Colgate Palmolive India Q1 results: Net profit down 11.9% as sales drop

Colgate Palmolive India's Q1 net profit fell 11.9%, with revenue dropping 4.2%, driven by weak urban demand and heightened competition

Colgate Palmolive India saw its net profit drop 11.9 per cent in the quarter ended June, on the back of weak urban demand, a high base, and elevated competitive intensity.

 

The oral care major saw its revenue fall to Rs 1,434.1 crore, down 4.2 per cent compared to the same period last year, with its net profit standing at Rs 320.6 crore.

 

Its profit before interest, depreciation, and taxation (PBDIT) was down 11.5 per cent at Rs 470.5 crore in the April-June quarter. 

 

 

In its earnings release, Prabha Narasimhan, Managing Director & Chief Executive Officer of Colgate-Palmolive (India), said, “Our Q1 results reflect persistent headwinds from tough operating conditions on account of subdued urban demand and elevated competition intensity. The current quarter's performance is also influenced by cycling a high base from the previous year; net sales grew at a 12 per cent compound annual growth rate (CAGR) in the base year same period (Q1 FY23-Q1 FY25).”

 

She also mentioned that the company continued to work towards executing its strategic priorities. “We have made good strides in category premiumisation, with our premium portfolio delivering strong revenue growth. We also prioritised brand investment, leveraging our healthy profit margins. We expect to navigate the current challenges and anticipate a gradual recovery in the back half of the year,” she added.