Business Standard

Colgate FY07 net profit up 26%

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Announcement Mumbai
4Q 2006-07 NET SALES UP 14%, NET PROFIT UP 37%
 
 
ANNOUNCES A SPECIAL DIVIDEND OF 20%, INCREASES 2006-07 DIVIDIEND TO 95%
 
 
Colgate-Palmolive (India) Limited today reported net sales of Rs. 1,295.1 Crores for the year ended March 31, 2007, a 15% increase over the previous year. For the year, the Company achieved a net profit of Rs. 160.2 Crores, an increase of 16% over the prior year. The reported net profit of Rs. 160.2 Crores for the year is after absorbing a charge of Rs. 58.0 Crores pre-tax (Rs.38.5 Crores net of tax) for a Voluntary Retirement Scheme (VRS) implemented in September 2006 at it's Sewree manufacturing facility. Excluding the VRS charge & certain credits, the net profit after tax from operations for the year is Rs. 185.3 Crores, a 26% increase over the previous year.
 
 
For the fourth quarter ended March 31, 2007, the Company reported net sales of Rs. 343.3 Crores, an increase of 14% over the same quarter of the previous year. The reported net profit for the quarter at Rs. 50.6 Crores is 37% higher than the net profit for the same quarter of the previous year.
 
 
DRIVING GROWTH
 
 
During the year the Company recorded a 10% unit volume growth with its core toothpaste category growing by 9% during the year and 8% in the quarter. Growth in the toothpaste category was led by the flagship brand "Colgate Dental Cream", "Colgate MaxFresh Gel" -- launched in the 4Q of 2006-07 and the Company's low price offering "Colgate Cibaca Top".
 
 
The Toothbrush category also continued its strong growth momentum with volume growing 22% for the year and 20% in the quarter. Toothpowder volumes registered a 5% growth for the year and 9% for the quarter.
 
 
The liquid body wash category comprising Shower Gels, Shower Crème and Liquid Hand Wash grew by 46% during the year, driven entirely by unit volume.
 
 
FUNDING GROWTH
 
 
The Company's continuing efforts and focussed programs to enhance efficiencies and reduce costs continue to yield strong and positive results. The state-of-the-art toothpaste plant at Baddi successfully increased its output by 62% over the previous year and savings generated by this and other initiatives have been reinvested in building strong brands.
 
 
Excluding the VRS charge & certain credits, the operating profit (EBITDA) for the year has grown by 16% to Rs. 202.1 Crores and EBIT for the year has grown by 17% to Rs. 186.8 Crores.
 
 
DIVIDEND
 
 
Calendar year 2007 marks the 70th year of operations for the Company and to commemorate the event, the Board of Directors have recommended a special dividend of 20% i.e. Rs. 2.00/Share. The dividend is subject to the shareholders approval at the Annual General Meeting to be held July 27, 2007 and is in addition to the two interim dividends aggregating to 75% i.e. Rs. 7.50/Share already paid by the Company. Subject to approval by the shareholders, the total dividend for the year has been increased to 95% i.e. Rs. 9.50/Share, the 4th successive increase in the past 4 years.
 
 
During the year 2005-06, the Company had paid a total dividend of 75% i.e. Rs. 7.50/Share.
 
 

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First Published: May 03 2007 | 12:00 AM IST

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