Colgate-Palmolive: Subdued show on growth as well as margin
Premiumisation trends and increase in market share by Colgate-Palmolive are what investors need to focus on, going forward
October 26, 2021 / 09:25 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Colgate-Palmolive India’s (CPIL; CMP: Rs 1,533; Market Capitalisation: Rs 41,700 crore) quarterly results were marginally below Street expectations with its top line remaining flat and gross margins under pressure.
With a focus on premium products, CPIL continues to invest in brands. Its advertisement and publicity expenditure increased by 13 percent year on year (YoY), and it now constitutes 14 percent of sales. CPIL has declared an interim dividend of Rs 19 per share.
September 2021 quarter results
Revenues grew by 5...