Colgate Palmolive Q3 net up 1.6% yoy at Rs252.33cr as Colgate cuts down on publicity costs in the quarter

27 Jan 2022 , 06:48 PM

Colgate Palmolive Ltd reported 3.91% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs1,280.12cr. On a sequential basis, the revenues were down by -5.35%.

During the December 2021 quarter, the company stable performance in its core personal care and oral care verticals. During the quarter, Palmolive face cream also marked its entry into the Indian markets.

Colgate has been trying to draw the right balance between volumes and growth and has maintained top line growth in a tough quarter.

For the Dec-21 quarter, the operating profits were up on a yoy basis by 3.56% at Rs336.63cr. During the quarter, Colgate witnessed a sharp spike in the cost of raw materials, inventory costs as well as costs on employee benefits.

However, the company has managed to reduce its advertising and publicity cost in the quarter by 25% yoy in order to maintain operating performance.

Operating margins fell just marginally from 26.39% in Dec-20 quarter to 26.30% in the Dec-21 quarter. Operating margins were flat on a sequential basis.

Net Profit after tax (PAT) for the Dec-21 quarter was up 1.60% yoy at Rs252.33cr on the back of the operating performance getting transmitted to the bottom line. The net profit growth got impacted as the other income was lower in the quarter. It has launched Colgate Gum Expert with Curcumin extracts in the quarter to expand its portfolio offering. 

PAT margins fell from 20.16% in the Dec-20 quarter to 19.71% in the Dec-21 quarter. The PAT margins were just marginally lower on a sequential basis too.

Financial highlights for Dec-21 compared yoy and sequentially

	Colgate Palmolive
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 1,280.12	₹ 1,231.93	3.91%	₹ 1,352.42	-5.35%
EBITDA (Rs cr)	₹ 336.63	₹ 325.05	3.56%	₹ 355.87	-5.41%
Net Profit (Rs cr)	₹ 252.33	₹ 248.36	1.60%	₹ 269.17	-6.26%
Diluted EPS (Rs)	₹ 9.28	₹ 9.13		₹ 9.90
EBITDA Margin	26.30%	26.39%		26.31%
Net Margins	19.71%	20.16%		19.90%