Colgate Palmolive (India) has dipped 4% to Rs 1,228 on BSE after reporting 24.5% year on year (yoy) decline in net profit at Rs 110 crore for the quarter ended September 2013 (Q2) due to higher advertising expenses. The personal products maker had profit of Rs 145 crore in a year ago quarter. Net sales grew 15.9% yoy at Rs 896 crore.
EBITDA or operating profit margin however, contracted by 641 bps at 15.8% on yoy basis, impacted by higher advertising expenses and other expenses.
The company’s advertising expenses during the reporting quarter has increased by 34% at Rs 119 crore, while other expenditure by 46% at Rs 219 crore over the previous year quarter, Colgate Palmolive said in a statement.
The higher advertising expenses is attributed to the increased competition in the tooth paste segment post the entry of P&G into the segment through the launch of Oral-B pro-health brand, says analyst at Angel Broking in a note.
The stock opened at Rs 1,247 and hit a low of Rs 1,219 so far. A combined around 105,000 shares have changed hands on the counter till 0930 hours on NSE and BSE.
EBITDA or operating profit margin however, contracted by 641 bps at 15.8% on yoy basis, impacted by higher advertising expenses and other expenses.
The company’s advertising expenses during the reporting quarter has increased by 34% at Rs 119 crore, while other expenditure by 46% at Rs 219 crore over the previous year quarter, Colgate Palmolive said in a statement.
The higher advertising expenses is attributed to the increased competition in the tooth paste segment post the entry of P&G into the segment through the launch of Oral-B pro-health brand, says analyst at Angel Broking in a note.
The stock opened at Rs 1,247 and hit a low of Rs 1,219 so far. A combined around 105,000 shares have changed hands on the counter till 0930 hours on NSE and BSE.
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