Colgate Palmolive , a leading oral care company, has announced its financial results for the first quarter, revealing a decline in both net sales and profit amid challenging market conditions.

Financial Performance

For the quarter ended June 30, Colgate-Palmolive India reported:

The company attributed the decline in performance to several factors, including subdued urban demand, elevated competition intensity, and a high growth base from the previous year.

Management Commentary

Ms. Prabha Narasimhan, Managing Director & CEO of Colgate-Palmolive (India) Limited, commented on the results: "Our Q1 results reflect persistent headwinds from tough operating conditions on account of subdued urban demand and elevated competition intensity. The current quarter performance is also influenced by cycling a high base from the previous year; Net Sales grew at 12% CAGR in the base year same period (Q1 FY23-Q1 FY25)."

Despite the challenges, Ms. Narasimhan emphasized the company's commitment to its strategic priorities. She highlighted progress in category premiumization, with the premium portfolio delivering strong revenue growth. The company also maintained its brand investments, leveraging its healthy profit margins.

Strategic Initiatives and Product Launches

Colgate-Palmolive India continued its focus on innovation during the quarter, introducing two new product formats:

1. Colgate Kids Squeezy Toothpaste: Launched in Strawberry and Watermelon flavors for children aged 3-6, featuring an easy-to-squeeze bottle and fun grip designed for small hands.

2. MaxFresh Mouthwash Sachet Stick: Introduced in Fresh Tea Flavor, catering to on-the-go freshness needs.

Corporate Social Responsibility

The company hosted the Oral Health Movement Summit in June, furthering discussions on oral health. Shri JP Nadda, Honorable Union Minister of Health and Family Welfare, Government of India, attended the event and unveiled 'India's Oral Health Report,' a publication offering insights based on nationwide dental screening data.

Environmental, Social, and Governance (ESG) Initiatives

Colgate-Palmolive India released its fourth ESG Report along with the Annual Report during the quarter. The company highlighted its efforts in sustainability, including reducing plastic waste, promoting recyclability, and conserving water and energy both in its manufacturing facilities and the communities it serves.

Outlook

Looking ahead, the management expects to navigate the current challenges and anticipates a gradual recovery in the second half of the year. The company remains committed to executing its strategic priorities and maintaining its position as a market leader in oral care in India.

Investors and stakeholders can access the full financial results and ESG report on the company's investor website at www.colgateinvestors.co.in .

Colgate-Palmolive (India) Limited faces a revised outlook from Goldman Sachs, which has reduced the company's price target following a disappointing fourth-quarter performance. The move comes as the consumer goods giant grapples with challenging market conditions and increased competition.

Target Price Reduction

The global investment bank has cut Colgate-Palmolive's price target to Rs 2,375.00 from its previous target of Rs 2,630.00. This adjustment reflects growing concerns about the company's near-term prospects in the Indian market.

Q4 Performance and Challenges

Colgate-Palmolive reported a 1.80% year-on-year decline in revenue for the fourth quarter. The company's performance was primarily impacted by:

• Weak urban consumption
• Intensifying competition in the oral care segment

Goldman Sachs' Stance

In light of these challenges, Goldman Sachs has maintained its 'sell' rating on Colgate-Palmolive's stock. The brokerage firm's cautious outlook underscores the headwinds facing the company in the current market environment.

Company Outlook

Despite the current setbacks, Colgate-Palmolive has provided insights into its expectations for the coming fiscal year:

• Challenges are expected to persist through the first half of fiscal year 2026 (1HFY26)
• The company anticipates a rebound in the second half of FY26 (2HFY26)

Strategic Focus

To navigate through these challenging times, Colgate-Palmolive is placing emphasis on premiumization strategies. This approach aims to:

• Enhance product offerings in higher-value segments
• Improve profit margins
• Differentiate the brand in a competitive market

As Colgate-Palmolive works to overcome the current market challenges, investors and industry observers will be closely monitoring the company's performance in the coming quarters for signs of the anticipated second-half rebound.