Oral-care major Colgate-Palmolive
has reported a 21 per cent increase in net profit to
Rs 62.5 crores for 2000-01 compared with Rs 51.8
crores in the previous year. Net sales were up 8.01
per cent to Rs 1,176.9 crores against Rs 1,089.6
crores in 1999-00. The board has raised the dividend
recommendation from 30 per cent to 35 per cent. The
net profit has been aided by a 29 per cent higher
other income, which rose to Rs 29.5 crores.
For the fourth quarter ended March
2001, the company's sales grew by 2.12 per cent to Rs
293 crores compared with Rs 287 crores in the
corresponding period last year.
The company has increased its
advertising expenditure from Rs 194 crores in
1999-2000 to Rs 214 crores in 2000-01.
During the year, cash generation
from operations increased by 110 per cent over the
previous year adding Rs 62 crores to the company's
The company has undertaken a
re-vitalization of its flagship brand, Colgate Dental
Cream. It also launched Colgate Navigator toothbrush
and Palmolive Naturals Transparent Soap, while
Palmolive range of shave preparations was expanded and
Palmolive Charmis Skin Cream repositioned with
Its supply chain initiatives
focused on cost reductions, improving operating
efficiencies and enhancing the technical capability of
key suppliers. These efforts resulted in a significant
reduction in supply chain costs and in working
capital, generating the funds for future growth.