Colgate-Palmolive's June quarter net at Rs 122 crore

Driven by sales in the core toothpaste category, Colgate, the oral care major, registered a 19 per cent increase in net profit for the quarter ended June 30. Net profit was Rs 122 crore against Rs 102.8 crore last year. Net sales increased 13 per cent during the quarter to touch Rs 528.8 crore, as against Rs 468 crore last year.

Colgate enhanced its leadership position in toothpastes, with a volume share of 53.3 per cent during January-May as against 51.7 per cent during the same period last year. Key contributors included flagship Colgate Dental Cream, Active Salt and Cibaca, beside newer products such as Colgate Sensitive, the company said. Volume market share in toothbrushes were also up, moving from 38 per cent last year to 41.2 per cent this year. Colgate's volume market share in toothpowder, however, was down from 49 per cent last year to 48.4 per cent this year. Colgate managed to expand gross margins in the first quarter on the back of a 58 per cent decline in purchase of traded goods. It was down to Rs 45 crore this quarter from Rs 106.5 crore last year. "But a 31 per cent increase in miscellaneous expenditure, coupled with a 19 per cent increase in advertising expenditure for the quarter, curtailed further expansion," said Anand Shah, senior FMCG analyst at brokerage Angel Securities.