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Colgate-Palmolive Q1 numbers beat estimates, net profit up 17.2%

Overall volumes declined 7 percent versus estimates of a 10-11 percent decline.

July 29, 2020 / 07:17 PM IST
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FMCG major Colgate-Palmolive (India) on July 29 reported a 17.2 percent rise in net profit for the first quarter of fiscal 2021 at Rs 198.2 crore as against Rs 169.11 crore in the year-ago period.

The net profit of the company, which manufactures oral and body care products, beat CNBC-TV18's poll estimates of Rs 173 crore.

Revenue during the quarter fell 4.1 percent to Rs 1,040.6 crore from Rs 1,048.9 crore, YoY. Overall volumes declined 7 percent versus estimates of 10-11 percent decline.

Its toothpaste business delivered positive sales growth in the June quarter, the company told the exchanges, without sharing the numbers.

The company sells toothpaste, toothpowder, mouthwash, toothbrushes and dental gel under the Colgate brand name.

The toothbrush category, being more discretionary, did impact overall results, said Ram Raghavan, Managing Director at Colgate-Palmolive (India) Ltd in an earnings press release.

The company also sells personal care products like shower gels and liquid hand washes under the Palmolive brand name.

It did not share the performance of other oral care products or that of personal care products.

Operating performance during Q1FY21 was also better than Street estimates. EBITDA rose 2.7 percent to Rs 308 crore from Rs 299.8 crore while EBITDA margin improved by 200 bps to 29.6 percent from 27.6 percent, YoY.

“Our sharp focus aimed at fulfilling demand and ensuring uninterrupted access ensured agile and innovative approaches, specifically in our supply chain and distribution efforts,” Raghavan said.

“Our disciplined approach to managing all revenue and cost drivers, despite all the uncertainties and challenges around us on account of the pandemic, drove improvements in key financial metrics.”

The company said it launched a hand sanitizer in April and also announced a new range of toothbrushes, Colgate Gentle.

Himadri Buch
Himadri Buch
first published: Jul 29, 2020 07:17 pm