Colgate’s net profit up 18% to Rs 71.9cr

Colgate-Palmolive (India) Limited today reported net sales of Rs. 407.6 Crore for the quarter ended June 30, 2008, a 16% increase over the same quarter of the previous year. Net profit for the quarter is Rs. 71.9 Crore, an increase of 18% over the same quarter of the previous year.

Driving Growth

The Company maintained its leadership position achieving a 11.5% volume increase over the same quarter of the previous year, led by a 10.9% growth in its core Toothpaste category. All major brands – “Colgate Dental Cream”, “Active Salt”, and “Cibaca” - continue to contribute to the strong volume growth.

The Company’s Toothbrush category witnessed a volume growth of 32% in the current quarter, increasing its market share to 37.2% for the Jan – May 2008 period.

In the quarter, the Company continued its progress in the Toothpowder category, increasing its market share to 45.9% for the Jan-May 2008 period.

During the quarter ended June 30, 2008, the Company continued to invest in its equity and brand building activities with the advertising and sales promotion expenditure at Rs. 69.3 Crore, an increase of 32% over the same quarter last year.

Funding Growth

The Company’s continuing efforts and focussed programs to enhance efficiencies and reduce costs continue to yield strong, positive results. The benefits and incentives available from higher production at the state-of-the-art Toothpaste plant at Baddi has been re-invested in building strong brand equity and contributed to the higher Earnings and Net Profit for the quarter, which increased by 18% to Rs. 5.29 Per Share and Rs. 71.9 Crore respectively.

Acquisitions

In April 2008, the Company acquired a 75% stake in C C Healthcare Pvt. Ltd., which has been manufacturing and supplying toothpowder to the Company for several years, for a purchase consideration of Rs. 1.9 Crore.

Colgate-Palmolive (India) Limited is India’s leading provider of scientifically proven oral care products with multiple benefits at various price points. The range includes toothpastes, toothpowder and toothbrushes under the “Colgate” brand, as well as a specialised range of dental therapies under the banner of Colgate Oral Pharmaceuticals. These have become an essential part of daily oral hygiene and therapeutic oral care in India. The Company also provides a range of personal care products under the ‘Palmolive’ brand name. Colgate was ranked as India’s Most Trusted Brand across all categories for four consecutive years in 2003 to 2006 by Brand Equity’s Most Trusted Brand Survey. Prior to this, Colgate was also rated as the #1 brand by the A&M – MODE Annual Survey for India’s Top Brands for eight out of nine years during the period 1992 to 2001. In Brand Equity’s 2007 Most Trusted Brand Survey, Colgate was rated the leading FMCG Brand.

Sourced From: R&PM:Edelman