Colgate net rises 19% to Rs 19 crore in Q1
By Our Corporate Bureau | 29 Jul 2002
Mumbai: Colgate-Palmolive (India) Ltd (www.colgate.co.in) has announced a 19-per cent increase in its net profit for the first quarter of 2002-03 to Rs 18.8 crore from Rs 15.8 crore in the same period last year.
As has been widely reported, the continuing economic slowdown of the past year has negatively impacted the demand in the fast-moving consumer goods sector. The sector has simultaneously witnessed aggressive promotional strategies, resulting in an accumulation of excessive stocks in distribution channels.
During the quarter, the company continued the planned reduction of the high trade inventory levels. This reduction combined with sluggish consumer demand has resulted in a decline in sales from Rs 306.6 crore in the first quarter 2001-02 to Rs 262.2 crore in the current quarter.
Driving growth
During the quarter the company relaunched its premium toothpaste — Colgate Total — in a green and white striped paste format. Colgate Total has the most advanced formulation in the world and is the only toothpaste to contain Gantrez, which combines with the active germ-fighting ingredients to provide a scientifically proven “shield of protection“ for as long as 12 hours after brushing.
Colgate Herbal was reformulated during the quarter and relaunched with an exciting new flavour and exotic herbs that have proven oral care benefits. All-India toothpaste volume market shares have continued to show an upward trend, gaining 0.7 per cent to 50.6 per cent in May 2002 over 49.9 per cent in March 2002.
Funding growth
The operating contribution to the sales ratio touched a record level of 30.7 per cent to sales as the company's focused programmes and concerted efforts to cut operational costs and improve efficiencies continue to yield positive results.
The operating profit for the quarter increased by 34.5 per cent to Rs 30.4 crore against Rs 22.6 crore achieved last year, improving the operating profit to sales ratio by 420 basis points to 11.6 per cent.
Colgate-Palmolive (India) Ltd is the country's leading provider of scientifically proven oral care products with multiple benefits at various price points. These have become an essential part of daily oral hygiene and therapeutic oral care in India. The range includes toothpastes, toothpowder and toothbrushes under the Colgate brand, as well as a specialised range of dental therapies under the banner of Colgate Oral Pharmaceuticals.
The company is also a leading producer of personal care products under the Palmolive brand name. Colgate has been ranked India's No 1 brand across all categories for eight out of nine years (1992-2001) by the A&M MODE annual survey of India's top brands.