Colgate Q4 Review - Sustained Elevated Margins Despite High Ad Spends: ICICI Direct

Colgate-Palmolive Co. toothpaste products are displayed for a photograph. (Photographer Scott Eells/Bloomberg).

Colgate Q4 Review - Sustained Elevated Margins Despite High Ad Spends: ICICI Direct

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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.

ICICI Direct Report

Colgate-Palmolive India Ltd. reported strong results with 19.8% revenue growth largely led by volumes.

Though a low base quarter resulted in strong growth in Q4, we believe continued healthy traction in rural regions also contributed to strong numbers.

New products like Colgate toothpaste for diabetics, Vedshakti spray and oil are witnessing strong growth, specifically in chemist and e-commerce channels.

Toothpaste category remained insulated from pandemic but toothbrush category growth was adversely impacted given discretionary nature of the product.

Gross margins expanded 301 basis points mainly due to benign prices of calcium carbonate and Sorbitol.

Click on the attachment to read the full report:

ICICI Direct Colgate Palmolive Q4FY21 Result Update.pdf

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