Colgate Palmolive has maintained its leadership position in the key business - oral care products that resulted in higher than expected revenue and volume growth for April-June quarter, though profit and operational performance missed analysts' estimates due to higher advertising expenses. Profit during the quarter
grew by 8.4 percent to Rs 125.7 crore and revenue increased 12.4 percent to Rs 1,149 crore on yearly basis. The company achieved volume growth of 6 percent that was ahead of estimates of 4-5 percent while the domestic growth was 5 percent in Q1FY17. "With volume market share in June 2016 of 55.9 percent for toothpaste and 46.8 percent for toothbrush, the oral care category registered a strong net sales growth of 11 percent in Q1, aided by new products like Colgate Sensitive Clove and Colgate A1 toothbrush," the company said in its filing. Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) increased 3.7 percent to Rs 211.3 crore from Rs 204 crore but margin contracted by 150 basis points to 18.4 percent from 19.9 percent due to higher advertising expenses. According to the average of estimates of analysts polled by CNBC-TV18, profit was estimated at Rs 142 crore on revenue of Rs 1,095 crore for the quarter. At 14:37 hours IST, the scrip of Colgate Palmolive (India) was quoting at Rs 1,015.00, up Rs 57.85, or 6.04 percent amid high volumes on the BSE.
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