Colgate reports net sales of Rs. 657.20 Cr in Q2 of 2011 - 12; Records 19% growth!

Colgate-Palmolive (India) Limited reported net sales of Rs. 657.2 Crore for the second quarter of the financial year 2011-12, a 19% increase over the same quarter of the previous year. Net Profit After Tax for the quarter is Rs. 99.7 Crore with Earnings per Share of Rs. 7.33 per share as against Rs. 7.38 per share for the same quarter of the previous year.

During this quarter, the company closed its Toothpowder production facility at Hyderabad. Excluding the costs associated with this closure (Voluntary Retirement Scheme and other related costs), Net Profit Before Tax in the current quarter was Rs. 139.5 Crore compared with Rs. 128.8 Crore for the same quarter of the prior year, an increase of 8.3%.

H1 2011-12: Net sales for the half year ended September 30, 2011 are Rs. 1,268.3 Crore, a 17% increase over the same period of the prior year. Reported Net Profit After Tax for the half year is Rs. 200.1 Crore.

During the quarter, the Company achieved a volume growth of 13% over the same quarter of the previous year. With volume market share (Oct'10-Sept'11) of 52.6% for toothpaste and 36.3% for Toothbrush, the Oral Care category registered a strong net sales growth of 20% in this quarter through its flagship brands "Colgate Dental Cream", "Colgate Active Salt", "Colgate Total", "Colgate MaxFresh", "Colgate Plax" and "Colgate Toothbrushes". New products like "Colgate Sensitive Pro-Relief" have also contributed to this growth and have achieved a strong leadership share of the sensitive toothpaste segment.

The recent launches of "Colgate Plax Sensitive Mouthwash" and "Colgate Plax Complete Care Mouthwash" have helped the Company to continue its growth momentum in the emerging mouthwash category with the volume market shares at 26.4% (Oct-Sept'11).

Following the outstanding success of "Colgate Sensitive Pro-Relief" and "Colgate Plax", the Company has introduced in the current quarter Colgate 360° Surround a ground-breaking and innovative toothbrush with a unique head that is packed with special cleaning features to provide a "whole mouth clean' experience. These Surround bristles, combined with the brush's wraparound cleaner, and cheek and tongue cleaner, provide 3X germ removal action.

In an inflationary environment, the Company's continuing efforts and focussed programs to enhance efficiencies and reduce costs continue to yield strong, positive results helping to maintain margin and fund investments in building and strengthening brand equity and the business. Prudent price increases and cost management has enabled the Company to maintain its Gross margin at 60% for this quarter despite significant inflationary pressure.

"Colgate" was ranked "# 1 India's Most Trusted Brand" in the Brand Equity Annual Survey 2011. It is the only brand to be in the Top 3 consistently for the last 11 years.