Colgate Q4 net rises by 10%

CORPORATE SCORECARD

Its net sales for the quarter grew 14 per cent to Rs 391.33 crore. The company's toothpaste category grew by 10 per cent in volume and toothbrush by 20 per cent this quarter. Its market share has remained almost constant at 37.2 per cent in toothbrushes and 41.2 in toothpastes. Anand Shah, research analyst, Angel Broking, said: "Its operational margins shrunk due to an increase in other expenditure undisclosed by the company. The company has strong brands and hence its performance in the coming quarters is expected to remain good.

Price hikes will ensure higher margins ahead. We expect its earnings to grow by 20 per cent and topline by 14 per cent." The company has been spending heavily on brand building in the last few quarters. its advertising and sales promotion expenditure grew by 24 per cent this quarter to Rs 256.5 crore.

The company's net profit for the year ended March 31, 2008, posted a jump of 44.6 per cent to Rs 231.7 crore due to reduction in employee costs this year.