1Ok colgate

Ian Cook, President and Chief Executive Officer of Colgate Palmolive Company in his letter to the shareholders tells us that in 2009 Colgate’s operating profit, net income and diluted earnings per share all increased at a double-digit rate and were at record high levels. The Global sales as reported were $15,327 million. The balance sheet and cash flow continued. Working capital improved by 290basis points, from 2.5% to sales in 2008 to -0.4% to sales in 2009, and operating cash flow increased by 42% to a record $3,277 million for the year. The Company’s strong cash generation and positive growth momentum led the Board of Directors to authorize a 20% increase in the quarterly dividend rate, effective in the second quarter of 2010, on top of the 10% increase that took effect in 2009. InFebruary 2010, the Board of Directors also authorized a new share repurchase program, under which the Company plans to purchase up to 40 million common shares over the next two years.
Colgate is positioned well for the future due to our financial strength, market leading positions in many of our core categories around the world, a proven business strategy that has helped us succeed in strong andweak economic environments, and a dedicated global team of Colgate people working together to achieve our business goals. Colgate ended a year marked by external economic challenges with excellent results and strong business momentum. As they move forward, they remain extremely focused on understanding today’s consumer mindset and on delivering value-added new products at all price points globally.They are also firmly committed to further strengthening their relationships with the profession and customers and to becoming even more efficient and effective in business processes. They expect competitive and economic challenges to continue.












“M D &A”

Colgate-Palmolive provides products that make consumers lives healthier and more satisfying. The Company is focusedon two product segments Oral, Personal and Home Care; and Pet Nutrition. These product categories are based on their capacity to maximize the use of the organization’s core competencies and strong global equities and to deliver sustainable long-term growth. The Company operationally is organized along geographic lines and competes in more than 200 countries and territories worldwide withestablished businesses in all regions contributing to the Company’s sales and profitability. The Oral, Personal and Home Care segment is operated through four reportable operating segments: North America, Latin America, Europe(South Pacific) and Greater Asia(Africa), all of which sell to a variety of retail and wholesale customers and distributors. On an ongoing basis, management focuses on a variety of keyindicators to monitor business health and performance to help to maintain business health and strong internal controls. These indicators include market share, organic sales growth, gross profit margin, operating profit, net income and earnings per share, as well as measures used to optimize the management of working capital, capital expenditures, cash flow and return on capital. Also, the Companyfocuses the organization on initiatives to drive and fund growth to achieve its business and financial objectives. For this the Company has developed key initiatives to build strong relationships with consumers, dental and veterinary professionals and retail customers.


75% of its Net sales generated outside of the United States, the Company is exposed to changes in economic conditions andforeign currency exchange rates, as well as political uncertainty in some countries, all of which could impact future operating results.
Colgate-Palmolive expects global macroeconomic and market conditions to remain highly challenging. While the global marketplace in which they operate has always been highly competitive. The Company has recently experienced heightened competitive activity in...