ICICI Direct: Colgate Palmolive Delivers Resilient Performance In Q1 Amid Disruption

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. 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 a strong performance with a 196 basis points expansion in operating margins and 17.2% growth in earnings.Revenues saw a 4.1% decline in sales with toothpaste growth remaining resilient. However, a dip in sales was largely in the toothbrush category, which is relatively discretionary.The impact of lockdown was minimal given consumer stocking and trade pipelines in toothpaste are relatively higher, which would have mostly filled the gap between halt and resumption of manufacturing.We believe the trade pipeline is back (or higher) to pre-Covid-19 levels by the end of June 2020.The company maintained gross margins helped by stable commodity prices.Further, a reduction in advertisement and promotion spends by 300 basis points (as percentage to sales) led to operating margin expansion of 196 basis points to 29.6%. Net profit grew 17.2% aided by reduction in corporate tax rate last year..Click on the attachment to read the full report:.DISCLAIMERThis 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 brokerage 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.

ICICI Direct: Colgate Palmolive Delivers Resilient Performance In Q1 Amid Disruption

ICICI Direct: Colgate Palmolive Delivers Resilient Performance In Q1 Amid Disruption

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