Colgate-Palmolive (India) post Rs 200 cr in ad expenses, down 2% YoY

Colgate-Palmolive (India) Limited announced its financial results for the third quarter and nine months of the fiscal year 2024-25. The company reported net sales of Rs. 1,452 crore for the quarter ending December 31, 2024, reflecting a growth of 4.7% year-on-year. For the nine months, net sales grew by 9.2% year-on-year, reaching Rs. 4,547 crore compared to Rs. 4,164 crore for the same period last year.

Regarding profitability, Colgate-Palmolive saw sequential improvement in both gross margin and EBITDA margin over the previous quarter, although these figures were down from the high base of the previous year. The net profit after tax for the quarter stood at Rs. 322.8 crore, compared to Rs. 330.1 crore in the same period last year, witnessing a dip of 2.21%. For the nine months, net profit after tax increased by 14.6% year-on-year, reaching Rs. 1,081.8 crore, compared to Rs. 943.8 crore for the same period last year.

Ad expenses reduced from Rs 204 crore year-on-year to Rs 200 crore in the quarter ended December 2024, seeing a 1.96% dip. 

Prabha Narasimhan, Managing Director & CEO of Colgate-Palmolive (India) Limited, shared that the quarter had seen relatively soft demand, particularly in the urban market. Despite these challenging market conditions and increased competition, the company delivered resilient performance, with toothpaste showing mid-single digit intrinsic volume growth and continued growth in toothbrush sales. The premium portfolio saw positive momentum, driven by science-backed innovations, and the margin profile remained healthy. Narasimhan emphasized the company's focus on driving growth despite the challenging near-term macro environment.

Additionally, Colgate-Palmolive strengthened its commitment to enhancing India’s oral health by launching the Oral Health Movement, the largest oral health initiative in India. This consumer-focused, tech-driven initiative offers personalized, AI-generated dental screening reports, followed by recommendations and connections to free checkups at nearby dentists, in partnership with the Indian Dental Association (IDA). The initiative is available in nine leading Indian languages, and participants can access the service by scanning the QR code on recent Colgate product packs.