Colgate Q1 Results Review- Volumes Come Good In Strong All-Round Delivery; Margins Still Have Legs: Systematix

Systematix Research Report

Colgate-Palmolive India Ltd. delivered a strong beat on Q1 FY25 results versus our/consensus expectations, reporting revenue/Ebitda/profit after tax growth of 13%/22%/24% YoY. The strong revenue delivery (on a high base of +11% YoY) was led by volume growth in high-single digits (our estimate +7% YoY) in the toothpaste segment, which came despite taking price increases, underscoring high pricing power.

Management called out sustained demand pickup in rural markets which outpaced urban growth for a second straight quarter. After several quarters of low growth, Colgate’s volumes are finally responding to the company’s initiatives in-

1. category development,

2. driving higher product usage (with consumers in ~55% of rural households not brushing daily, and only ~20% in urban households brushing twice a day), and

3. product innovations and re-launches to maintain relevance across needs.

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