Colgate-Palmolive Company’s (CL) Management Presents at Deutsche Bank dbAccess Global Consumer Conference 2022 (Transcript)


Colgate-Palmolive Company (NYSE:CL) Deutsche Bank dbAccess Global Consumer Conference 2022 Call June 15, 2022 3:15 AM ET

Company Participants

Panagiotis Tsourapas – Group President, Europe and Developing Markets

John Faucher – Chief Investor Relations Officer and Senior Vice President of M&A

Conference Call Participants

Steve Powers – Deutsche Bank

Steve Powers

Good morning. We’re going to get started with the next session here. And for that next session, I am thrilled to welcome Colgate to the stage. Joining us from Colgate this morning are Panagiotis Tsourapas, who is Group President of Europe and Developing Markets; as well as John Faucher, Chief Investor Relations Officer, as well as the Senior Vice President of M&A.

What we’re going to run in this session is that Panagiotis will kick us off with about 10 or so minutes of prepared remarks and then we’ll jump right into Q&A. And with that, I’m going to hand it over to Panagiotis.

Panagiotis Tsourapas

Thank you. Thank you, Steve. Good morning. We are very happy with John to be here after we present the usual disclaimers. To talk to you briefly about our company, representing the 34,000 diverse and dedicated Colgate people serving their consumers in over 200 countries and territories around the world. We’re going to talk briefly around the key components of our focused strategy and then we will reiterate some key points we talked about in our first quarter call.

As Colgate, since several years, we are deploying a very tightly focused category strategy [anchored] [ph] around oral care, pet nutrition, personal care, and at home care. And there is very interesting component and synergistic component around these categories, which is the fact that many of our brands and categories are driven, but what we call a profession recommendation model.

Toothpaste is recommended by dentists. Pet nutrition is recommended by veterinarians. Some of our personal care brands are recommended by dermatologists. For instance, EltaMD is the number one brand for sun protection recommended by dermatologists in the United States. And since we are in France, Sanex, our leading body cleansing brand is the number one recommended by dermatologists here in France. And this enable us to drive a lot of synergies across the different business units sharing best practices, transferring people, and deploying effective digital and e-commerce strategies in today’s world.

Colgate, we are very proud to have this brand and to represent actually this brand. It is the most penetrated brand in the world. It is the brand that is touched most by consumers in our planet. And this also reflects the leadership profile of our business. Most of our business is in brands that they have either number one or number two position, as you see the categories in that slide.

Beyond all Colgate Toothpaste we are number one in manual toothbrushes process, we are number one in Vet Clinics in the U.S. or number two in the other categories. Organic sales growth, consistency of delivery is I think something that characterizes very well the performance, the last years, for 13 consecutive quarters, which is three years and a quarter, we are delivering organic sales growth within or above the targeted range that we have set, which is 3% to 5%.

Despite significant disruptions, and challenges that we all know will did face this period. And I think this is reflecting the resilience, the effectiveness, and the operating excellence of our teams all around the world. And we grow our businesses across our categories. You see that we have consistent net sales growth in the last years and we grow our net sales in all four categories, but also in all the geographic divisions we run our operations.

So, our sales growth is broad based. Another key point of our strategy and a necessity in today’s world is building new capabilities. And I will briefly talk about three areas. Our focus on innovation, on driving premiumization, and driving more breakthrough and transformational innovation around our categories. Just some few examples to give you some flavor on what we’re talking about. This is the latest widening, premium widening offering that we are rolling out across the world.

Probably some of you who are in – you have [kept] [ph] the stock, we have a unique hydrogen peroxide technology for widening products, but for regulatory reasons cannot be deployed in many parts of the world. So, we created a non-hydrogen peroxide formulation that delivers the same benefits and we are rolling it out as we speak in the non-peroxide markets. And this is the product that we are rolling out at very significant premium across Asia.

In the United States, we just launched the first 5% peroxide toothpaste at $10 price point, the most expensive toothpaste that we have launched ever, actually so far. And as the marketing team of the U.S. who was telling us with John who had a meeting with them last week, this is the most successful launch in the U.S. the last couple of years. And you can see some of the other premium widening devices that we’re bringing to the market that do deliver the same quality of [widening] [ph] benefits that people can get in a dental office at their home.

So, great opportunity for premiumization and for incremental business. A good example of a premium innovation in the home care category under our Suavitel brand, which is the leading [fabric care equity] [ph] in Latin America. A good example around products, products is the leading antibacterial brand that we have in developing markets where we have created a new formulation, which is naturally based, delivering the same antibacterial benefits without the chemicals that we had in the past, something which is very important and relevant for the consumers today.

And Hill’s, the restage, relaunch of Science Diet was a key part of our success in the last years for Hill’s, and we’re now relaunching and repositioning our prescription diet, which is our veterinary recommended part of the business. [New pack, new tables] [ph] for those of us that we have dogs, we know how important the shape of the cable is for the attractiveness of the food and a new range of digital tools to support our engagement with the consumers and with the veterinarians.

I would say, Hill’s, it’s one of our businesses that has excelled significantly and it’s leading in the area of digital marketing, performer marketing, and personalization. And another interesting product is our latest prescription diet, which is called Derm Complete. This is a breakthrough nutrition that manages food and environmental sensitivities for dogs. And it’s very interesting how this has been developed because dogs cannot talk to tell you how they can react to different foods.

So, we have used wearable technology, so we can measure how they scratch and how they sleep to develop these products. We are very excited with this innovation. E-commerce, digital, data, and analytics is something that we need to excel and we are making great progress. We grew e-commerce digital sales last year by 27%, they represent today 13% of our sales.

Over half of our media are deployed through digital and we deploy the highly effective programmatic methodologies in 80 countries around the world effectively in every country that this kind of methodologies are available. And this has enabled us to improve significantly the return on investment of our digital spending having far higher productivity from our efforts.

And we have embarked the last years in a significant effort to upskill our organization in these new capabilities and these new skills, and the results reflect this effort. Revenue growth management is one of our core competencies and capabilities. We have a very clear toolkit of seven levers that we deploy around the world. And particularly nowadays that pricing is far more important for mitigating the significant cost increases. We put a lot of focus there.

And just a simple example to give you some flavor on how this is applied in the market. Brazil is one of our largest and most important markets. Our toothpaste share will represent over nearly three quarters of the market. So, we have embarked in a very consistent and systematic effort to premiumize our portfolio. And you see the results of this effort. We put the premium part of the business from 37% to 40% in 2021 versus 2020, and we continue on that path.

Finally, just a few comments on what we said in our first quarter call. We raised the organic sales growth guidance from 3% to 5%, to 4% to 6% for the year. Our pricing was accelerating during the first quarter, we did reach in March at high single digits level and we expect this to continue for the remaining of the year. We experienced as, it’s clear everybody in our industry significantly higher raw material and logistic costs, higher than what we forecasted even last January.

And as a result, we project base business EPS to be down at mid-single-digits. And we’re working very hard obviously to offset this increased costs. We are facing with 1.2 billion headwinds in raw materials inflation in 2022. We are accelerating our funding the growth savings program. We are implementing our global productivity initiative, which is going to give us meaningful savings on an annualized basis, and we are deploying fully our revenue growth management toolkit, driving, as we said, at high single digit pricing looking forward.

So, these were our opening comments and we can have ample time, I guess, for Q&A. So, thank you.

Question-and-Answer Session

Q – Steve Powers

Alright. Perfect. Thank you, Panagiotis. Maybe we pick up where you left after on the sort of the commentary coming out of the first quarter. I take that more as a reminder of your outlook now [Multiple Speakers].

John Faucher

Yes. So that is a reminder of what we said on the first quarter call. It’s not new guidance or anything like that or reaffirmation of guidance, which is our normal policy.

Steve Powers

Yeah. Okay. So in that context, as you said, you had called for cost inflation to progressively build through the year. As you were looking at the cost environment today, just a little bit level set as to how that cost environment is progressing relative to your outlook? Are there pockets that are running, you know, higher? Are there pockets that are showing you more relief? Just a little bit of perspective on how you’re viewing current costs.

Panagiotis Tsourapas

I would say that one word that could characterize the cost environment is volatility or extreme volatility, particularly on the raw materials which are connected [with oil like] [ph] prices. You see how oil fluctuates on a daily basis is based on geopolitical events from $100 to $120, and this obviously impacts the raw packing material costs.

I think by and large what we see for the year is that the on-cost is going to at the range of what we said, probably some of the logistic complexities that were created by COVID, should ease down, since the industry is bringing more capacity. But I have to say, we have seen so many increases in the past that we don’t count on that. We deploy commercial plants, we deploy our pricing, our promotional plans, our innovation plans against these headwinds.

So, where effectively would be covered and would be able to deliver according to our guidance, whatever it happens. And this is the prudent thing to do I believe.

Steve Powers

Yeah. And a similar question, there were a number of supply bottlenecks that you’ve been dealing with progressively over the last few quarters inclusive of the first quarter. Those seem like they had largely shown relief as you exited the first quarter, just, is that a fair read? And are there any areas of supply disruption that you’re currently most concerned about?

Panagiotis Tsourapas

I think it’s a fair statement. When we see the [case field] [ph] rates, the service levels around the world, are being improving, particularly in areas that we’ve had some challenges as we have talked about like North America. We are back where it should be. And this is reflected if you follow, for instance, the North America scanning data. These improvements are clearly visible.

So, I think it’s a fair statement. They are by and large behind us. Now, what nobody can predict is where the next disruption is going to be. If China decides to shut down, I don’t know, half of their provinces because of COVID or if a country decides to stop exporting and [indiscernible] own packing material, I don’t think that this is something that anybody could predict, but I think we have built enough buffers in our assistance through safety stocks, through contingencies. We learned all this in the last couple of years that we should be able to [cope adequately] [ph].

Steve Powers

Okay. Sure. And the other the other topic that is quite, you know, pressing, which also no one can predict is around price elasticity and the strength of the consumer. The general consensus, I think, at the conference so far, is that so far, consumer demand is pretty resilient, pricing is being implemented reasonably successfully and is being accepted by retailers and consumers. What is your perspective on that? And, you know, I guess, where are you most watchful of a potential break in consumer demand as we go forward?

Panagiotis Tsourapas

I would agree by enlarge for the statement. I think the volume elasticity we see to our pricing efforts even in prices that we have taken – regions that we have taken high double-digit pricing or in regions that we have raised prices after many years is that volumes are developing as expected or even slightly better. So, I would expect that this would probably continue.

However, I think it is totally unknown, which is going to be the impact in consumption by the overall growth of inflation. You see here in Europe, here in France, we have 5%, in Germany I think we have 10%, in the U.S. we have 10%. So, definitely it might be a consumer squeeze that would make the development of volumes quite unpredictable.

As far as we are concerned, we believe that we are very well positioned to compete and win in this space because one of the unique elements of our portfolio is that we compete at all price points, and we have a very wide availability. So, we are at all price points and across channels. If I take Brazil, for example, an example we quoted, we have toothpaste offerings close to BRL30 billion in high-end drug markets, drug stores in São Paulo, and we have to [indiscernible] small sizes in small stores in the provinces of the country.

So, wherever consumer could shift either pricing wise or channel wise, we have a very competing offering. So, this might competitively turn to our abundance. And if you see how we have, which were the results in this, kind of crisis periods. This specificity of our portfolio and our executional ability makes us emerging stronger actually.

Steve Powers

Does it change at all the approach to premiumization that’s been a hallmark of last couple of years? You mentioned the toothpaste in the U.S., most expensive toothpaste yet, most successful launch yet? Is that a byproduct of demand looking backward or can that strategy hold as we go forward into a more stressed environment?

Panagiotis Tsourapas

This is interesting. I think no. Because even in a distressed country, even in an emerging market, there is still the 10%, 15%, 20% at the top of the pyramid that I would say, I wouldn’t say it’s immune, but it’s less affected by all these trends. So, there is still room for a premiumization. So, we will pursue this strategy. What normally happens in this kind of situations, the people who are being squeezed or the brands or the positions are the ones in the middle.

So, the people who spend at the top continue spending. Some people go from the middle, relatively to the top. That’s why for us could might turn to our advantage because this is where we have a very strong portfolio in our core business and the best availability and distribution network from [indiscernible].

John Faucher

Steve, if I can just add to that. So, we index at about an [89.90] [ph] around the globe in terms of the toothpaste category. So, even if the growth in the higher end segment slows a little bit, there’s still a market share opportunity there. And a lot of that is based on indications, right? So, a lot of that can be based on sensitivity. It can be based on gums. It can be based on [white] [ph], and so if we go in with the right indication, with the right technology and innovation, we still have the ability to gain share in those segments, even if there is some overall weakness in the category.

Steve Powers

And one of the things, one of the attributes of your outlook coming out of the first quarter was a maintained A&P outlook. So, I guess if I coupled that with your comments just now, is or is the company viewing this period’s potential moment of acceleration, doubling down a moment of offense as opposed to moment of defense where you can grab additional share as competitors potentially pull back? I guess, simply, more simply put, is this a period of offense for Colgate or is the Colgate on a more defensive stance?

Panagiotis Tsourapas

I would say that this potentially could be a period that is the strength of our brands and the strength of our execution would play to our advantage. And for this reason, we maintain our A&P posture, so we are able to continue strengthen our brands. If you see one of the things that happened the last years, if you see the brand health metrics around the world, if I take the Colgate brand or if I take the elmex brand here in France, we are improving.

So, our brands are becoming stronger. Hence, to your point, this might be an opportunity for us by maintaining our advertising, by optimizing our execution, which is one of our strong points to come out of this period of disruption even stronger. This is what we discuss with our teams and this is our objective moving forward.

Steve Powers

Great. I mean, maybe it would be helpful if maybe go around the world’s kind of region by region, business by business, and you know, just a little bit of level set on what the status is. And really, if there are one or two milestones to call out over the balance of the year, that is most important for each region, I think that would be helpful?

Panagiotis Tsourapas

If we go from, I guess, from east to west, I think our Asian business overall is doing very well. Obviously, Asia is still the region that is being impacted the most because of COVID. They are still closures, shutdowns, limitations in movement. Our market share in Asia are in a very good trajectory, particularly in China we are very pleased with our performance.

Colgate is the fastest growing brand actually in the country, we did extremely well in e-commerce that we nearly quadrupled our market share the last years and we are the fastest growing brand in a very competitive environment, and this is a very good indication of the effectiveness of our innovation and execution efforts.

We are totally restaging our Darlie brand, which is the biggest brand that we have in China with totally new innovation plans and we see very good trajectory there. Our Indian business is doing well. We all read about the challenges that the Indian economy faces, particularly in rural areas, so nobody is immune from this [challenge] [ph]. So overall, apart from the external disruptions, we feel good about the business in China.

Moving West, our Africa Eurasia business obviously is impacted by the disruption in Russia and Ukraine. but the rest of the business, sub-Sahara and Africa, South Africa, our Middle East business is doing very well. Europe is probably the most challenging environment because of high inflation and pricing.

We work a lot with our European retail partners to [pass] [ph] our, the necessary price increase and we’re making a lot of progress and we see very good trends in our market share. For instance, we are discussing with our German team yesterday. We reached in Germany the highest ever market share that we have in toothpaste, growing all our three brands, elmex, meridol, and Colgate, which is an indication that what we do commercially is working.

We talked about our U.S. business. You see the [scanning data] [ph] that we are improving significantly. It’s public information. I don’t need to comment. our Hill’s business is doing exceptionally well and we’ll continue doing so. And in Latin America, we are very buoyant. You see, in Latin America, the last three years, we are posting organic sales growth of double-digits or high single-digits. We have implemented our pricing plans.

So, we will continue this trajectory. So, overall, we are not free of challenges. There is a crisis popping up every day in one of the countries, but I think by and large, we see good momentum around the businesses, in the business around the world.

Steve Powers

Great. A couple of things to pick up on that. So, the prescription diet launch, the H&H, the Darlie relaunch in China, take it that those are on track, what’s the cadence of impact in terms of how that should – how we should see that flowing through results over the balance of the year in terms of timing?

Panagiotis Tsourapas

Darlie is the brand that has the wider stability and distribution in China. And China is very complicated. In terms of distribution. We think that, for instance, we’re here in France, we work with our team for two days and we talk about complexity. and a comment I made was, imagine if you operate in China. So, to do this big transition for in the beginning of the year, we had to slow down as well to do the – to change the product.

Now, I think the new products are in the majority of the stores. And the full force of our activities is starting being deployed as we speak. So, I think we should start seeing the real positive upside as of this month, second quarter, third quarter and first quarter of next year.

Steve Powers

So, should shipments in the second quarter and then shipments [Multiple Speakers].

Panagiotis Tsourapas

We started around March. It will take two, three months to do all these transitions and then you fully deploy your commercial plans.

John Faucher

And then for Hill’s, I mean, obviously, the growth has been strong for years now. So, I’m not sure you necessarily going to see a step change in – from the prescription diet launch. Prescription diet is about 50% of the business. And so, this is really about adapting, taking some of the changes that we learned from the Science Diet re-launch in terms of better packaging, better messaging, better digital communication, and working with that to increase the penetration of these therapies, right. And one of the things that happened is that’s often do not prescribe therapeutic pet food when a pet needs it.

So, I’ve got a 13-year old Labradoodle. My 13-year old Labradoodle probably should have been on JD, which is our arthritis formula sooner, our vet didn’t recommend that. So, we went to the vet and said, he’s having this issue. Now, he’s on JD, which I can speak personally is a very expensive pet food from that standpoint. So, very good margins. There’s an opportunity to work with the vets to understand when these foods can be prescribed more often to provide better health outcomes for the vet, and that’s really where the science comes through on this.

So, we’re going to see that launch beginning in Europe and then rolling to the U.S. So, I think you’ll see that begin to roll through, but the underlying prognosis for Hill’s from a growth standpoint still remains very strong. And I’m not sure necessarily going to see a step change there from the prescription diet re-launch.

Steve Powers

Okay. The other thing that as you went around the world, consistent with what we’ve heard, emerging markets seem – used the word buoyant for Latin America, but in general, I mean, outside of the obvious points of disruption, seemed pretty healthy. Momentum seems pretty strong and the concerns that most of us end up talking about are very much centered on the developed markets. First of all, is that fair? Second of all, are there risks to Latin America or emerging market demands that are top of mind for you as we go forward?

Panagiotis Tsourapas

There are always risks, but I would say having worked in all emerging markets around the world, I say that what we frequently don’t realize because most of the people who do the assessment come from developed markets is that how resilient people are. For us here in Europe, having 5% or 10% inflation, it’s life changing. This was like 30, 40 years ago or a devaluation could be something that is critical.

For people in Argentina or in Brazil or in other countries, it’s something that they have experienced many, many times. So, it’s not a catastrophe. It’s another crisis before the next one that might come and people think how they would cope with that. I was in São Paulo two weeks ago, inflation is high, cost of living is high, but the city is buzzing.

People are going on with their lives. And I think this fundamental element of the consumer psychology reflects the fact that emerging markets are sometimes more resilient than the developed markets where people have far more disposable income. So, my personal view is that unless there is a major event or a major external disruption, I wouldn’t see any reason that this trend would not continue in this round of crisis, particularly in Latin America. What we see so far commercially, sales wise, the consumer reaction is quite good.

Steve Powers

Yes, good. For those of us in the last session, we heard Unilever talk about a move to go from a geographic centric, you know, corporate structure to one of this category based, obviously, P&G made that move 20+ years ago. Colgate, outside of Hill’s remains geographically centered. Why is that the right structure for Colgate? And what are the advantages of being structured the way you are?

Panagiotis Tsourapas

That’s an interesting question. We had a lot of this debate and I [love this] [ph] question when proper changed their [structure] [ph]. I would say one of the core competencies we have as a company is what we call winning on the ground. We have a very global business. We operate in many, many countries in the world. So, being closer to the market and have accountability and responsibility for the P&L to the people who manage the countries, we believe is a cornerstone for our success the last years.

Simply the world is too complex to have one person located somewhere to do promotional plans from Australia, China, South Africa, Brazil, and the United States. It is simply [to complex] [ph]. This has been our assessment so far. And if you see the results, let’s take the last 20 years that we have applied that model, not take a quarter or take over a long period of time. Take our results the last 20 years, organic sales growth versus operations that are being structured by category.

I think in most of the cases, our organic growth results are better, which might indicate that for the structure of our portfolio, might be a more optimum structure. This being said to caveat here. The first is, we are not a decentralized organization. We have a global marketing function. We have category strategies that they are global. Strategic clarity, global priorities, global R&D, global innovation, global supply chain, it’s the one of the key cornerstones of our operating model.

What we have originally and locally, it’s the accountability for execution and we connect this accountability with a P&L responsibility. That’s why this brings better results. Second [caveat] [ph] is that we always evaluate our operating model, so the world is changing. Technology brings new possibilities; retail channels are evolving. If in the future, the world changes and we see that there is a very different model. Who knows? Nobody could say that it’s structured. It’s perfect forever. Simply for us, as I said, when you see the results has worked well a lot of times.

John Faucher

Steve, if I can just add a couple of examples that sort of layers on Panagiotis’ thoughts about how you have to also manage the categories from the center, right? So, it’s not completely decentralized. So, he talked about the Protex Flaxseed formula. Okay. So, this is something that was developed at the center, natural ingredient to provide antibacterial benefits and we have that, that’s now been rolled out on Protex globally.

So that includes Latin America, that includes South Africa, that includes Asia, right. So, we’re able to get that innovation across the globe. Same thing with whitening where we’re driving a more global whitening strategy despite the fact that we have different rules market by market about hydrogen peroxide. And then finally, and I can ask Panagiotis to talk about this, you look at the rollout of elmex and meridol, right.

So these are brands that have a European heritage, a very specific business model and channel strategy. and we’re rolling them out across the world with that channel strategy intact, which takes a view from the center that, okay, we need to make sure we hold on to the equity of these brands as we roll them out globally. I don’t know if there’s…

Panagiotis Tsourapas

No, that’s a very good point because we should not see conceptually regional or category strategy are mutually exclusive. The point is, how you merge them. If I take the example of oral care, take elmex which are therapeutic brands. We have a very clear global footprint and playbook on how we deploy these brands. Then we take this playbook, we deployed it after Germany and Switzerland to Italy and France, their first growing brands by the way, in both countries. And then we take this playbook and we assign the responsibility to implement it with a proper supervision to our team in Brazil. The fastest growing brand in Brazil.

We do it with meridol to South Africa, fastest growing brand in pharmacies in South Africa, in the Middle East. So, it is a combination that there is central supervision, central strategy setting, best practices at sharing, avoid [indiscernible] in formulations or in products, but local, connection between responsibility and accountability, which leads to superior execution.

Steve Powers

Great. does the emphasis that’s been placed on digital competency, technology inside the company facilitate that? Because there has been a step-up in focus? We had a slide that spoke to that. I think there’s been reorganization of how technology, you know, fits in with Stan and Mike Crowe at the top of the company. Can you talk about, you know, build on what you said in association with that slide, just talk about the benefits of those investments in technology. We obviously see the e-commerce percent of sales tick-up, but I’m thinking more day-to-day in terms of speed and agility and how technology may enable some of that?

Panagiotis Tsourapas

Absolutely. I think Noel has been clear for years from this, and he has personally spearheaded this effort. And the last three years we have done great progress. We have done great progress on digital commerce, data, e-commerce, omnichannel, go to market deployment, which is beyond it’s far more complicated because everything is emerging there. We have upskilled our organization as we discussed, but we also have brought into the organization experts that helped us accelerate in many areas.

So, we see a lot of benefits, first of all, in our communication efforts. We see consistently higher ROIs in digital efforts. We see faster deployment of ideas through the structure we have to share best practices around the world through our central function. So, the ideas now travel much faster than in the past, and we should not forget that as a company, we pioneered actually in our industry a totally integrated operating model through the SAP platform that we are there I think for 25 years.

So, we invoiced to a central location. All our plants are fully integrated, and the biggest benefit we did see during COVID that we were able to have real time information across the world, which are the supply chain implications, how we can shift production how we can find alternative sources of products in areas that we had disruptions. How we could even divert materials.

So all this, I think, might be in the background, but has been a great enabler to the consistent sales growth results that we shared before because to deliver consistent sales growth in a period of extreme disruption is not easy. And all these efforts have helped us a lot.

Steve Powers

You got about a minute left. So, I guess, as a final question. Much of the focus, at least, from my perspective that Noel placed on digital competency, as well as premiumization came from, I think, a realization that Colgate was behind on those [backs] [ph]. If you were to benchmark and score yourselves on premiumization efforts and digital competence today, how do you benchmark and versus not only your aspirations, but versus peers?

Panagiotis Tsourapas

Difficult to tell. I would say that we are making steady progress in premiumization, but we have room to go. And particularly in our oral care business and the innovation plans, the technology ideas that we have ahead of us make me very optimistic that we will get there. In terms of digital deployment e-commerce, I don’t want to say that we are at par because you should never say so, you should always try harder.

We are not the largest FMCG company, so which was [indiscernible] saying we’re number two, so we try harder. So, by definition, we need to try harder, but I think we are competitive. And I say that because when I see our results in all the key markets, our market shares are doing pretty well. Actually, they are growing. We talked about Germany before. I can talk to you about many markets. So, this indicates that what we do is working together with our organic sales growth results.

Steve Powers

Very good. On that note, we’ll close. Thank you. Panagiotis, thank you, John.

John Faucher

Thanks, Steve.

Steve Powers

Thanks everybody for joining us.

Panagiotis Tsourapas

Thank you.



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