Q1 Net Profit up 8%, Q1 Net Sales down 3%
Mumbai, August 03, 2017
- Net Sales performance impacted primarily due to GST transition
- Gross margin expanded by 50 bps
- EBDITA expanded by 150 bps at 20% to sales
- Continued strong media investment behind our core equities
- GST benefits passed on to consumers from July 1st shipments
- Colgate wins India Digital Media Award for “Pocket Dentist” – an initiative to address oral health questions in rural areas
Q1 2017-18 : Colgate-Palmolive (India) Ltd today reported Net Sales for the quarter ended June 30, 2017 of Rs. 1109.9 crore, a decrease of 3% over Q1 of the previous year, largely due to destocking in the trade channel ahead of the implementation of GST. Volume declined 5% during the quarter.
Reported Net profit after tax for the quarter was Rs. 136.4 crore, an increase of 8% vs Q1 of the previous year.
The Company continues to maintain its leadership position in both the Toothpaste and Toothbrush categories, with volume market shares at 54.3% and 45.0% respectively in Q1 2017-18.
Mr. Issam Bachaalani, Managing Director at Colgate-Palmolive (India) Ltd, said, “In the run up to the implementation of GST, we did expect many challenges including an impact on trade pipeline inventory. Colgate has been long preparing for this and in anticipation took necessary steps to minimize business disruption. We are pleased to inform that the required changeover in our systems and processes has been smoothly accomplished.
Despite the transition challenges leading to softness in sales, we are pleased to report an 8% increase in profits, margin expansion of 50 bps and EBITDA by 150 bps.
GST has enabled us to pass on the benefits to our consumers leading to a reduction in MRPs by 8 to 9% for our key categories of Toothpastes and Toothbrushes.
We continue to focus on our priorities of strengthening the core of our business and driving competitive and profitable growth while staying committed to our values and sustainability initiatives.”
MAJOR ACTIVITIES IN 2017
Colgate Star Toothbrush: An entry toothbrush product that has been launched in select markets to drive penetration at the bottom of the pyramid, this toothbrush also comes with a tongue cleaner.
Colgate Slim Soft Advanced Toothbrush: It has dual core slim tip bristles that gently reach 7X deeper below the gum line and makes gums 300% healthier vs. an ordinary flat trim toothbrush.
Palmolive Body Wash Men’s Range: Palmolive Men Body washes are available in three exciting variants: Palmolive Men Energizing, Palmolive Men Refreshing and Palmolive Men Sensitive.
Palmolive Men Shaving Foams: The product helps soften your beard as you shave, allowing your razor to get close to your skin without causing skin irritation and is available in two exciting variants: Palmolive Men Classic and Palmolive Men Cool.
Pocket Dentist: Colgate’s mobile ring-back service providing easy dental care information access in rural India received multiple honors at the India Digital Media Awards (IDMA) in June 2017. It is currently live in two districts of Uttar Pradesh, and is run in partnership with Indian Dental Association. It detects multiple dialects and responds to the 30 most common oral health questions to address 91% of rural dwellers’ oral health problems in areas where over 80% of rural households may have only an access to basic mobile phones. Villagers can access 'Pocket Dentist' with a free of charge missed call from basic mobile, without data charges and receive a no-cost call-back in their dialect within minutes.
MOST TRUSTED BRAND
Colgate has been ranked as India’s #1 Most Trusted Brand in The Economic Times’ Brand Equity 2016 annual survey for the 6th consecutive year.
ABOUT COLGATE-PALMOLIVE(INDIA) LTD.
Colgate-Palmolive (India) Limited is India’s leading provider of scientifically proven oral care products with multiple benefits at various price points. The range includes toothpastes, toothpowder, toothbrushes and mouthwashes under the “Colgate” brand, as well as a specialized range of dental therapies under the banner of Colgate Oral Pharmaceuticals. These have become an essential part of daily oral hygiene and therapeutic oral care in India. The Company also provides a range of personal care products under the ‘Palmolive’ brand name. For more information about Colgate’s business and products, visit the Company’s website at www.colgatepalmolive.co.in