Colgate Palmolive (India) posts higher Q2 profit on strong demand

Colgate-Palmolive (India)

24/10/2024 08:41

Oct 24 (Reuters) - Colgate Palmolive (India)  COLG.NS 
reported a 16% rise in second-quarter profit on Thursday helped
by its expansion into rural markets and demand for its premium
personal care products.
    The toothpaste maker's net profit rose to 3.95 billion
rupees ($47 million) in the quarter ended Sept. 30, from 3.40
billion rupees a year earlier.
    In India, rural sales have outperformed urban on a
year-on-year basis for the third quarter in a row for consumer
goods, helped partly by higher government spending to boost the
rural economy.
    Colgate Palmolive's efforts to promote oral health programs
in rural areas helped drive demand for its products in the
hinterlands, while demand for its premium products such as
'Colgate Total' and 'Colgate Visible White' was strong among its
urban consumers.
    Oral care products contribute around 90% to the company's
total revenue.
    "Toothpaste achieved high single-digit volume growth...
Toothbrush continued to grow at double digits with rapid
premiumisation," said MD and CEO Prabha Narasimhan. 
    The company's sales rose 10% to 16.09 billion rupees, while
its domestic net sales grew 10.5% during the quarter.
    Meanwhile, the company's raw material costs surged 20%
during the quarter, pushing its total expenses up by 13%.
    Among other consumer goods makers, Hindustan Unilever
 HLL.NS  posted a smaller-than-expected profit amid higher
expenses on Wednesday, while Dabur India  DABU.NS , which makes
Dabur Red toothpaste, is yet to report earnings.    
    


($1 = 84.0625 Indian rupees)

 (Reporting by Ashna Teresa Britto; Editing by Eileen Soreng)
 ((AshnaTeresa.Britto@thomsonreuters.com;))