Colgate-Palmolive India Q1 FY25 results: Ad spends increase by 9.76% YoY to Rs 199 crore

Net sales increased to Rs. 1,485.8 crore from Rs. 1,314.7 crore, reflecting a 13.01% growth.

Colgate-Palmolive (India) announced its financial results for the first quarter ended June 30, 2024.The company's advertising expenditure for the quarter ended June 30, 2024, stood at Rs 199 crore, reflecting a year-on-year increase of approximately 9.76% from the Rs 181.3 crore spent in the same quarter the previous year. Compared to the Rs 168.8 crore spent in the quarter ended March 31, 2024, this represents a quarter-on-quarter increase of around 17.92%.

Colgate-Palmolive (India) delivered a 13.01% year-on-year topline growth for the quarter ended June 30, 2024. Net sales increased to Rs. 1,485.8 crore from Rs. 1,314.7 crore. The quarter witnessed continued demand pickup in rural markets outpacing growth in urban markets for the second quarter in a row. Led by this and good all-round performance of toothpaste, toothbrush and personal care, domestic revenues grew by 12.8% year-on-year for the quarter.

Net Profit after tax increased to Rs. 364.0 crore from Rs. 273.7 crore, a growth of 33.0% year-on-year for the quarter. Excluding the impact of exceptional items in the prior year, the net profit after tax grew by 26.3% year-on-year. The company continued to focus on enhancing overall brand experience while maintaining a disciplined approach towards cost controls.

Prabha Narasimhan, managing director and CEO of Colgate-Palmolive (India), said, “We are happy to report another quarter of strong and consistent performance led by robust topline growth across the portfolio and continued strengthening of competitive performance. Our toothpaste portfolio witnessed double-digit growth driven by high-single digit volume growth. Our continued investments in perceivable superiority in product, brand building and innovation are yielding significant results while strengthening our brand metrics to highest ever levels. In this quarter, our Toothbrush portfolio has also seen a concrete positive shift in competitive growth trajectory with strong double digit growth in topline. EBITDA margins remained consistent despite the higher investment in advertising, which increased by 10% y-o-y."

Key highlights of this quarter include a first to the world Whitening booster gel to play in the rapidly growing Whitening segment; the continued focus on category growth through “BrushatNight” campaign and sustained investment on superior communication which is driving the Colgate equity to its highest historical levels.

In this quarter, the company also released its third Environmental, Social, and Governance (ESG) Report along with the Annual Report for FY 2023-24. The report highlights the significant strides the company has made during the 2023-24 fiscal towards achieving the goals outlined in its Global 2025 Sustainability & Social Impact Strategy.

Key highlights of the Annual & ESG Report 2023 - 2024-

50% of Colgate’s Toothpaste portfolio (by volume) has transitioned to recyclable tubes, and Colgate-Palmolive India is on track to exit FY 2024-25 with 100% recyclability.

The company is well on its way to reach 100% reusable, recyclable, or compostable plastic packaging by 2025, with 83% already achieved.