Tomahawk, WI 01/30/2014 (BasicsMedia) – At a time when most major brands tend to focus on either developed or emerging markets, it is refreshing to see that Colgate-Palmolive Company (NYSE:CL) has found a way of striking the perfect balance between the two to its benefit. According to the financial results published during the course of 2013, it is clear that more than 50 percent of the company’s earnings were from the emerging markets. What this shows is that CL has invested heavily in the emerging markets and is now reaping the benefits of its earlier decision. The good tidings appear to be far from over.

Colgate-Palmolive Company is currently valued at more than $61 billion, and the company’s exposure in emerging markets is one of the highest among its peers. The key emerging markets that CL depends on include South Africa, Brazil, and India. However, the fact that it does not depend solely on emerging markets for revenue, has protected Colgate-Palmolive from the negativity that it would have suffered due to currency weakness from the three countries mentioned herein. Currency depreciation in these markets would have hurt CL’s businesses.

Demand for CL’s products in the emerging markets mentioned above has suffered as a result of the currency weaknesses. This is due to inflationary pressures that have cropped up in these regions to the detriment of CL’s outlook during the past year. The situation would have been worse for Colgate if it had not found a way of perfectly balancing the needs of its clients in developed markets, with those of its customers in emerging markets. Unfavorable exchange rates in the emerging markets have also hurt CL’s businesses, although it has handled this well.

Colgate-Palmolive is not the only global brand that has suffered from too much exposure to emerging markets. Its nearest rival in this industry, Unilever, has seen its sales and revenues take a slight dip due to the exposure it has on emerging markets. Currency headwinds in emerging markets will always affect the manner in which companies such as CL perform, by taking a heavy toll on revenue. Therefore, Colgate-Palmolive deserves to be celebrated because it has found the ideal way to balance its performance on these two very important markets.

As a global brand, CL cannot afford to choose one market over the other one. What this means is that it does not have the luxury of choosing developed over emerging markets or vice versa. It will always have to work hard to balance the two, lest it loses its ranking as one of the world’s top brands. It has achieved more than average market growth as a result of its balancing act between developed and emerging markets, and this has helped it to reduce or minimize the impact of currency devaluations that have been too rampant in the latter.

Thus far, as a direct result of its investments in both developed and emerging markets, CL has continued to outperform its nearest rivals. As it keeps on introducing new innovations in the market, and continues to launch newer products, while carrying out cost-cutting measures and marketing heavily, CL has achieved what none of its peers have managed to do in the last one year.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.