Colgate-Palmolive (India) Ltd share Price

Colgate-Palmolive (India) (CPIL) is the largest oral care company in India. The company has more than 50% market share in the toothpaste category. The major brands include Colgate Dental Cream, Colgate Total, Colgate Max-Fresh. With the changing consumer preference for naturals products, the company is focusing on growing Colgate Vedshakti brand. Recently, it has launched a toothpaste for diabetics, Colgate Vedshakti Oil Pulling & Vedshakti mouth spray.

• Colgate has distribution reach of 6.5 million outlets. The company commands one of the highest gross margins in the industry and spends ~13% of sales on marketing to support existing brands and new launches

Colgate reported muted results with 1.4% sales growth.

• Sales were up 1.4% YoY, led by mid-single digit pricing growth
• EBITDA was at Rs 429.4 crore, up 1.8% YoY, with margins at 29.7%
• Consequent PAT was at Rs 323.6 crore (up 2.8% YoY)

Personal products company Colgate-Palmolive (India) announced Q1FY24 results:

• Net sales growth of 10.8% over Q1FY23 aggregating to Rs 1,314.7 crore for Q1FY24.
• Net profit after tax for Q1FY24 was Rs 273.7 crore, a growth of 30.5% as against the Net Profit of Rs 209.7 crore for Q1FY23.
• Excluding the impact of exceptional items, the net profit growth reported was 33%.

Prabha Narasimhan, Managing Director & CEO of Colgate-Palmolive (India), said, “We are pleased with the results for the quarter that saw strong quarter-on-quarter sales growth and improvement across profitability ratios. This has been driven by good execution against our strategy focussed on growing the oral care category. While domestic sales grew at 12.3% compared to the same quarter of last year, toothpaste sales recorded a high double digits growth. We are also seeing early signs of recovery in rural markets and remain optimistic about continued improvement.

In pursuit of our commitment to improving oral health in India and growing the Oral Care category, we continue to deliver superior products to the markets. In line with this commitment, our flagship brand Colgate Strong Teeth was re-launched with an improved formula and new communication. The product is fortified with the best in class technology in cavity protection (Arginine) and the campaign amplifies the product benefit which talks of Tooth Nourishment giving 2X stronger teeth, received a heartening response. In this quarter we also launched Colgate India’s first ever Whitening pen with our Dentist partners - this pen is a revolutionary new at-home whitening system.”

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