Colgate Q4 Net Sales up behind strong investment in advertising
Mumbai, May 15, 2017:
- Q4 Net Sales increase by 3%
- Q4 Gross margin expands by 130 bps
- Increased advertising investments by 24% in Q4
Q4 2016-17: Colgate-Palmolive (India) Ltd today reported Net Sales for the quarter ended March 31, 2017 of Rs. 1171.8 crore, an increase of 3% over Q4 of the previous year. Volume declined 3% largely due to soft pickup in the wholesale channel.
Reported Net profit after tax for the quarter was Rs. 142.6 crore, a decrease of 0.5% from Q4 of the previous year, driven by an increase in media investments.
FY 2016-17: Reported Net Sales for the year ended March 31, 2017 were Rs. 4489.8 crore, an increase of 4% over the previous year. Volume declined 2% in the full year driven by soft consumer demand during the liquidity crunch period.
Reported Net profit after tax for the year was Rs.577.4 crore, a decline of 0.6% over the previous year. Reported Net profit after tax in the previous year included net tax reversals of Rs 14.9 crore relating to favourable tax assessments. Excluding the impact of these reversals, Net profit after tax for FY 2016-17 increased 2% over the previous year.
CONTINUING BUSINESS GROWTH IN A CHALLENGING ENVIRONMENT
Mr. Issam Bachaalani, Managing Director at Colgate-Palmolive (India) Ltd, said, “In the fourth quarter, we saw encouraging signs of recovery from the impact of the liquidity crunch in the prior quarter. With the liquidity situation improving, sales growth moved positively in the fourth quarter as compared to the trailing quarter. While volume was impacted in the quarter driven by the softness in the wholesale channel, we continue to invest behind innovation and building our brands in a heightened competitive environment.
The Company has maintained its leadership position in both the Toothpaste and Toothbrush categories in financial year 2016-2017, with volume market shares for the year at 55.1% and 47.4%, respectively.
We expect challenges while transitioning into the GST environment, including an impact on trade pipeline inventory. Colgate is taking all necessary steps to minimize business disruption during the transition.”
MAJOR NEW LAUNCHES IN FY 2016-17
Colgate Cibaca Vedshakti: An excellent natural solution to take care of all your oral care needs. The new natural toothpaste has the power of six natural ingredients. Developed using Colgate's expertise in oral care, Colgate Cibaca Vedshakti is enriched with the power of nature that helps in keeping your family’s teeth healthy and problem-free for long.
Colgate Sensitive Clove: Our first sensitivity toothpaste with natural ingredient. Colgate Sensitive Clove, a natural product based toothpaste, provides protection against sensitivity. Formulated with Potassium nitrate and clove oil, it penetrates deep into open dentin tubules to soothe sensitive areas of teeth.
Colgate MaxFresh Power Freeze : A new invigorating gel toothpaste infused with cooling crystals, which dissolve as you brush for a new dimension of freshness.
Colgate A1 Toothbrush: A new product that has been launched to address the consumer need for dense and long lasting bristles.
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.
Plax Spicy Fresh: This spicy fresh mouthwash variant has an intense Spicy Fresh sensation of Eucalyptus & Clove, for lasting fresh breath without the burning feeling. This alcohol free mouthwash removes 99% of germs & helps control bad breath 24/7
Palmolive Body Wash Men’s Range: Imported from Europe, Palmolive Men Body washes are available in three exciting variants: Palmolive Men Energising - enriched with Magnesium & Citrus Oil, Palmolive Men Refreshing - enriched with Sea Minerals & Eucalyptus Oil, and Palmolive Men Sensitive- enriched with Aloe Vera Extract & Vitamin E - this variant nurtures your sensitive skin.
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. Imported from Europe, and available in two exciting variants : Palmolive Men Classic and Palmolive Men Cool.
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) Limited
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. Colgate has been ranked as India’s #1 Most Trusted Brand across all categories for four consecutive years from 2003 to 2007 and in 2011, 2012, 2013, 2014, 2015 and 2016 by Brand Equity’s Most Trusted Brand Survey. It is the only brand to be in the top three from 2001-2016. For more information about Colgate’s business and products, please visit www.colgate.co.in