Colgate-Palmolive India net profit drops 7.2% in April-June quarter
Colgate Palmolive India saw its net profit decline by 7.2% year-on-year to Rs 216.6 crore (excluding the impact of the one-off item) in the April-June quarter and revenue up by 2.5% to Rs 1186.59 crore from last year.
The company’s PBIDT stood at Rs 327.9 crore in the quarter ended June, down 9% from a year ago.
The toothpaste giant witnessed the impact of the global rural downturn and inflationary pressure during the quarter, but the company remains cautiously optimistic that trends will improve in coming quarters, said Mukul Deoras, chairman. of Colgate Palmolive India, in the company’s earnings release.
“Our global pricing strategy and strong financing of growth programs have generated consistent margins as we continue to maintain our strong investment in innovation and brand building activities,” said Deoras.
Phillip Capital said in its company report that it had all the ingredients of “Essentials Play” in its favour; however, heightened competitive intensity and slowing category growth are key challenges that management must address for a meaningful recovery.
The brokerage firm also said GSK Consumer’s recent integration with HUL (provides access to GSK’s premium toothpaste brands in the drugstore channel), will make Colgate’s premiumization journey even more difficult and improve opportunities for cross-selling for HUL.