Colgate Q1 Review - Topline Growth Fails To Excite; Margin Delivery Remains Strong: Systematix
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Systematix Research Report
Colgate-Palmolive India Ltd.’s Q1 FY22 results were largely in-line with our estimates.
Revenues grew 12% YoY on a low base of down 4.1% YoY and declined sequentially by 9.1%.
On a two-year compound quarterly growth rate basis as well, revenue growth remained muted at 3.7%.
We estimate toothpaste volume growth of ~6-7% YoY in Q1 FY22.
Ebitda margin was 50 basis points above our estimate led by a strong 300 basis points YoY expansion in gross margin.
Ebitda/adjusted profit after tax grew 15.3%/17.7% YoY.
Colgate’s strategy of-
winning with brands,
leading innovation by building platforms, technological superiority and new launches and
strengthening go-to-market across e-commerce, modern trade and wholesale channels is an effort in the right direction.
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