Colgate Palmolive shares decline over 5% as soft urban demand dents March quarter results

Colgate Palmolive shares decline over 5% with weak quarter 4 earnings reveal

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26 Aug, 2025 12:21

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Shares of Colgate-Palmolive (India) fell over 5 percent on May 22 after the company reported a weaker-than-expected results for the March quarter, with both profit and sales declining year-on-year on softer urban demand and rising competition.

For the quarter ended March 31, 2025, Colgate-Palmolive (India) posted a 6 percent drop in net profit to Rs 355 crore, compared to Rs 379.82 crore in the same period last year. The decline was primarily due to weak business, with net sales down to Rs 1,452 crore from Rs 1,481 crore in the year-ago quarter.

Total income for the quarter stood at Rs 1,481.57 crore, down from Rs 1,512.66 crore, while expenses were marginally higher at Rs 1,003.95 crore versus Rs 1,001.3 crore last year.

Despite the subdued quarterly performance, the company reported an 8.5% increase in net profit for the full financial year 2024-25, reaching Rs 1,437 crore, up from Rs 1,324 crore in the previous year. Annual net sales also rose to Rs 5,999 crore, a 6.3 percent increase year-on-year, supported by mid-single-digit value growth in its toothpaste segment

The management attributed the challenging fourth quarter to softening urban demand and heightened competition in the personal care and oral hygiene categories. “The operating environment proved challenging in the second half of the year, primarily due to softening urban demand and intensified competition, which impacted Q4FY25 performance,” said Managing Director & CEO Prabha Narasimhan. She added that while near-term macro headwinds are expected to persist, the company anticipates a gradual recovery in market conditions later in the year.

Colgate-Palmolive (India) declared a second interim dividend of Rs 27 per share, bringing the total dividend for FY25 to Rs 51 per share. The latest payout, amounting to Rs 734 crore, will be distributed on or after June 16, 2025.

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