Colgate Q4 Review - Sales Growth Continues To Be Weak, Margin Unsustainable: Motilal Oswal
Colgate toothpaste is displayed in a shop window in Mumbai. (Photographer: Sebastian D’souza/Bloomberg News.)

Colgate Q4 Review - Sales Growth Continues To Be Weak, Margin Unsustainable: Motilal Oswal

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Motilal Oswal Report

Colgate-Palmolive India Ltd.’s weak sales growth trend has persisted in recent quarters, including Q4 FY21 – the two-year average sales growth stands at 5–6%.

It has now been six years since the company reported over 7% sales growth for any year. With 1. the launch of its non-oral care portfolio and 2. investments under the ‘brush twice a day’ campaign seemingly on the backburner, it is unlikely to return to the double-digit sales growth seen over FY08–15 anytime soon.

Notably, certain factors that led to the positive margin surprise in Q4 FY21 and the full-year FY21 – resulting in all-time high Ebitda margins – are not sustainable.

Click on the attachment to read the full report:

Motilal Oswal Colgate Palmolive Q4FY21 Result Update.pdf


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