Colgate Judiciously Spends to Support Its Competitive Prowess Despite Stout Inflationary Headwinds

While headwinds abound (stemming from rampant cost inflation and a strangled global supply chain), we think Colgate-Palmolive is navigating the uncertain landscape quite astutely. With CEO Noel Wallace at the helm, the firm's strategic focus has centered on elevating research, development, and marketing spending (on its core mix, within adjacent categories, and throughout the digital realm) and responding to evolving consumer preferences more expeditiously (bringing products to market in just six to 12 months in some cases, down from 18-36 months historically). The prudence of this course has been evident in that Colgate has chalked up 11 consecutive quarters of 3%-5% organic sales growth (in line with its long-term aims).