InvestorQ : What is your view on the quarterly results of Colgate Palmolive for the Sep-21 quarter?
diksha shah made post

What is your view on the quarterly results of Colgate Palmolive for the Sep-21 quarter?

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Dilmini Mercia answered.
2 months ago
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For the Sep-21 quarter, Colgate Palmolive reported 5.21% growth in total revenues at Rs.1,352 crore. Net profits were marginally lower by 2% at Rs.269 crore in the Sep-21 quarter. Although sales growth was just about 5.2%, growth momentum has sustained across various brands. Colgate enjoyed strong penetration in its core personal care business, with a lot greater focus in its core competency of oral care.

Even operating profits of Colgate fell by -2%, although the cost pressures were not as high as companies like Hindustan Unilever and Nestle. Operating profits in the quarter were principally hit by higher inventory costs resulting in working capital inefficiency. Colgate did not feel the pain of sharp spike in raw material costs. That explains why the operating margins were robust at 26.31%.

During the Sep-21 quarter, Colgate strengthened specific niche products like Colgate Toothpaste for diabetics, Vedshakti mouth spray and the entire gentle range of toothbrushes. Net margins for the Sep-21 quarter at 19.9% was below the recent comparable period.

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