Colgate-Palmolive June quarter PAT up 18% to Rs 233 cr, sales up 12%

Personal-care products major Colgate-Palmolive India reported a 17.7 per cent year-on-year jump in its profit after tax (PAT) for the April-June quarter. The Mumbai-based firm’s PAT stood at Rs 233.2 crore, up from Rs 198.2 crore during the corresponding quarter previous year.

Its net sales grew 12 per cent to Rs 1,158 crore from Rs 1,033.6 crore last year. Colgate’s sales and net profit remained 1.8 per cent and 1.9 per cent below street estimates.

During the quarter, the company's cost of material consumed rose 28.3 per cent but favourable adjustments in changes in inventories of finished goods, work-in-progress and stock-in-trade, helped it keep expenses in check. As a result, its earnings before interest, tax, depreciation and amortization (EBITDA) increased 15 per cent YoY to Rs 350 crore.

Gross margin expanded by 301 bps and 148 bps over previous quarter, reflecting the price hikes taken during April-June.

“Despite the challenging external circumstances we are pleased with our sustained growth momentum across all categories. Our disciplined approach to execute against our strategic initiatives was a key driver to deliver strong results,” said Ram Raghavan, managing director at Colgate-Palmolive India.

According to him, the firm amplified consumer engagement and brought “exciting approaches to its communications and brand building efforts”. Spends on advertisement and promotional front went up 40.6 per cent YoY and 7.6 per cent q-o-q to Rs 160.2 crore.