CL
#No, no, <UNK>, that is straightforward leverage.
Our overheads, our dollar overheads, were actually down year on year, with the benefits we're getting from the restructuring program.
But there is a lot of overhead that is dollar-denominated.
And when you have the downward pressure of 13% foreign exchange on the top line, you end up with a leverage negative, and it is entirely traceable to that negative leverage.
I don't know.
The only other mix in it is the mix of countries.
So it may have been a country mix issue.
We'll have to get back to you on that.
I don't have the answer at my fingertips.
The ---+ what do you call it ---+ corporate overhead is flat.
So as I answered before, on this quarter, it's definitely leverage.
And your question on spending is.
The oral care organic sales were better than the Company average, number one.
Number two, in terms of total spending, you're right.
The trade spending as a ratio is a multiple of over 3 times the traditional advertising spending.
And relative to the category growth rates, <UNK>'s question was to do with volume.
And my answer to the question, this balance between volume and price.
And he was asking whether the volume was bottoming out, and would come back.
And I think the answer we gave was, you would expect that balance to come back, once the higher pricing that has been taken had worked its way through, and that we didn't expect that to be earlier than 2016.
And the answer is, we're not going to get into that level of detail.
Hey, <UNK>.
We have both.
The local tend to be more country specific, Columbia and Mexico.
So they tend to be both.
And if I said it, then I apologize, I didn't mean to say it.
We're not waiting on anybody.
We have been taking pricing in Latin America.
And I would further say, when you look at the breakdown of raw materials in today's world, many of those raw materials are dollar-denominated.
So even the local competitor is going to be hit with the local currency transaction impact of raw materials coming into the country.
So I would say that the incentive to price is fairly elevated, across the board.
No, we don't ---+ again, we're not going to get into that level of country-by-country detail.
Yes, I think when you look at the European environment, obviously, it is our lowest-growth area of the world.
I think the good news is that, although pricing has been consistently negative in Europe, if you look at the three quarters this year, it has become positively less negative.
Unfortunately, we had the volume negative in the third quarter.
And I would say, we would say that that is going to come back.
And we're certainly planning for positive, organic growth, going forward.
Yes, the only thing I would comment to, <UNK>, is that we had a situation in our Europe West grouping, which is essentially our Germanic grouping.
Which had to do with the transfer to a new distribution center, which disrupted the shipments of that operation specifically in the quarter.
So I think ---+ I know Europe was in part affected by that, on the volume side, which we see A, is a one-time, and B, already corrected and coming back in the fourth quarter.
But it did have an effect beyond the usual market travails in Europe.
Yes, I ---+ again, you're right, it has to do with the pricing.
You can see that the pricing, of course, is more elevated than the prior two quarters in Latin America.
And we took strong pricing in Brazil, which had an impact on volume.
And usually the way that works is that, as I said earlier, once the pricing works its way through, then the volume comes back.
The categories are still growing mid-single-digits, so we hope things stay to the normal cycle of events.
No.
The ---+ okay, so third quarter, the prior-year gross profit was 58.6%.
We got 140 basis points positive from pricing.
Between our funding, the growth savings and the restructuring, we got favorable 270 basis points.
So funding the growth, continuing to do very well on material pricing, there was a headwind of 390 basis points.
And so the offset of the resulting 120 basis points negative, to the 140 on pricing, gets you the plus 20.
And meaningfully, over half of the 390 basis points negative was to do with the transaction impact of foreign exchange.
Hey <UNK>.
No, <UNK>, sorry.
What I said was, the official price increase that we were granted was 74% in the fourth quarter of last year.
So ---+ on some businesses.
So that is (multiple speakers).
Yes.
I'm not sure I would go all the way there, <UNK>.
I think we're comfortable with the 4% to 7% range.
I think your sense of pricing is right.
We still have a recovery to move the gross margin.
Because to get to flat on the year, we have to be, as you will calculate from the squeeze, we have to be up on the quarter.
So it will be within our range.
I think we're thinking, if you take the nine months, it would be around there.
Hey, <UNK>.
On the first, again without being glib, the answer is a simple no.
Particularly in our segment of the pet nutrition business, which tends to be the more premium end.
So we have not seen it creep into speciality.
Cash repatriation, Venezuela is Venezuela.
Absent Venezuela, it's the same as it has always been.
So we have the ability to repatriate.
Sometimes timing is variable, country by country, but no change from prior.
Sure.
Hello, <UNK>.
Yes.
I probably could, but I'm not going to, I don't think, <UNK>, because we're not going to get into that level of detail.
I would say to your general point on digital, it's less category specific, although the category may be linked to the user.
It's more, which user you're trying to get to, and how they access.
We just went through an extensive review, for example, in Latin America.
The majority of viewers, millennials, they happen to be a growing majority of parents.
They happen to do an awful lot on Facebook, and they happen to be avid viewers of YouTube videos.
So if you want to connect with that group, then the best way to get your advertising message to that group is YouTube videos, and to do so in a way that is purpose-driven.
So if you were to Google all of that, you would see some pretty interesting work, from our point of view.
But it tends to be more driven by the viewer than it does by the category.
Okay.
Good ---+ sorry, is that it.
Okay, then thank you all for your questions.
And thanks to all the Colgate people around the world that deliver the results.
Thank you, everybody.
