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Colgate Q1 Review - Premiumisation Saves The Day: Prabhudas Lilladher

Colgate Q1 Review - Premiumisation Saves The Day: Prabhudas Lilladher

A Colgate-Palmolive Co. Colgate brand toothbrush. (Photographer: Daniel Acker/Bloomberg)
A Colgate-Palmolive Co. Colgate brand toothbrush. (Photographer: Daniel Acker/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

We are increasing Colgate-Palmolive India Ltd.'s earnings per share estimates by 2.7%/2.9% for FY22/FY23 on the back of-

  1. superior gross margins due to increased premiumisation and lower sales of toothbrush

  2. higher category growth and salience for large packs

  3. increased Ad spends (up 280 basis points YoY) and ramp up in innovations and

  4. aggression in new segments which offer growth opportunity.

Colgate's Q1 numbers were a mixed bag with disappointing volume growth of ~8% on a low base (down 8%), whereas gross margin expansion led by superior mix was positive.

Click on the attachment to read the full report:

Prabhudas Lilladher Colgate Q1FY22 Result Update.pdf

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