Colgate-Palmolive (India) reported healthy set of numbers on a low base, broadly in-line with the consensus estimates. Revenue (net of excise duty in the base quarter) grew by 6.5% yoy to Rs1,041.3cr, in-line with estimates. Gross margin for the company expanded by 251bps yoy to 65.9%. EBITDA jumped by 26.7% yoy to Rs281.6cr, broadly in-line with the estimate of Rs273cr. EBITDA margin expanded by 432bps yoy to 27%. Adj. PAT (adjusted for the Rs34.1cr exceptional item) grew by ~22% yoy to Rs165.6cr. Reported PAT stood at 189.5cr, up 39% yoy.
Revenue was driven by 4% yoy volume growth against an estimate of 8%.
The volume growth was driven by strong performance in the naturals portfolio by Colgate Swarna VedshaktiToothpaste and other key brands namely, Colgate Strong Teeth with Cavity Protection and Colgate MaxFresh Toothpaste.
The company continued to lose market share in both toothpaste and toothbrush categories. Volume market share for toothpaste stood at 52.4% against 53.4% at the end of Q4FY18. Further, for toothbrush, it stood at 44.6% against 44.8% in Q4FY18.
Advertisement expense for the quarter was down by 87bps as a percent of net sales to 13.8%.
Other income for the quarter declined by 23.7% yoy to Rs9.2cr.
Tax rate for the quarter stood at 38.2% against 30.8% in Q1FY18.
Exceptional item for the quarter stood at Rs34.1cr on account of sale of company’s former factory land and buildings at Aurangabad, Maharashtra.
Colgate-Palmolive (India) Ltd is currently trading at Rs. 1,091.40, down by 33.3 points or 2.96% from its previous closing of Rs. 1,124.70 on the BSE.
The scrip opened at Rs. 1,139.50 and has touched a high and low of Rs. 1,139.50 and Rs. 1,080 respectively. So far 11,14,179 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.
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