Colgate-Palmolive India reported higher-than-expected net profit and revenue for the June quarter, driven by price hikes and a pick-up in rural demand. The oral care major posted a 33% year-on-year (y-o-y) rise in June-quarter profit to Rs 364 crore. The consensus of analysts’ estimates polled by Bloomberg projected a profit of Rs 331 crore for the quarter. Revenue for the quarter grew 13% y-o-y to Rs 1,486 crore, ahead of Street estimates of Rs 1,429 crore.
Demand in rural markets outpaced growth in urban areas for the second consecutive quarter, the company reported, with domestic net sales growing 13% compared to the year-ago period. Operating margins remained consistent despite higher advertising investment, which increased by 10% y-o-y, the company said.
“Our toothpaste portfolio witnessed double-digit percentage growth driven by high-single digit percentage volume growth,” said Prabha Narasimhan, managing director and CEO of Colgate-Palmolive India.
In the June quarter, Colgate’s toothbrush portfolio also saw double-digit growth in topline, Narasimhan added.
Last week, parent company Colgate-Palmolive raised its forecasts for annual profit and organic sales for the 2024 calendar year, after beating June-quarter estimates on resilient demand for its high-priced products.