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Worth notingAgendaCLFri, Oct 30 Time to be announced1 min read
Colgate-Palmolive sells toothpaste and other oral-care products, household goods and pet food, offering a view of purchases of everyday essentials. Recent consumer spending rose in dollars, but higher prices absorbed the increase, and some consumer brands plan further price rises. The useful question is whether customers bought more, not simply whether the company collected more money. Higher prices can lift revenue while encouraging shoppers to switch to cheaper brands.[1]
Read sales volumes alongside pricing and costs. Growing volumes with prices sufficient to cover costs would suggest the brands are retaining customers, supporting profit expectations for household-product companies and their suppliers. Revenue sustained by higher prices while volumes fall would raise questions about peers' pricing power and create opportunities for cheaper and retailer-owned brands. Price increases that protect producers' profits also leave households less to spend elsewhere. Watch margins and volumes across markets; this company's performance cannot stand in for all consumption.[1]