Colgate-Palmolive's India arm beats earnings estimates on price increases

Colgate-Palmolive (India)

20/10/2022 10:25

BENGALURU, Oct 20 (Reuters) - Colgate-Palmolive (India)
 COLG.NS  reported quarterly profit above market estimates on
Thursday, benefiting from price increases it had implemented to
counter the blow from a surge in raw material costs.
    Consumer packaged goods makers across the globe have jacked
up prices of everything from toothpaste to coffee as the
Russia-Ukraine war and global supply snarls led to an increase
in the price of commodities, including palm oil, cocoa and crude
oil.
    The price increases drove profit at Colgate-Palmolive around
3% higher from a year earlier to 2.78 billion Indian rupees
($33.51 million). Analysts on average had expected 2.75 billion
rupees, according to IBES data from Refinitiv.
    The Indian arm of U.S. consumer goods major also said there
was strong demand for its Colgate toothpaste variants Strong
Teeth, MaxFresh and Active Salt, while demand for its newly
launched Visible White O2 also held up.
    Sales increased nearly 3% to 13.78 billion rupees.
    At a time when inflation-hit consumers are looking for ways
to save cash, the toothpaste maker remains "cautiously
optimistic on the overall growth trend, especially in rural,"
Colgate-Palmolive Managing Director Prabha Narasimhan said.
    The recent easing of commodity prices, however, will boost
profits for consumer majors from Colgate-Palmolive to Hindustan
Unilever  HLL.NS  even as analysts tip them to funnel savings
towards product launches and advertising.
    Colgate-Palmolive said it has lined up new launches after
having introduced a charcoal-based toothpaste in the reported
quarter. It also announced an interim dividend of 18 rupees per
share.
($1 = 82.9625 Indian rupees)
 (Reporting by Praveen Paramasivam in Bengaluru; Editing by
Saumyadeb Chakrabarty)
 ((Praveen.Paramasivam@thomsonreuters.com; https://twitter.com/PraveenR_P
 ; +91 867-525-3569;))