The company's focus on driving premiumisation in oral care and building the personal care portfolio could drive long-term performance, says the brokerage
FMCG major Colgate-Palmolive India Ltd on Thursday reported an increase of 16.17 per cent in its net profit at Rs 395.05 crore in the quarter ended September 2024, led by a broad-based growth across portfolios. The oral hygiene product maker had posted a net profit of Rs 340.05 crore in the July-September quarter a year ago, according to a regulatory filing by Colgate-Palmolive India Ltd (CPIL). Its sales were up 10.04 per cent to Rs 1,609.21 crore during the quarter under review. It was at Rs 1,462.38 crore in the corresponding period a year ago. Total expenses of CPIL in the latest September quarter were up 13.6 per cent year on year to Rs 1,695.09 crore. The company's total income, including other income, was Rs 1,164.64 crore, up 12.60 per cent annually. The profit growth of 16 per cent in Q2 FY25 also "includes one-off credit related to interest on income tax refunds received during the quarter", said CPIL in its earnings statement "Advertising spend increased by 17.8 per ce
According to Nielsen, the consumer sector grew 4% Y-o-Y in Q1FY25, down from 6.6% in Q4FY24. Pricing saw a marginal increase of approximately 0.2 per cent, while volumes rose 3.8% Y-o-Y.
Fast-moving consumer goods companies have increased prices by 2% to 9% on soaps and body washes, 8% to 11% on hair oils, and 3% to 17% on select food items
During the quarter, the company also invested in advertising and saw its ad spends increase by 18 per cent to Rs 168.9 crore in the quarter
The stock has risen by around 36 per cent in the last six months
Colgate Palmolive India is also looking at acquisitions in the personal care segment and is looking at not only direct-to-consumer companies but also legacy companies to acquire
Patanjali is strengthening its distribution system by expanding it from the current one million outlets to about 1.5 million outlets
The country's largest listed oral care company posted a gross margin expansion of 100 basis points (bps) on a sequential basis to 66.9 per cent, led by pricing and efficient sourcing
A lot hinges on its ability to boost volumes amid stiff competition
Management optimistic about growth as stock valuation stays unchanged for India's largest oral care company
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Singh has worked at Coca-Cola for about two decades at several senior leadership positions and concluded his journey there as chairman, Asia Pacific and spearheaded its businesses across 25 countries
The court has set aside the order since the deputy commissioner of state tax did not provide any reasons while rejecting the order.
FMCG distributors suspended their boycott of Colgate after talks with the company over the issue of the price disparity between the traditional distributors and organised business-to-business channel
Colgate India's meeting with distributors comes after the traditional channel stopped supplying its Colgate MaxFresh range of products in Maharashtra
Last week, a group of distributors said they will stop some Colgate products from Jan. 1 in western Maharashtra state, the richest and one of the most populous in India
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Distributors in state to stop supplying Colgate products in phases from January 1
Focus on modern trade and market share gains has led brokerages to hike their target price estimate for the stock