Colgate-Palmolive shares are down as disappointing Q2 volume growth occurs

27 Oct 2023 , 01:46 PM

In early trading, Colgate-Palmolive (India) shares increased more than one percent; however, on October 27, the company gave up its gains and saw a decline in value. The dental care company’s profit for the September quarter increased by 22.3% year over year to Rs 340 crore, but its volume growth was far below expectations.

Better-than-expected EBITDA margins, facilitated by pricing and efficiencies, drove the profit. Although it increased by 6% annually to Rs 1,471 crore, operating revenue fell short of experts’ projections. In contrast to experts’ projections of a mid-single-digit increase, the company’s volumes were flat.

For the current fiscal year, the board announced the first interim dividend of Rs 22 per share.

Colgate Strong Teeth was relaunched, and the firm concentrated on expanding its reach and improving product availability. Colgate Max Fresh also performed exceptionally well, according to news reports.

Additionally, it relaunched Colgate Zig Zag, the company’s biggest toothbrush brand, with an improved formula that highlighted its key selling point of thorough interdental cleaning.

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