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Informist, Tuesday, Jul. 22, 2025

 

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--Colgate Apr-Jun net profit INR 3.21 bln 
--Analysts saw Colgate Apr-Jun net profit at INR 3.45 bln 
--Colgate Apr-Jun net profit INR 3.21 bln vs INR 3.64 bln year ago 
--Colgate Apr-Jun revenue INR 14.34 bln vs INR 14.97 bln year ago 
--Colgate Apr-Jun cost of materials INR 3.46 bln vs INR 4.02 bln year ago 
--Colgate Apr-Jun advertising expense INR 1.88 bln vs INR 1.99 bln year ago 
--Colgate: Saw tough operating conditions in Q1 due to subdued urban demand 
--Colgate: Saw tough operating conditions in Q1 due to higher competition 
--Colgate: Apr-Jun performance hit by high base in year-ago quarter 
--Colgate: Premium portfolio delivered strong revenue growth in Apr-Jun

  

By Simran Rede

 

MUMBAI – Colgate-Palmolive (India) Ltd. reported a subdued performance for the June quarter due to weak urban demand and higher competition. The company posted a 12% on-year decline in its bottom line, the steepest fall since the December quarter of 2016. Its top line fell 4.2% on year, the highest fall in 21 quarters. The company's revenue contracted for the second quarter in a row after rising for 18 straight quarters.

 

The fast-moving consumer goods company posted a 14% on-year decline in its cost of materials consumed for the quarter, which stood at INR 3.46 billion. This was the highest contributor to the company's expenditure. Advertising costs, the primary expense for Colgate, fell over 5% on year to INR 1.88 billion. 

 

Colgate's net profit fell to INR 3.21 billion in the June quarter, lower than the Street's expectation of INR 3.45 billion, according to the average of estimates from 13 brokerages. On a sequential basis, it fell nearly 10%, more than the expectation of a near 3?cline. The revenue fell to INR 14.34 billion, below analysts' estimate of INR 14.75 billion. Revenue dropped 2% on quarter, against the expectation of nearly 1% growth.

 

The company received a deferred tax credit of INR 32.20 million, lower than the INR 41.80 million of credit received in the year-ago quarter. Its tax expense fell just over 11% on year to INR 1.11 billion. Total expenses of the company fell over 1% on year to INR 10.20 billion. Finance costs rose 4% on year to INR 10.20 million but fell nearly 6% on quarter. The company reported changes in inventories of INR 598.80 million compared to an inventory gain of INR 205.60 million in the year-ago quarter.

 

The weak performance in the June quarter reflected continued challenges from tough operating conditions due to subdued urban demand and rising competition. The weak results for the quarter were also due to a high base from a year ago, the company said in a press release.  

 

"Net sales grew at 12?GR (compounded annual growth rate) in the base year same period (Q1 FY23-Q1 FY25)," Prabha Narasimhan, managing director and chief executive officer of the company, said in the press release. The company delivered strong revenue growth in its premium portfolio in the reporting quarter. 

 

The FMCG major is prioritising brand investment by using its healthy profit margins, and anticipates a gradual recovery in Oct-Mar. The company has launched two new formats under its Kids and Mouthwash portfolios--Colgate Kids Squeezy Toothpaste and MaxFresh Mouthwash Sachet Stick, it said in the press release.  

 

After the company released its earnings for the quarter on Tuesday, its shares fell more but reversed losses and rose sharply later. The stock touched an intraday high of INR 2,410 but again came off highs and, at 1415 IST, was at INR 2,390.90 on the National Stock Exchange, down 0.1%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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