Colgate's net sales up 7%, net profit up 23% for Q1

Mumbai: Colgate-Palmolive (India) Limited has reported a 7 per cent increase in net sales to Rs242.7 crore for the first quarter of 2004-05 over the same quarter last year. Net profit for the quarter grew 23 per cent to Rs25.4 crore.

The aggressive price cuts implemented in Q1 2003-04 in its core toothpaste category combined with ongoing investments in brand building have resulted in double digit unit volume growth in the quarter. Strong volume growth was evident in its flagship brand CDC, and Colgate Cibaca emerged as the clear market leader in the economy segment. The company also launched Colgate Motion (a battery toothbrush for adults) priced at Rs 395 during the quarter.

The operating profit (EBITDA) ratio has increased by 350 basis points to 16.7 per cent of sales. EBITDA and net profit for the quarter grew by 35 per cent to Rs40.6 crore and by 23 per cent to Rs25.4 crore respectively.

During the quarter, the board of the company declared a first interim dividend for the year ending March 31, 2005, of 15 per cent, i.e. Rs1.50 per share, payable on or about July 23, 2004. For the year 2003-04, the company paid a total dividend of 60 per cent i.e. Rs6.00 per share including a one-time special 25th anniversary dividend of 12.5 per cent i.e. Rs1.25 per share.