FMCG major Colgate-Palmolive India Ltd (CPIL) reported a 2.27% decline in its net profit to Rs 316.22 crore for the fourth quarter ended March 31, 2023. The company attributed the decline in profits to the impact of a one-time tax reversal. CPIL had posted a net profit of Rs 323.57 crore in the January-March quarter a year ago, as per the BSE filing.
The company’s total income during the quarter under review stood at Rs 1,341.20 crore, up 4.03% from Rs 1,289.10 crore in the corresponding quarter last year. CPIL’s total expenses increased by 4.13% to Rs 953.56 crore during the quarter, as against Rs 915.99 crore in the year-ago period.
In a statement, CPIL said that the toothpaste category has witnessed a slowdown in growth as consumers are trading down to smaller pack sizes and more affordable brands. However, the company’s strategic focus on advertising and promotions, along with innovations in products, helped the company to continue its growth momentum.
The company’s oral care category saw a growth of 4.5%, driven by the strong performance of the Cibaca Vedshakti brand. Meanwhile, the personal care category witnessed a growth of 11.5%, mainly due to the good performance of Palmolive Naturals.
For the financial year 2022-23, CPIL’s net profit increased by 7.29% to Rs 1,533.74 crore, as against Rs 1,429.12 crore in the previous year. The company’s total income for the year stood at Rs 5,234.74 crore, up 6.28% from Rs 4,923.44 crore in the previous year.
The company’s board of directors has recommended a final dividend of Rs 23 per share for the financial year 2022-23. The total dividend for the year, including interim dividend of Rs 18 per share, amounts to Rs 41 per share. The dividend is subject to the approval of shareholders at the upcoming annual general meeting.
The company’s board of directors has recommended a dividend of Rs 35 per share for the year ended March 31, 2023, subject to the approval of shareholders. The total dividend payout for the year will be Rs 630 crore, including corporate dividend tax.
Commenting on the results, Ram Raghavan, Managing Director at CPIL, said, “We continue to deliver steady growth despite a challenging operating environment. Our results are a reflection of our focus on innovation, cost management, and productivity enhancements, which have enabled us to stay ahead of the curve.”
CPIL’s total income during the quarter under review stood at Rs 1,485.12 crore, up 3.84 per cent from Rs 1,431.07 crore in the corresponding quarter last year. The company’s revenue from operations for the quarter was up by 4.2 per cent to Rs 1,341.12 crore from Rs 1,286.11 crore in the year-ago period.
CPIL’s board of directors has also approved an investment of up to Rs 500 crore in setting up a manufacturing plant in Gujarat to cater to the growing demand for oral care products in the country. The plant will be set up in Sanand, Gujarat, and is expected to be operational by 2025.
CPIL Managing Director Ram Raghavan said, “We continue to drive growth by focusing on product innovation, advertising and promotions. We are also increasing our digital presence to cater to the changing consumption patterns of our consumers. Our efforts towards sustainability and ESG (environmental, social and governance) initiatives have further strengthened our commitment to a better world.”
The company’s shares closed at Rs 1,926.80 apiece on the BSE on Friday, down 1.33% from the previous close. Colgate-Palmolive India Ltd is a subsidiary of the New York-listed Colgate-Palmolive Company, which is a global leader in the consumer products industry. The Indian arm of the company operates in oral care, personal care, and home care categories, among others.
