Colgate Palmolive's India arm posts higher Q1 profit on price hikes

Colgate-Palmolive (India)

29/07/2024 14:09

BENGALURU, July 29 (Reuters) - Colgate Palmolive India
 COLG.NS  reported a 33% rise in first-quarter profit on Monday,
boosted by price hikes and steady domestic demand.
    The company's net profit rose to 3.64 billion rupees ($43.5
million) in the April-June period from 2.74 billion rupees a
year earlier.
    Even as Colgate Palmolive raised prices to offset higher raw
materials costs, customers continued to prioritize spending on
personal care products.
    Demand in rural markets outpaced growth in urban areas for a
second straight quarter, the company said.
    The toothpaste maker's overall sales rose 13% to 14.86
billion rupees, owing to a 13% growth in its domestic net sales
during the quarter.
    The company also sells its products in Asia Pacific and
South Africa, among others.
    "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).
    Consumer goods makers have faced growing competition from
smaller brands, which have been encroaching on their shelf space
as citizens cut back on expenses amid persistently high
inflation.
    Colgate Palmolive boosted its advertising expenses by 10% in
the quarter, driving a 9% increase in total expenses to 10.31
billion rupees.
    Earlier this month, Hindustan Unilever  HLL.NS , which makes
Pepsodent toothpaste among other products, posted a higher
first-quarter profit as price cuts boosted volumes. Dabur India
 DABU.NS  will report its quarterly results on Aug. 1.
    Last week parent Colgate-Palmolive  CL.N  raised its
forecasts for annual profit and organic sales, after beating
June-quarter estimates on resilient demand for its high-priced
products.
    Shares of Colgate Palmolive India closed up 1.4% ahead of
the results.


($1 = 83.7248 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Savio D'Souza and Eileen Soreng)
 ((AshnaTeresa.Britto@thomsonreuters.com;))