Colgate-Palmolive net up 57.74%

Written by fe Bureau | Mumbai | Updated: Jul 30 2013, 20:23pm hrs
Colgate-Palmolive (India), makers of Colgate dental cream, on Monday reported a 57.74% increase in its net profit at R185.22 crore for the first quarter ended June 30, 2013 compared to R117.42 crore during the same period of the previous fiscal.

The company's net sales rose to R844.62 crore in the June quarter as against R736.08 crore in the corresponding quarter of FY 13.

''During the quarter, we achieved volume growth of 9% over the same quarter of the previous year led by strong growth of 11% in its toothpaste category, said the company.

The company has accelerated its leadership position by registering a 55.9% volume market share for the January- June 2013 period, compared to 54.7% in Jan-June 2012.

On Colgate Palmolive India's performance, Abneesh Roy, associate director(Research) at Edelweiss Capital, said,''The company's gross margin expanded 146 bps to 61.8%.However, Ebitda margin contracted 226bps due to higher other expenses (up 404bps) likely due to higher promotions.

During the quarter, the company sold its division, Global Shared Services Organisation, to Colgate Global Business Services, a subsidiary of Colgate-Palmolive Company USA, for R55.5 crore.