Colgate’s Q1 FY25 Results Show 33% Increase in Net Profit

Colgate-Palmolive (India) Limited is a subsidiary of Colgate-Palmolive Company, an American multinational consumer products company headquartered in the USA. The company is India’s leading provider of scientifically proven oral care products. The range includes toothpastes, toothpowder, toothbrushes, and mouthwashes under the Colgate brand, as well as a specialized range of dental therapies under the banner of Colgate Oral Pharmaceuticals.  Colgate-Palmolive (India) Limited has been a trusted name in the Indian market for decades, known for its high-quality products that cater to the diverse oral care needs of consumers. The company’s commitment to innovation and research has led to the development of advanced formulas that are not only effective but also safe for daily use.  With a strong distribution network and widespread availability across the country, Colgate-Palmolive (India) Limited has been able to reach millions of households, making oral care accessible to all. The company’s focus on education and awareness campaigns has also helped in promoting good oral hygiene practices among consumers, contributing to overall public health.  The company is involved in the manufacturing and trading of toothpaste, tooth powder, toothbrushes, mouthwash, and personal care products. It also offers a variety of personal care products under the Palmolive brand name. Colgate-Palmolive (India) Limited was established on September 23, 1937. In 1983, the company launched its successful product, the Colgate Plus toothbrush, on the market. In 1988, CPIL obtained a license to produce 24,000 metric tons per year of fatty acids.

Colgate-Palmolive (India) Limited Q1 FY25 result:

FMCG major Colgate-Palmolive India reported on Monday a 33% increase in net profit at Rs 363.98 crore for the first quarter ended June 2024, supported by a rise in demand and strong product performance.  The oral hygiene product manufacturer recorded a net profit of Rs. 273.68 crore in April–June FY24, as per a regulatory filing from Colgate-Palmolive India Ltd. (CPIL).  Sales increased by 13% to Rs. 1,485.76 crore during the quarter under review, compared to Rs. 1,314.73 crore in the same period last year.

The quarter witnessed continued demand pickup in rural markets and faster-paced growth in urban markets for the second quarter in a row. Led by this and the good all-round performance of toothpaste, toothbrushes, and personal care, domestic revenues grew by 12.8% year-on-year (YoY) for the quarter, said CPIL in its earnings statement.

EBITDA margins remained consistent despite the increased investment in advertising, which rose by 10% year-on-year.  Total expenses in the June quarter increased by 8.46% to Rs 1,030.86 crore.  Total income, including other income, reached Rs 1,520.11 crore, showing a 13.55% increase.

Prabha Narasimhan’s growth statement:

According to MD & CEO Prabha Narasimhan of CPIL, the toothpaste portfolio has seen double-digit growth due to a growth in volumes of 5%. Our continued investments in perceivable superiority in products, brand building and innovation are yielding significant results while strengthening our brand metrics to the highest ever levels. The toothbrush portfolio of CPIL has also seen a positive shift in its competitive growth trajectory, with strong double-digit growth at the top.

Colgate-Palmolive (India) Limited stock rose 6% today:

Due to excellent Q1 FY25 results, CPIL stock is up by 6% in intraday trading today, currently trading at Rs. 3,399.55 per share and experiencing high trading volume at Rs. 3,413.75.

Conclusion: Colgate-Palmolive (India) Limited is seeing a rise in demand from rural regions relative to urban areas, a sign that the company is becoming more and more well-liked in rural India. Because they are constantly innovating, their growth is not stagnant.

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