Colgate India Q2 Review - Sales Growth Remains Tepid; Outlook Weak: Motilal Oswal
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Motilal Oswal Report
Colgate-Palmolive India Ltd.’s Q2 FY22 result was in line with our estimates.
Two-year average sales growth, at 5.2% in Q2 FY22, continues to remain in the 4-6% range seen in recent quarters, with little indication of an improvement, despite consistent advertising spends.
With the launch of the non-oral care portfolio, and investments under the ‘brush twice a day’ campaign seemingly on the back burner, it is unlikely to return to double-digit sales growth seen over FY08–15 anytime soon.
We maintain our neutral view on weak topline growth, rising material cost pressures, and limited scope for price hikes.
There is no evidence that Colgate is regaining lost market share in the core oral care business.
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