello.

You could have done with your own brands I guess, just just more broadly what's driving the increase in M&A over the last year or so do you see renewal.

How how do you described the company's ability to handle digest multiple deal the once I get that they're small, but there's a lot.

We're going on here than it has been thoughts on being more deals can you.

Operator: Can you take on more at this point, potentially even something larger should that materialize? And maybe how do you think about the leverage targets? I know not necessarily specific to M&A, but just kind of broadly since there's certainly not a lot of leverage on the balance sheet at this point. Yeah. So thanks, Mark. So I mentioned upfront that markets are changing, categories are changing, consumers are changing, and we've seen that disruption certainly peak out very aggressively in Asia, particularly China. We've seen a lot more of that in North America over the last 18 months. And so as we look at our business, we're obviously looking to position our brands in areas where they can best compete. And as we look at our portfolio strategies, we obviously can't be a one brand for all, particularly given the disruptions you're seeing in the marketplace.

Can you take on more at this point, potentially even something larger should that materialize? And maybe how do you think about the leverage targets? I know not necessarily specific to M&A, but just kind of broadly since there's certainly not a lot of leverage on the balance sheet at this point.

Take on more at this point potentially even something larger should that materializing, maybe how do you think about the leverage targets I know not necessarily specific emanated just kind of broadly since there's certainly on a lot of leverage on balance sheet at this point.

Noel Wallace: Yeah. So thanks, Mark. So I mentioned upfront that markets are changing, categories are changing, consumers are changing, and we've seen that disruption certainly peak out very aggressively in Asia, particularly China. We've seen a lot more of that in North America over the last 18 months. And so as we look at our business, we're obviously looking to position our brands in areas where they can best compete. And as we look at our portfolio strategies, we obviously can't be a one brand for all, particularly given the disruptions you're seeing in the marketplace.

Yes. Thanks, Mark. So you know I mentioned upfront that markets are changing categories are changing consumers are changing and we've seen that disruption.

Certainly a.

Pick out very aggressively and Asia, particularly China, we've seen a lot more of that in North America over the last 18 months and so as we look at our business. We're obviously looking to position our brands in areas, where they can best compete and as we look at our portfolio strategies, we obviously can't be a one brand for all particularly given the disruptions.

Machine in the marketplace and if we see the right opportunity for complimentary brands within our portfolio, particularly in oral care.

Operator: If we see the right opportunity for complementary brands within our portfolio, particularly in oral care, we will seek to go after those. Hello was a perfect, perfect fit for us relative to its unique positioning in terms of millennials and Gen Z, which is not a strength of the Colgate franchise. It obviously complements Tom's very well. Hello is a very lifestyle-oriented brand where Tom's is a very core natural-oriented brand, so we think it fits well. We're going to run the business independently. We're going to run the business differently and not bring it into the Colgate business. We're very fortunate to have Craig and Lori coming over to the business. I think some of you have met them. You know the strength of their leadership. You know the strength of their marketing instincts and how they think about brands.

If we see the right opportunity for complementary brands within our portfolio, particularly in oral care, we will seek to go after those. Hello was a perfect, perfect fit for us relative to its unique positioning in terms of millennials and Gen Z, which is not a strength of the Colgate franchise. It obviously complements Tom's very well. Hello is a very lifestyle-oriented brand where Tom's is a very core natural-oriented brand, so we think it fits well. We're going to run the business independently. We're going to run the business differently and not bring it into the Colgate business. We're very fortunate to have Craig and Lori coming over to the business. I think some of you have met them. You know the strength of their leadership. You know the strength of their marketing instincts and how they think about brands.

We will seek to go after though isn't Hello was a perfect perfect fit for us relative to that you unique positioning a in terms of millennials in Gen Z, which is not a strong strength of the Colgate franchise. It obviously, a complements it's well, it's it's itself very well with Tom sorry.

Hello is a very lifestyle oriented brand where comps is a very core a natural oriented brands. So we think it fits well and we're going to run the business independently, we're going to run the business differently not bring it into the Colgate business, we're very fortunate to have Craig and Lloyd coming over to the business I think some of your met them a you know the strength of.

Their leadership, you know the strength of their marketing.

Instincts and how they think about brands, we fully intend to use both of them across the Colgate business around the world to help us think about innovation very very differently and I think Craig will be a wonderful ambassador for us as we think about how we're transforming our innovation approach to the market as I mentioned earlier, we're very comfortable with the M&A that we've made.

Operator: We fully intend to use both of them across the Colgate business around the world to help us think about innovation very, very differently. And I think Craig will be a wonderful ambassador for us as we think about how we're transforming our innovation approach to the market. As I mentioned earlier, we're very comfortable with the M&A that we've made where we continue to be able to deliver against those. We have a track record of delivering successfully against M&A, and I think the reason is we're very focused. We let the businesses run independently. We maintain their cultures, but we offer them all the opportunities to flex the Colgate machine, so to speak, relative to synergies, best practices, training, you name it, and that we'll continue to do that with Hello. We'll move next to Bill Chappell with SunTrust. Thanks. Good morning. Hey, Bill.

We fully intend to use both of them across the Colgate business around the world to help us think about innovation very, very differently. And I think Craig will be a wonderful ambassador for us as we think about how we're transforming our innovation approach to the market. As I mentioned earlier, we're very comfortable with the M&A that we've made where we continue to be able to deliver against those. We have a track record of delivering successfully against M&A, and I think the reason is we're very focused. We let the businesses run independently. We maintain their cultures, but we offer them all the opportunities to flex the Colgate machine, so to speak, relative to synergies, best practices, training, you name it, and that we'll continue to do that with Hello.

Aid.

Where we continued to be able to deliver against those we have a track record of delivery successfully against M&A and I think the reason is we're very focused we met the businesses run independently we maintain their cultures, we offer them all the opportunities to add to flex the Colgate machine so to speak relative to synergies.

Practices training you name it and that will continue to do that with a with Hello.

Operator: We'll move next to Bill Chappell with SunTrust.

Well move next to Bill Chappell with Suntrust.

Bill Chappell: Thanks. Good morning. Hey, Bill. Taking a year to look back on the total relaunch, especially in North America, but also kind of worldwide, I mean, what would be your grade of it just from the Super Bowl commercial to the money spent there? I understand that it was in part done; you needed to kind of restage the platform before you rolled out new products this year. But just trying to understand, especially in light of kind of the Q4 North American results, how good was this? In line with expectations? Could the money been spent elsewhere? Just kind of your color would be great.

Thanks, Good morning handle.

So taking out a year look back on the total relaunch, especially in North America, but also kind of worldwide I mean, what would be your credit of it it just from the Super Bowl commercial too.

Operator: Taking a year to look back on the total relaunch, especially in North America, but also kind of worldwide, I mean, what would be your grade of it just from the Super Bowl commercial to the money spent there? I understand that it was in part done; you needed to kind of restage the platform before you rolled out new products this year. But just trying to understand, especially in light of kind of the Q4 North American results, how good was this? In line with expectations? Could the money been spent elsewhere? Just kind of your color would be great. Yeah. Thanks, Bill. So listen, we took a 10% price increase on that business, and we held that price increase through the year.

Money spent there and I understand that it was in part done needed to be kind of receives the platform before you rolled out new products. This year, but just trying to understand especially in light of kind of a fourth quarter North American results.

How good it was this inline with expectations to the money. Good start elsewhere, just kind of your color would be great.

Noel Wallace: Yeah. Thanks, Bill. So listen, we took a 10% price increase on that business, and we held that price increase through the year. And if you take a big core franchise like Colgate Total, that's probably the best pricing performance we've had in the better part of a decade. So from a pricing standpoint, we're quite excited.

Yes, Thanks Bill.

So listen we took a 10% price increase on that business and we held that price increase through the year and that and if you take a big core franchise that Colgate total.

Operator: And if you take a big core franchise like Colgate Total, that's probably the best pricing performance we've had in the better part of a decade. So from a pricing standpoint, we're quite excited. We've had the fastest growth on Colgate Total in over three years. So that, in its own right, suggests that the relaunch was successful. Did we have slightly higher expectations in certain geographies? Sure. But in our big markets like the UK, like Brazil, like Mexico, where we have high shares, we did very well. North America, perhaps under-delivered against our expectation. Our volume share was okay, but recall, we downsized that brand. And perhaps we would have done a little bit differently given some of the learnings we have through the launch. But overall, it drove the brand, it drove the equity, and we had a good year on oral care.

That's probably the best pricing performance, we've had in the better part of a decade. So from a pricing standpoint, we're quite excited that we've had the fastest growth on kobe totaling over three years. So that in its own suggests that the relaunch was it was successful did we have slightly our expectations and certain geography sure, but in our big markets like the UK like.

We've had the fastest growth on Colgate Total in over three years. So that, in its own right, suggests that the relaunch was successful. Did we have slightly higher expectations in certain geographies? Sure. But in our big markets like the UK, like Brazil, like Mexico, where we have high shares, we did very well. North America, perhaps under-delivered against our expectation. Our volume share was okay, but recall, we downsized that brand. And perhaps we would have done a little bit differently given some of the learnings we have through the launch. But overall, it drove the brand, it drove the equity, and we had a good year on oral care.

I will like Mexico, where we have high share as we did very well North America, perhaps under lit delivered against our expectation or volume share was okay, but we call. The downsize that brand, perhaps we would have done a little bit differently given some of the learnings we have through the launch but overall it drove the Brad that drove the equity and we had a good year on oral care.

We'll take our next question from Ali Dibadj with Bernstein.

Operator: We'll take our next question from Ali Dibadj with Bernstein. Hey, guys. Thanks. Hi. Regarding your 2020 guidance, I'd love to better understand kind of the lack of top-line growth leveraging into your bottom line. And if you back it out, it feels like it would suggest something like another up to 100 basis points, call it maybe 75 basis points of reinvestment into the business again in 2020. And so in that context, I'd love to get a sense of how you assess the return on that spend given what you've seen so far in 2019, particularly on market share. The market share continues to decline as you put it out in your press release. It's not getting better. You still have the US, Brazil, Mexico, France, China, and India, kind of your core area still losing share.

Operator: We'll take our next question from Ali Dibadj with Bernstein.

Ali Dibadj: Hey, guys. Thanks. Hi. Regarding your 2020 guidance, I'd love to better understand kind of the lack of top-line growth leveraging into your bottom line. And if you back it out, it feels like it would suggest something like another up to 100 basis points, call it maybe 75 basis points of reinvestment into the business again in 2020. And so in that context, I'd love to get a sense of how you assess the return on that spend given what you've seen so far in 2019, particularly on market share. The market share continues to decline as you put it out in your press release. It's not getting better. You still have the US, Brazil, Mexico, France, China, and India, kind of your core area still losing share. So love to hear how you think about the returns in that overall context.

Hey, guys Mexico.

And regarding your hi regarding your your 2020 guidance.

I'd love to better understand how the lack of topline growth leveraging into your bottom line.

I mean, if you back it out it feels like it would suggest something like another.

Up to 100 basis points caught me to 75 basis points of reinvestment into the business again in 2020.

And so in that context.

I'd love to get a sense of how you assess return.

On that spend given what you've seen so far in 2019 particular marketshare.

The market share continues to decline as you pointed out in your press release, not getting better you saw the U.S., Brazil, and Mexico, France, China, India kind of your core area still losing share.

Operator: So love to hear how you think about the returns in that overall context. Good. Well, let me take the latter part of your question first. I think the returns and the results, Ali, obviously a 5% organic in the fourth quarter, sequentially up from the fourth. And as we've discussed, and you have highlighted for quite some time the need to continue to invest behind the business, we think we've had played out relative to the organic performance that we delivered. On the 2020 guide, obviously just a couple of mechanics through the P&L. The Filorga as a full year on a percent of sales advertising, obviously much higher and adding a bit to the overall advertising line.

So so you know love to hear I think about the returns in that overall context.

Noel Wallace: Good. Well, let me take the latter part of your question first. I think the returns and the results, Ali, obviously a 5% organic in the fourth quarter, sequentially up from the fourth. And as we've discussed, and you have highlighted for quite some time the need to continue to invest behind the business, we think we've had played out relative to the organic performance that we delivered. On the 2020 guide, obviously just a couple of mechanics through the P&L. The Filorga as a full year on a percent of sales advertising, obviously much higher and adding a bit to the overall advertising line.

Good well, let me take the latter part of your question first you know I think the returns in the results Oh, we obviously, a 5% organic in the fourth quarter sequentially up from the fourth.

And as we met as Weve discussed and you have highlighted that for quite some time and continue to invest behind the business. We think with that played out relative to the organic performance that we delivered on the 2020 died.

Obviously, I'm just a couple mechanics through the P. and now the fund, Oregon as a full year on a percent to sales advertising, obviously, much higher and adding adding a bit to the overall advertising nine but as we mentioned upfront we have a strong focus on premium innovation that we want to continue to accelerate the investment behind our brands in our vision.

Operator: But as we mentioned upfront, we have a strong focus on premium innovation, and we want to continue to accelerate the investment behind our brands and our businesses in order to deliver long-term sustainable growth. It's early days right now. Obviously, we've got a lot of work to do this year. It's only January. A lot can change relative to the macros. You've seen a lot of uncertainty. We'll see where China plays out. Brazil, Mexico, likewise, as I mentioned earlier. India, a little bit of softness, obviously in the rural markets we're seeing. So we think the guidance from where we are today and where we sit is absolutely appropriate in terms of how we're thinking about the business. And as we move throughout the year, we'll continue to update that as necessary. We'll take our final question today from Lauren Lieberman with Barclays. Oh, great. Thank you.

But as we mentioned upfront, we have a strong focus on premium innovation, and we want to continue to accelerate the investment behind our brands and our businesses in order to deliver long-term sustainable growth. It's early days right now. Obviously, we've got a lot of work to do this year. It's only January. A lot can change relative to the macros. You've seen a lot of uncertainty. We'll see where China plays out. Brazil, Mexico, likewise, as I mentioned earlier. India, a little bit of softness, obviously in the rural markets we're seeing. So we think the guidance from where we are today and where we sit is absolutely appropriate in terms of how we're thinking about the business. And as we move throughout the year, we'll continue to update that as necessary.

This is in order to deliver long term sustainable growth. It's early days right. Now obviously, we've got a lot of work to do it. This year. It's only January a lot can change relative to the macros, you've seen alive uncertainty, we'll see where China plays out Brazil, Mexico, Likewise, as I mentioned earlier, India, a little bit softness obviously in the rural markets.

She so we think the guidance from where we are today and where we said is absolutely appropriate in terms of how we're thinking about the business and as we moved throughout the year I will continue to update that as necessary.

Operator: We'll take our final question today from Lauren Lieberman with Barclays.

Well take our final question today from Lauren Lieberman with Barclays.

Lauren Lieberman: Oh, great. Thank you. I just wanted to follow up on Asia in general, not speaking about outlook for China and coronavirus in particular at all. But when you look back, Asia had the best volume performance, I think, since 2015 and the best pricing performance since 2014. So just at a holistic level, if you could talk a little bit about sort of, again, ex-coronavirus sort of sustainability and what types of things have really triggered that uptick, and if you're thinking about that as being like a new base level for the kind of performance you can have out of the region. Thanks.

Oh, great. Thank you.

[laughter].

Operator: I just wanted to follow up on Asia in general, not speaking about outlook for China and coronavirus in particular at all. But when you look back, Asia had the best volume performance, I think, since 2015 and the best pricing performance since 2014. So just at a holistic level, if you could talk a little bit about sort of, again, ex-coronavirus sort of sustainability and what types of things have really triggered that uptick, and if you're thinking about that as being like a new base level for the kind of performance you can have out of the region. Thanks. Noel, thanks, Lauren. There was also an earlier question on our portfolio in China. I remind the audience that we obviously have the Colgate franchise and the Darlie franchise that delivers our leadership market position in China.

Just wanted to follow up on Asia in general not seeking about outlook for China in front of Iris.

But it when you look back and Asia had the best volume performance I think since 2015 and the best pricing performance in 2014, So just hit a holistic level. If you could talk a little bit about sort of again ex carnival <unk> parents are sustainability and what types of things have really triggered that uptick.

And if you're thinking about that is being like a new base level for the kind of performance you can have that are weekend. Thanks.

Noel Wallace: Noel, thanks, Lauren. There was also an earlier question on our portfolio in China. I remind the audience that we obviously have the Colgate franchise and the Darlie franchise that delivers our leadership market position in China.

No. Thanks to all I know and there was also an earlier question on our portfolio in China.

Remind the audience that we all but she had the Colgate franchise and the Darlie franchise.

That delivers arched our leadership market position in China.

Both those businesses continued to perform well, particularly the dog food business came back nicely in the fourth quarter.

Operator: Both those businesses continue to perform well, particularly the Darlie business came back nicely in the fourth quarter, was able to launch again, focused on our strategy, premium innovation, particularly around some you'd be surprised to hear baking soda products that have now become very, very popular in China and are being sold at premium prices. That certainly helped deliver not only the pricing but the volume. On the Colgate side, as I mentioned earlier, we're in the midst of a long-term turnaround here. We still got a lot of work to do relative to that business. We're pleased with where we saw the business perform. We had a good 11-11 again behind premium pricing. Our Miracle Repair product, our volcanic products that we launched in the quarter, delivered good volume and good pricing.

Both those businesses continue to perform well, particularly the Darlie business came back nicely in the fourth quarter, was able to launch again, focused on our strategy, premium innovation, particularly around some you'd be surprised to hear baking soda products that have now become very, very popular in China and are being sold at premium prices. That certainly helped deliver not only the pricing but the volume. On the Colgate side, as I mentioned earlier, we're in the midst of a long-term turnaround here. We still got a lot of work to do relative to that business. We're pleased with where we saw the business perform. We had a good 11-11 again behind premium pricing. Our Miracle Repair product, our volcanic products that we launched in the quarter, delivered good volume and good pricing.

He was able to launch again focused on our strategy premium innovation.

Particularly around some.

You'd be surprised to hear baking soda products are now become a very very popular in China and are being sold to premium prices and that's certainly helped deliver knowing the pricing, but the volume on the Colgate side as I mentioned earlier, we're in the midst of a long term turnaround here, we still got a lot of work to do a relative to that business. We're pleased with where we saw that.

Business perform we had good 11, 11 again behind premium pricing our America repair product our volcanic products that we launched a in the quarter deliver good volume and good pricing as you look outwards, obviously, we'll see what the impact of grown and what happens and try and this can be very difficult at this point to predict.

Operator: As you look outwards, obviously we'll see the impact of corona and what happens in China. It's going to be very difficult at this point to predict the sustainability of where we are right now given the implications of that. But we're certainly structuring ourselves and putting the fundamentals in place to deliver long-term sustainable growth in those markets. And at this time, I'll turn it back to management for any additional closing remarks. So no, thank you, everyone. Obviously, we'll see everyone at CAGNY. I look forward to having more discussions there. And for all the Colgate people that are listening, let me wholeheartedly thank you for your incredible support and work for the last year, and we look forward to your continued focus in 2020. Thanks, everyone. Ladies and gentlemen, this does conclude today's conference. We thank you for your participation. You may now disconnect.

As you look outwards, obviously we'll see the impact of corona and what happens in China. It's going to be very difficult at this point to predict the sustainability of where we are right now given the implications of that. But we're certainly structuring ourselves and putting the fundamentals in place to deliver long-term sustainable growth in those markets.

The sustainability of where we are right now given the implications of that.

But we're certainly structuring ourselves and putting the fundamentals in place to put to deliver long term sustainable growth in those markets.

Operator: And at this time, I'll turn it back to management for any additional closing remarks.

And at this time I'll turn it back to management for any additional and closing remarks.

Noel Wallace: So no, thank you, everyone. Obviously, we'll see everyone at CAGNY. I look forward to having more discussions there. And for all the Colgate people that are listening, let me wholeheartedly thank you for your incredible support and work for the last year, and we look forward to your continued focus in 2020. Thanks, everyone.

No. Thank you everyone, obviously I will see everyone. It cagney I look forward to having more discussions there and for all the Colgate people that are listening.

Let me a whole hardly thank you for your and incredible supporting work because last year and we look forward to your continued focus in 2020. Thanks, everyone.

Operator: Ladies and gentlemen, this does conclude today's conference. We thank you for your participation. You may now disconnect.

Ladies and gentlemen, this does conclude today's conference. We thank you for your participation you may now disconnect.

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