InvestorQ : How did Colgate manage good numbers in a tough quarter like Jun-21?
sarah Leo made post

How did Colgate manage good numbers in a tough quarter like Jun-21?

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Rashi Mehra answered.
5 months ago
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Colgate Palmolive India reported 17.7% growth in net profits in a tough Jun-21 quarter at Rs.233 crore on a consolidated basis. For the said quarter, net sales were higher by 12% at Rs.1,158 crore, a rare double digit growth in the FMCG segment, on the strength of brands and distribution strength. However, if you compare with analyst estimates, then the sales and profit numbers were slightly below the street estimates.

However, Colgate was not spared the cost inflation stick. Like other FMCG companies, Colgate also suffered a 28.3% spike in raw material costs. However, this was partially compensated through inventory efficiency gains and selective price hikes in certain product lines. EBITDA for the quarter was 15% higher at Rs.350 crore while the product gross margins expanded 301 bps on a yoy basis.

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