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Informist, Tuesday, Jan. 28, 2025

 

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--Colgate Palmolive Oct-Dec net profit INR 3.23 bln 
--Analysts saw Colgate Palmolive Oct-Dec net profit INR 3.33 bln 
--Colgate Palmolive Oct-Dec PAT INR 3.23 bln vs INR 3.30 bln yr ago 
--Colgate Palmolive Oct-Dec revenue INR 14.62 bln vs INR 13.96 bln year ago 
--Colgate Palmolive Apr-Dec net profit INR 10.82 bln vs INR 9.44 bln yr ago 
--Colgate Palmolive Apr-Dec revenue INR 45.78 bln vs INR 41.90 bln year ago 
--Colgate Palmolive Oct-Dec cost of materials INR 3.45 bln vs INR 3.34 bln 
--Colgate Palmolive Oct-Dec advertising expense INR 2.00 bln vs INR 2.04 bln 
--Colgate Palmolive: Oct-Dec saw soft demand, particularly in urban market 
--Colgate Palmolive: Oct-Dec toothpaste volume grew in mid-single digit 
--Colgate Palmolive: Continue to see positive momentum in premium portfolio 
--Colgate Palmolive: Near-term macro environ continues to look challenging
 

 

By Arya S. Biju and Steffy Maria Paul

 

MUMBAI – Colgate Palmolive (India) Ltd. reported weak earnings for the December quarter due to a slowdown in demand in the urban market. The dental care major reported lower-than-expected earnings with both the top line and bottom line missing the street's estimate. The company reported a low-single digit fall in net profit for the quarter, breaking six consecutive quarters of on-year growth in net profit.

 

The company reported a net profit of INR 3.23 billion for the quarter, down 2.2% on year and slightly below analysts' estimate of INR 3.33 

billion. The company's revenue for the quarter rose 4.8% on year to INR 14.52 billion, lower than analysts' estimate of INR 14.88 billion. This marked the 18th consecutive quarter of on-year growth in revenue for the company. However, on a sequential basis, Colgate India's net profit fell 18.3% while its revenue was down 9.8%.

 

For the nine months ended December, the company reported a net profit of INR 10.82 billion, up 14.6% on year. The company's net sales for the same period were INR 45.47 billion, up 9.2% on year.

 

The company's other income for the quarter rose 14% on year to INR 204 million. For the nine months to December, the other income more than doubled on year to INR 1.20 billion. This included INR 609 million credit received on account of interest on income tax refunds. Total expenditure rose 8.2% on year to INR 10.50 billion for the quarter, but was down around 10% sequentially. The company's raw material costs rose 3.3% on year but fell 22.5% sequentially to INR 3.45 billion. The purchases of stock-in-trade rose 55% on year to INR 986.3 million. The company's advertising expense for the quarter fell 2% on year and 17.5% sequentially to INR 2 billion.

The company reported earnings before interest, tax, depreciation, and amortisation margin of 31.3% for the quarter. The company's domestic operations grew by 3.2% during the quarter, Colgate India said.

 

Despite soft demand in the urban market and increased competition, the company "...delivered a resilient performance this quarter," with toothpaste reporting a mid-single digit volume growth, Prabha Narasimhan, managing director and chief executive officer of the company, said in a press release. While the company continues to see positive momentum in its premium portfolio, the near-term macro environment continues to look challenging, she added. On Tuesday, shares of the company closed at INR 2,679.40 on the National Stock Exchange, down 1.1%.  End 

 

Edited by Ashish Shirke

 

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