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.
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