Colgate's Q1 net sales up 15%; net profit up 10%

Colgate-Palmolive (India) Limited today reported net sales of Rs. 844.6 crore for the first quarter of the financial year 2013-14, a 15% increase over the previous year.  Reported Net Profit After Tax (including exceptional item) is Rs 185.2 crore with Earnings Per Share of Rs. 13.62 as against an Earnings Per Share of Rs. 8.63, an increase of 58% over the same quarter of the previous year

DRIVING GROWTH

During the quarter, the Company achieved a volume growth of 9% over the same quarter of the previous year led by a strong growth of 11% in its toothpaste category and further enhanced its leadership position by registering a 55.9% volume market share for Jan-June’13 compared to 54.7% in Jan-Jun’12. The flagship brands “Colgate Dental Cream”, “Active Salt”, “Max Fresh” and “Colgate Total” have contributed to this consistent growth.
The Company further strengthened its leadership position in the Toothbrush category by registering a volume market share of 41.4% (Jan’13-Jun’13) as against 38.7% (Jan’12-Jun’12).

INNOVATION FOR GROWTH

The launch of Visible White reflects the Company’s continued commitment to growing the oral care category by creating new segments through innovation and technologically advanced products. Visible White has whitening accelerators, high cleaning silica and polyphosphates which remove and prevent tooth surface stains for visibly whiter teeth.

FUNDING GROWTH

Despite the inflationary environment and pressure on the rupee, the Company’s focus on driving efficiencies and reducing costs has resulted in higher Gross Margin..

SALE OF BUSINESS OPERATIONS

The Company recorded an exceptional item of Rs. 55.5 crores (net of tax) with respect to the slump sale of Global Shared Services Organisation to Colgate Global Business Services Private Limited, a 100% subsidiary of Colgate-Palmolive Company, USA, after obtaining the requisite approvals from the Board of Directors and Shareholders.