Earnings Review
Colgate PAT, revenue fall on low demand, high competition
This story was originally published at 19:01 IST on 21 May 2025
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--Colgate Jan-Mar net profit INR 3.55 bln
--Analysts saw Colgate Jan-Mar net profit INR 3.53 bln
--Colgate Jan-Mar PAT INR 3.55 bln vs INR 3.80 bln year ago
--Colgate Jan-Mar revenue INR 14.63 bln vs INR 14.90 bln year ago
--Colgate to pay INR 27 per share interim dividend
--Colgate FY25 net profit INR 14.37 bln vs INR 13.24 bln year ago
--Colgate FY25 revenue INR 60.40 bln vs INR 56.80 bln year ago
--Colgate Jan-Mar cost of materials INR 3.86 bln vs INR 3.88 bln
--Colgate Jan-Mar advertising expense INR 1.81 bln vs INR 1.69 bln
--Colgate:See macro headwinds continue, gradual recovery in latter part of yr
By Pallavi Singhal
By Pallavi Singhal
NEW DELHI – Colgate-Palmolive (India) Ltd. reported subdued performance for the March quarter owing to softer urban demand and intensified competition. Its toothbrush portfolio delivered another year of robust growth, the company said, adding its margin profile remained healthy and resilient.
The company reported a net profit of INR 3.55 billion for the quarter, down 6.5% on year but slightly over analysts' estimate of INR 3.53 billion. The company's revenue for the quarter fell almost 2% on year to INR 14.63 billion, lower than analysts' estimate of INR 15.1 billion. Colgate's revenue fell on year for the first time in 19 quarters.
On a sequential basis, however, Colgate India's net profit rose almost 10% while its revenue was on a par with the previous quarter. For the financial year ended March, the company reported a net profit of INR 14.37 billion, up 8.6% on year. The company's net sales for the same period were INR 60 billion, up 6.3% on year.
The company's other income for the quarter fell 16% on year to INR 191 million. For the financial year 2024-25 (Apr-Mar), the other income almost doubled on year to INR 1.4 billion.
Total expenditure rose marginally to INR 10 billion for the quarter but was down around 4% sequentially. The company's raw material costs fell marginally on year but rose 12% sequentially to INR 4 billion. The purchases of stock-in-trade rose 25% on year to INR 653 million. The company's advertising expense for the quarter rose 7% on year but fell 10% sequentially to INR 1.8 billion. Colgate will pay an interim dividend of INR 27 per share.
Despite soft demand in the urban market and increased competition, the company "...remained steadfast in our commitment to our strategic priorities... and delivered another year of robust growth," 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. The company continues to capitalise on its solid margins by reinvesting in the business, she said. According to her, the near-term macro headwinds are anticipated but "we expect to see a gradual recovery in market conditions in the latter part of the year." On Wednesday, shares of the company closed at INR 2,659.30 on the National Stock Exchange, up 1.1%. End
Edited by Akul Nishant Akhoury
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