Colgate-Palmolive Net Profit Declines 11% In June Quarter

Fast moving consumer goods (FMCG) major Colgate-Palmolive on Thursday said that its net profit in the April-June period declined 10.76 per cent to Rs 169.11 crore from Rs 189.51 crore during the same quarter last year. Despite, the decline in net profit, Colgate-Palmolive's sales in the June quarter rose 4 per cent on a year-on-year to Rs 1,075.99 crore from Rs 1,033.55 crore.

Colgate-Palmolive's earnings before interest, tax, depreciation and amortization (EBITDA) also known as operating profit in the April-June quarter came in at Rs 291 crore, up 6.2 per cent from Rs 274 crore annually. The Mumbai-based oral care product maker's EBIITDA margin or operating profit margin advanced 50 basis points to 27 per cent from 26.50 per cent in the same quarter last year.

lssam Bachaalani, managing director at Colgate-Palmolive (India) said, "The current quarter saw a moderation in demand impacted by lower than expected growth in the rural markets. We do consider this trend to be temporary and expect a pickup over the coming quarters. Despite the moderation, we continue to remain focussed on strengthening the core of our business and investing in our advertising and brand building activities."

"Under our Keep India Smiling mission to continue to impacting a positive change in people's lives, we recently launched Colgate's Keep India Smiling Foundational Scholarship. The Scholarship program in partnership with Shiksha Daan Foundation, offers financial support and mentorship to people across India in fields of education, sports and community betterment, to help them translate their dreams into reality. We continue to strive to build a future that everyone can smile about," Mr Bachaalani added.

During the quarter Colgate-Palmolive launched Colgate Strong Teeth, Colgate Zig Zag Neem and Colgate Super Flexi Viraat Pack, the company said in a news release.

Colgate-Palmolive shares rose as much 4.55 per cent to Rs 1,220.90 after it reported June quarter earnings, outperforming the Sensex which was down 0.44 per cent.