Colgate Beats Estimates Despite GST-Led Disruption
Colgate reports a near 8 percent increase in profits, even as the volumes shrink.
Colgate-Palmolive India Ltd.’s profit and margin expanded even as volumes shrank in the first quarter as dealers cut stock ahead of the implementation of the Goods and Services Tax regime.
Net profit of the fast-moving consumer goods company rose nearly 8 percent year-on-year to Rs 136 crore, the company said in an exchange filing.
Volumes fell 5 percent on a year-on-year basis, in line with estimates. The company passed on the benefits of GST to consumers this quarter, leading to an 8-9 percent reduction in prices for the toothpastes and toothbrushes category, Issam Bachaalani, managing director of Colgate-Palmolive India said in the filing.
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 initiativesIssam Bachaalani, Managing Director, Colgate-Palmolive India
Total operating income rose 2.7 percent to Rs 1,118 crore from the same period last year
Earnings before interest, tax, depreciation and amortisation rose 4.6 percent to Rs 221.3 crore on a year-on-year basis. The EBITDA margin expanded by 190 basis points to 22.7 percent from last year.
Maintains Market Share In Core Businesses
Despite the disruption on account of GST, the FMCG major continued to maintain its leadership position in its core toothbrush and toothpaste categories. Its market share in toothpaste stood at 53.3 percent while that in the toothbrushes category stood at 45 percent.