Colgate-Palmolive's Indian unit reports Q1 profit rise on demand recovery

Colgate-Palmolive (India)

26/07/2023 15:22

BENGALURU, July 26 (Reuters) - Toothpaste maker
Colgate-Palmolive (India)'s  COLG.NS  quarterly profit rose
30.5% on Wednesday, aided by improved domestic demand. 
    Net profit rose to 2.74 billion rupees ($33.40 million) for
the quarter ended June 30 compared to 2.10 billion rupees a year
earlier.
    Steady rural demand pick-up and some ease in domestic retail
inflation helped Indian consumer goods companies log gains
during the quarter. 
    Sales rose nearly 10.8% to 13.15 billion rupees, boosted by
the company's mainstay oral care category, with toothpaste sales
in the high double digits.
    Domestic sales grew 12.3%, with the sector seeing early
signs of recovery in rural areas, Colgate-Palmolive India CEO
Prabha Narasimhan said in a statement.
    In April, the company's U.S.-based parent Colgate-Palmolive
Co  CL.N  raised its full-year organic sales forecast, betting
on consistent price hikes and demand for its pet nutrition
products. 
    The company is set to report its June-quarter earnings on
Friday. 
    The Indian unit's results come after it reported a drop in
profit in three of the prior four quarters. 
    Earlier this month, local rival Dabur India  DABU.NS  said
it expects June-quarter sales to grow over 10% and gross margin
to expand due to easing inflation. 
    Dabur will report its quarterly earnings on Aug. 3 while
bigger rival Hindustan Unilever  HLL.NS  missed profit estimates
last week due to higher expenses. 
    Shares of Colgate-Palmolive (India) hit an all-time high of
1,909 rupees on Wednesday before closing 0.8% down ahead of its
results. The stock has risen 22.6% this year compared to a 19.7%
gain in the Nifty FMCG index  .NIFTYFMCG . 

($1 = 82.0312 Indian rupees)

 (Reporting by Biplob Kumar Das in Bengaluru; Editing by Sonia
Cheema)
 ((Biplobkumar.das@thomsonreuters.com; 9101861583;))