MESSAGE TO SHAREHOLDERS
Dear Colgate Shareholders
We are pleased to share the progress of the Company in FY 2018-19.
Financial Results FY. 2018-19
We delivered a consistent revenue growth of 7% over the previous year with Net Sales*at र4432.4 crores for the year ended March 31 2019. The EBITDA margins were higher by100 bps and the reported Net Profit After Tax for the year was at र775.57 crores anincrease of 15% over the past year. Excluding the impact of Tax reversals and exceptionalitems the Net Profit After Tax for F.Y 2018-19 increased by 11% over the last financialyear.
In pursuance of our commitment to maximize shareholder value the Board declared aSpecial third interim dividend for the Financial Year 2018-19 of र8/- per share ofर1/- (face value).
The Total Dividend stands at र23/- per share for FY 2018-19.
We maintained our strong leadership positions in both the toothpaste and toothbrushcategories with volume market shares for the year 2018 at 52.4% and 45.2% respectively.
Colgate is India's No. 1 Most Trusted Oral Care Brand
For the eighth consecutive year Colgate ranked as India's #1 Most Trusted Oral CareBrand in The Economic Times Brand Equity Most Trusted Brands Survey-2018 a consumersurvey conducted in collaboration with Nielsen. We sincerely thank you for your trust.
Driving Growth is Our Key Priority
We work towards achieving a sustainable profitable business growth with brand buildingactivities and a sharp focus on innovation supported by a strong advertising investment.
To reinvigorate Colgate's flagship brand and India's largest selling toothpaste -Colgate Strong Teeth the brand was re-launched with a thought-provoking consumercommunication of 'Andar Se Strong' moment reflected as 'Bahar Se Smiles' The TVcommercials featured the real stories of India's popular icons Deepika Padukone andMahendra Singh Dhoni highlighting how they face life's tough moments with selfbelief anda smile.
Colgate Total got a brand refresh with an advanced formula of Dual Zinc and Arginine.It provides superior protection to problem causing germs. The brand proposition wascommunicated through a new campaign persuading people to 'Upgrade to Whole Mouth Health'
Continuing the momentum in our 'Naturals' segment a 360 marketing campaign forSwarna Vedshakti leveraged leading celebrities Kajol and Jyothika. Additionally throughstrong region-specific communication Vedshakti asserted its presence at major festivalsin India throughout the year. It is pertinent to mention that at Kumbh the world'slargest congregation of pilgrims our campaign 'Kumbh Se Sampoorna Shuddhi ColgateVedshakti Se Sampoorna Suraksha ensured the exposure of our brand to one in every fivevisitors through impactful outdoor advertising Kumbh related utility accessories likeSuraksha- wristbands and Suraksha-ropes and large-scale sampling with sachet packs.
Focusing on the children's portfolio we launched the new Colgate Kids Toothpasteintegrated marketing communication of 'Make brushing fun' leveraging the much-lovedpopular characters of Batman Barbie and Motu-Patlu. This new communication was amplifiedacross digital platforms in addition to in-store engagements and exciting promotions.
We recently introduced Colgate ProClinical 150 Toothbrush in the market. Thistechnology led innovation is a battery operated toothbrush that is tough on plaque yetgentle on gums.
We have expanded the Palmolive equity to a new category of Palmolive Facial Bars.Available in 3 exciting variants of Vitamin C&E Turmeric & Tamarind andCharcoal the facial cleansing bars were launched with a high impact campaign acrossmultiple consumer touch-points in digital and social channels in-stores and outdoors.
Bringing Alive Colgate's Brand Purpose
In line with our brand purpose - 'Everyone Deserves a Future They Can Smile About werecently launched Colgate's equity campaign - 'Smile Karo Aur Shuru Ho Jao' or Get Startedwith a Smile.
This brand expression underscores Colgate's message of hope and optimism through thepositive power of a smile. While embarking on life's significant new journeys when we feeloverwhelmed or unsure it is our smile that boosts our courage and nudges us to betterplaces.
The campaign was introduced through two new TV commercials on one of the biggestsporting events in India the IPL.
Stepping Up the Game
In order to enhance our equity with the 'Profession we continue to create relevantopportunities for scientific engagements. We recently organized a lecture series by DentalExperts on Product Technologies across 40 cities in India which was much appreciated bythe dentist community.
In e-commerce our focus on understanding shopper trends and catering to theirrequirements effectively has tripled our growth in the last year.
And in traditional trade platforms our successful implementation of Mission Vistaarhas led to a considerable increase in our direct distribution across the country.
Our Commitment to Social Action
Caring for the health and safety of our environment people and communities is anintegral part of Colgate. It gives me great pleasure to share with you that Colgate is thefirst Company in India to be recognized by the Green Business Certification Inc. (GBCI)with TRUE Zero Waste Platinum certification for all four of our manufacturing sites. Theprinciples of 'Reduce -Reuse- Recycle' have become a way of life for all of us at Colgate.
For over eighty years we have been committed to Keep India Smiling through severalcommunity programs that aim to create a significant positive impact in the lives ofpeople.
Our long running pan-India flagship program Bright Smiles Bright Futures(BSBF) which has been providing foundational oral health education since 1976 to schoolchildren across urban and rural India has reached over 162 million children so far.
Oral Health Month (OHM) an annual initiative that we started in 2004 to offer freedental consultation and check-ups to people across the country has benefitted about 40million people so far.
Seva Mandir an Udaipur based NGO partnered with Colgate in 2013. Together we havesupported the cause of education for underprivileged children from tribal areas ofRajasthan. As part of this association in 2016 we launched the 'Colgate Seva MandirEducation Scholarship Program' which supports children with overall grooming and qualityeducation at the Vidya Mandir school. Additionally Colgate also helps to enhance VidyaMandir's learning facilities and infrastructure.
Taking this partnership with Seva Mandir further recently we also started alivelihood-based women-empowerment program in nine tribal villages of Udaipur. For thebeneficiaries the income from this program is not only a means to build theirself-reliance but also to improve their quality of life and of those around them.
Saksham our employability-linked skill development program to empower theunderprivileged and marginalised youth has trained more than 900 candidates across thestates of Uttar Pradesh Bihar and West Bengal since 2016.
Colgate has partnered with NGO ActionAid to support children primarily girls frommarginalised communities in villages around Baddi in Himachal Pradesh. The program focuseson building their computer and language skills and helps with their personality grooming.More than 500 children have been enrolled in F.Y.2018-19 in mixed-model schools runtogether by the government and community.
'Save Water' is the cornerstone of Colgate's sustainability mission. We realise thatpeople in regions without water struggle with their basic daily existence. Through ourpartnership with NGO Water for People - India Trust water availability has been enabledin regions of Bihar West Bengal and most recently in Amravati district of Maharashtra.Additionally Colgate's water augmentation program with NGO Seva Mandir ensures wateraccessibility to tribal villages of Udaipur Rajasthan.
We will continue to grow and develop our community programs with the objective ofbuilding strong foundations to create a meaningful difference in people's lives.
We remain focused on maximizing growth and productivity. Guided by our ethics and corevalues of Caring Teamwork and Continuous Improvement we continue to draw upon ourfoundational strategies of investing in our brands and delivering innovative products.With our pragmatic and committed teams we are confident that we will continue to createvalue for our shareholders over the long-term.
I wish to thank all Colgate people for their unstinted efforts year on year towardsattaining our goals. I would also like to express my sincere appreciation for the trustand support that we receive from our customers suppliers shareholders and directorswhich enables us to continue striving to Keep India Smiling.
Colgate-Palmolive (India) Limited