NewsEarningsColgate-Palmolive Q2 Results: Net Sales Down 6.3% YoY, Declares Rs 24 Interim DividendColgate-Palmolive Q2 Results: Net Sales Down 6.3% YoY, Declares Rs 24 Interim Dividend
Colgate-Palmolive India's Q2 FY24 results show net sales of Rs 1,507 crore, down 6.3% year-on-year but up 6.1% sequentially. Net profit after tax was Rs 328 crore, a 17% decrease from the previous year. Excluding one-time impacts, profit declined by 7.2%. The company faced challenges due to GST rate revisions on oral care products. Despite this, it reported strong growth in premium products and launched new initiatives. A first interim dividend of Rs 24 per share was declared.
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Colgate-Palmolive (India) Limited has announced its financial results for the second quarter ended September 30, revealing a year-on-year decline in net sales but sequential growth over the previous quarter.
Key Highlights
- Net sales for Q2 stood at Rs 1,507 crore, down 6.3% from Rs 1,609 crore in the same quarter of the previous year
- Sequential growth of 6.1% in net sales compared to Rs 1,421 crore in the previous quarter
- Net profit after tax at Rs 328 crore, compared to Rs 395 crore in the same period last year
- Excluding one-time impact of interest on tax refund in the base year, profit declined by 7.2%
- First Interim Dividend of Rs 24 per share declared
Financial Performance
The company faced a challenging quarter, with net sales decreasing by 6.3% year-on-year. However, it managed to achieve a sequential growth of 6.1% compared to the previous quarter. The decline in profit, after adjusting for the one-time impact in the base year, was 7.2%.
| Particulars | Q2 Current | Q2 Previous | YoY Change |
|---|---|---|---|
| Net Sales | 1,507 Cr | 1,609 Cr | -6.3% |
| Net Profit | 328 Cr | 395 Cr | -17.0% |
GST Impact and Market Dynamics
Ms. Prabha Narasimhan, Managing Director & CEO, highlighted that the quarter was impacted by GST rate revisions on the company's oral care portfolio, which was reduced from 18% to 5%. While this move is expected to boost consumer confidence and prioritize oral health, it led to transitory disruptions in distribution channels.
Strategic Focus and Product Innovations
Despite the topline headwinds, Colgate-Palmolive remains committed to its long-term strategic goals and continues to prioritize brand investments. The company reported:
- Strong growth momentum in the premium portfolio, led by Colgate Visible White Purple
- Introduction of Palmolive's new Moments body wash range with natural extracts and patented fragrance technologies
- Launch of the "CAVITY-PROOF" campaign under the Colgate Strong Teeth brand, emphasizing 24-hour non-stop anti-cavity protection
Dividend Announcement
The Board of Directors has declared a First Interim Dividend of Rs 24 per equity share. The total dividend payout will amount to Rs 652.8 crore, to be paid from November 19 to eligible shareholders.
Outlook
While the company faced a tough quarter due to GST-led disruptions and a high growth base in the previous year, management expects a gradual recovery in performance in the second half of the fiscal year. The company's margin profile remains resilient, driven by a strong focus on executing its Funding The Growth program.
Colgate-Palmolive continues to emphasize its commitment to sustainability and community well-being, with ongoing efforts to reduce plastic waste, promote recyclability, and conserve water and energy across its operations and in the communities it serves.
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