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

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.

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

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.