Colgate Palmolive Q1 Results: Profit Rises 31%, Beats Estimates
Net profit of the toothpaste-maker rose 31% over the previous year to Rs 273.7 crore in the quarter ended June.
Colgate-Palmolive India Ltd.’s quarterly profit rose, exceeding analysts' estimates.
Net profit of the toothpaste maker increased 31% over the previous year to Rs 273.7 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 250.5 crore consensus estimate of analysts tracked by Bloomberg. Sequentially, however, profit fell 6%.
An exceptional item for the quarter includes severance and related expenses with respect to certain organisational structure changes of Rs 19.5 crore.
Excluding the impact of exceptional items, the net profit grew by 33%.
Colgate Palmolive Ltd. Q1 FY24 Highlights (YoY)
Revenue grew 11% to Rs 1,323.67 crore vs. Rs 1,196.81 crore, as against a Bloomberg estimate of Rs 1,266.71 crore.
Ebitda rose 28% to Rs 418.12 crore vs. Rs 325.67 crore, as compared with an estimate of Rs 367.32 crore.
Margin expanded to 31.6% as against 27.2%. Analysts had forecast it at 29%.
Cost of materials consumed rose 2.73% to Rs 365.58 crore.
Total expenses increased 4% to Rs 950.38 crore.
The quarter saw "strong" sales growth and improvement across profitability ratios, said Prabha Narasimhan, managing director and chief executive officer at Colgate-Palmolive (India) Pvt. "This has been driven by good execution against our strategy focused on growing the oral care category."
Domestic sales grew at 12.3% as compared with the same quarter last year, while sales of toothpaste recorded "high double-digit" growth, according to the company.
"We are also seeing early signs of recovery in rural markets and remain optimistic about continued improvement," Narasimhan said.
Shares of Colgate Palmolive closed 1.08% lower on Wednesday as against a 0.5% gain in the benchmark Nifty 50. The results were declared after market hours.
