Colgate Palmolive shares trade lower in Mumbai as profit dips
13:26, 25 October 2021
Shares of Colgate Palmolive (India) finished lower Monday, after the maker of toothpaste, bodywash and other personal products said quarterly profit dipped as expenses rose.
Colgate Palmolive’s shares slipped 1.84% to INR1,534.90 on the National Stock Exchange (NSE), after the company reported a 1.82% year over year decline in net profit, at INR2.69bn, for the quarter through September.
Advertising spends jumped 12.7% year on year in the three months to 30 September, pushing overall expenses to INR9.98bn ($133.3m), according to a 25 October regulatory filing.
Net sales increased 5.2% year over year to INR13.44bn in the period under review, the second-quarter of the ongoing Indian financial year that ends in March.
The fast-moving consumer goods (FMCG) manufacturer declared a “first interim dividend” of INR19 per share for the financial year 2021-22. The cumulative pay-out to shareholders will be about INR5.17bn, the statement added.
“Our overall growth momentum across our brands / categories has shown a consistent trajectory with good recovery on volume growth trends quarter on quarter,” Colgate Palmolive (India) managing director Ram Raghavan commented.
“…Our commitment to invest behind our brands and innovation remains a critical driver. We see continued strengthening of our brands and recent innovations like Colgate Toothpaste for Diabetics, Vedshakti Mouthspray and the entire Gentle range of toothbrushes continue to gain traction with consumers across platforms…” he added.
The maker of Palmolive liquid hand washes has a market capitalisation of around INR417.5bn on the NSE, where its shares have lost some 2.8% so far this year.
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