Earnings Summary Colgate-Palmolive (India) Ltd.(NSE: COLPAL) | Q3 FY23 Results | Total Income rises 1.2% yoy

Colgate-Palmolive (India) Ltd.(NSE: COLPAL) is an Indian subsidiary of Colgate-Palmolive Company, a global consumer products company. The company is engaged in the manufacture and sale of a wide range of personal care, oral care, and home care products, including toothbrushes, toothpastes, mouthwashes, and soaps. Colgate-Palmolive (India) Ltd is the market leader in the oral care segment and is one of the largest fast-moving consumer goods companies in India. The company has a strong distribution network and has established a significant presence in the rural and urban markets in India.

Colgate-Palmolive (India) Limited reported a growth of 0.8% in its net sales for the third quarter of the financial year 2023 (Q3FY23), with net sales reaching Rs 1,281.2 crore. The company saw a domestic sales growth of 2.3% for the same quarter. The net profit after tax for Q3FY23 was Rs 243.2 crore, compared to the net profit of Rs 252.3 crore for the same quarter in the previous financial year (Q3FY22). Over the first nine months of the financial year 2023 (9MFY23), the company reported a net sales growth of 1.9% to reach Rs 3,846.2 crore. The net profit for the 9MFY23 period was Rs 730.9 crore.

The company saw growth in its domestic revenue of 2.3%, while exports declined during the same period. The oral care category has reached saturation, with penetration levels exceeding 90% in both urban and rural regions, with growth only being contributed by the natural and Ayurveda sub-categories. Colgate reported a sales growth of 1.9% over the first nine months of the financial year 2023 (9MFY23). Marketing spending increased 137 bps to 13.2% of sales, while employee and overhead spending decreased by 20 bps and 17 bps respectively (percentage of sales).

Colgate-Palmolive India’s Managing Director, Ms. Prabha Narasimhan, stated that the company is focusing on building oral care habits in India and driving innovation through science-led products and premiumization. The company has launched an e-commerce platform specifically for dentists, and has also partnered with the Andhra Pradesh government to educate children on oral health. Despite adverse macro factors impacting oral care consumption in the quarter, the company remains optimistic and will continue to invest in category and brand building.

Overall, the company’s financial performance for the quarter ended December 31, 2022, was solid. The company’s revenue has increased year over year, and the company has been able to maintain its market position and report a net profit. Colgate is focusing on driving premiumization in the oral care category through new launches such as Colgate Visible White O2 and Colgate Diabetics toothpaste, and also propelling growth through natural oral care products under the Ved-Shakti brand.