Updated January 22nd, 2024 at 17:03 IST
Colgate-Palmolive India reports impressive Q3 profit surge driven by lower expenses and urban demand
For the quarter ended December 31, net profit escalated to Rs 330 crore, surpassing the figure of Rs 243 crore reported in the same period a year earlier.
Colgate-Palmolive Q3 results: Colgate-Palmolive (India) has unveiled a robust financial performance in the third quarter, registering a significant 35.7 per cent jump in profit on Monday. The company attributes this notable surge to robust urban demand and a decrease in expenses.
For the quarter ended December 31, net profit escalated to Rs 330 crore, surpassing the figure of Rs 243 crore reported in the same period a year earlier. The positive momentum in profit is reflective of the strong consumer demand observed in urban areas and strategic cost management initiatives.
The consumer goods sector, including Colgate-Palmolive (India), has experienced a boost in sales driven by urban consumers with higher average incomes, even amid the backdrop of elevated prices for essential goods.
Total expenses for Colgate-Palmolive (India) saw a 0.5 per cent reduction, primarily influenced by lower inventory and raw material costs, contributing to the overall positive financial performance.
The Indian arm of the US-based consumer goods major reported an impressive 8.2 per cent increase in sales, reaching Rs 1,386 crore, with the core oral care category playing a significant role in driving this growth.
CEO Prabha Narasimhan highlighted the company's outreach efforts, mentioning a successful campaign during the quarter that reached over 300 million people in urban India, enhancing brand visibility and consumer engagement.
In contrast, rival Hindustan Unilever posted a smaller-than-expected increase in quarterly profit on Friday, citing intensified competition in the consumer goods sector and weaker demand in rural markets.
Looking ahead, Dabur India, set to report results next week, anticipates mid- to high-single-digit growth in consolidated revenue for the third quarter. The company attributes this projection to subdued pricing growth and disparities in demand between rural and urban areas.
(With Reuters inputs.)
Published January 22nd, 2024 at 17:03 IST