Colgate-Palmolive's Indian unit's Q2 profit rises on higher demand

Colgate-Palmolive (India)

26/10/2023 12:13

BENGALURU, Oct 26 (Reuters) - Colgate-Palmolive (India)
 COLG.NS  reported a 22% rise in the second-quarter profit on
Thursday, aided by rising urban demand for high-priced
toothpastes and signs of growth in rural consumption.
    The company's net profit rose to 3.40 billion rupees ($40.86
million) for the quarter ended Sept. 30 compared with 2.78
billion rupees a year earlier.
    Sales rose 6.1% to 14.62 billion rupees, helped by its 
mainstay oral care category.  
    The rise of premium oral hygiene products has given
customers with larger incomes access to higher-quality options.
Intensive marketing efforts and increased distribution,
meanwhile, have boosted demand in rural areas.
    "In this quarter we have doubled down on the (flagship)
Colgate Strong Teeth (toothpaste) relaunch, expanding reach and
availability," Colgate-Palmolive (India) CEO Prabha Narasimhan
said in a statement.
    Last week, rival Hindustan Unilever  HLL.NS  reported a
bigger-than-expected increase in profit as it benefited from
increased sales from its beauty, home, and personal care
segments.
    Colgate Palmolive (India), which also makes handwash and
shower gel, declared its first interim dividend of 22 rupees per
share for the fiscal year 2023-2024.
    Shares of the company fell 1.9% on Thursday ahead of its
results. The stock has risen 32.4% this year compared with a
15.3% gain in the Nifty index for fast-moving consumer goods
 .NIFTYFMCG .


($1 = 83.2103 Indian rupees)

 (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by
Mrigank Dhaniwala)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))