Colgate Palmolive's Q1 net profit at Rs 136 crore; toothpaste volume market share at 54.3%
Colgate reported net profit of Rs 136.38 crore, rising by 8.93% compared to Rs 125.19 crore in the corresponding period of the previous year.
- Colgate net profit at Rs 136.38 crore in Q1 up 9%
- Total income down by 3% in Q1
- Toothpaste and toothbrush market share at 54% and 45% respectively
Colgate Palmolive witnessed nearly 9% year-on-year rise in its net profit for the financial quarter ended June 30, 2017 (Q1FY18).
The company reported net profit of Rs 136.38 crore, rising by 8.93% compared to Rs 125.19 crore in the corresponding period of the previous year.
However, Q1 net profit was an decreases by 4.34% from Rs 142.58 crore of the preceding quarter.
A Bloomberg poll estimated the company's net profit to be at Rs 128 crore this quarter.
Revenue from operations stood at Rs 1,109.88 crore, registering decline of 2.77% year-on-year (YoY) and 5.28% quarter-on-quarter (QoQ) basis.
Issam Bachaalani, Managing Director at Colagate-Palmolive (India) said, "In the run up to the implementation of GST, we did expect many challenges including an impact on trade pipeline inventory.''
He added, "Colgate has been long preparing for this and in anticipation took necessary steps to minimize business disruption. We are pleased to inform that the required changeover in our system and processes has been smoothly accomplished."
EBITDA margin saw expansion of 50 basis points and EBITDA (operating profit) increased by 150 basis points.
GST has enabled the company to pass on the benefits to customers leading to reduction in MRPs by 8% to 9% four our key categories of toothpaste and toothbrushes.
Both toothpaste and toothbrush categories had a volume market shares at 54.3% and 45% respectively in Q1FY18.
For outlook ahead, Bachaalani said, "We continue to focus on our priorities of strengthening the core of our business and during competitive and profitable growth while staying committed to our values and sustainability initiatives."