Colgate-Palmolive (India) today reported a 43 per cent decline in net profit for the quarter ended December 31 at Rs 66.2 crore against Rs 116.4 crore in the previous corresponding quarter.
Net sales were up 12.86 per cent at Rs 576.6 crore, against Rs 511 crore in the year-ago quarter.
“During the quarter, the company continued to invest in its brand and equity-building activities, with advertising and sales promotion expenditure at Rs 120.59 crore as against Rs 75.28 crore reported last year. This additional investment, coupled with the lower deduction under the Income Tax Act on the profits of the Baddi manufacturing facility, has resulted in lower net profit and earnings per share for the quarter,” the company said.
The company registered 12 per cent growth in sales volumes during the quarter.