Colgate-Palmolive India Q1 FY18 net profit up 8%, net sales down 3%

Colgate-Palmolive (India) Ltd has reported net sales for the quarter ended June 30, 2017 of Rs 1,109.9 crore, a decrease of 3 per cent over Q1 of the previous year, largely due to destocking in the trade channel ahead of the implementation of GST. Volumes declined 5 per cent during the quarter. 

The company saw an 8 per cent increase in its net profit after tax for Q1 FY2018 at Rs 136.4 crore. It also continued strong media investment behind its core equities. 

Colgate-Palmolive India continues to maintain its leadership position in both the Toothpaste and Toothbrush categories, with volume market shares at 54.3 per cent and 45.0 per cent, respectively, in Q1 2017-18. 

Issam Bachaalani, Managing Director, Colgate-Palmolive (India) Ltd, said, “In the run up to the implementation of GST, we did expect many challenges, including an impact on trade pipeline inventory. Colgate has been long preparing for this and in anticipation took necessary steps to minimise business disruption. We are pleased to inform that the required changeover in our systems and processes has been smoothly accomplished.” 

He further said, “Despite the transition challenges leading to softness in sales, we are pleased to report an 8 per cent increase in profits, margin expansion of 50 bps and EBITDA by 150 bps.” 

“GST has enabled us to pass on the benefits to our consumers, leading to a reduction in MRPs by 8 per cent to 9 per cent for our key categories of Toothpastes and Toothbrushes. We continue to focus on our priorities of strengthening the core of our business and driving competitive and profitable growth while staying committed to our values and sustainability initiatives,” Bachaalani added.