Colgate–Palmolive (India) has reported its financial performance for the second quarter of the fiscal year 2024-25, revealing significant increases in advertising and sales promotion expenses. For the quarter ending September 2024, the company’s spending in this area surged by 21.93% from the previous quarter, reaching ₹242.72 crore, compared to ₹199.07 crore in the prior quarter. Year-over-year, this represents a 17.85% rise from ₹205.99 crore during the same period last year.
The company’s net sales for the quarter ended September 30, 2024, exhibited a year-on-year growth of 10.0%, with domestic revenues increasing by 10.5%. Total net sales climbed to ₹1,609.2 crore, up from ₹1,462.4 crore, as all segments of the product portfolio displayed strong, consistent growth.
Colgate recorded a net profit after tax of ₹395.1 crore in Q2 FY25, compared to ₹340.1 crore in the same quarter of FY24, marking a growth of 16.2%. This figure includes a one-time credit linked to income tax refunds received during the quarter. Advertising expenditures grew by 17.8% in this quarter relative to the same timeframe last year, reflecting increased investment in both brand and category development initiatives. The company also focused on enhancing its product offerings for consumers.
Prabha Narasimhan, Managing Director and CEO of Colgate-Palmolive (India), expressed satisfaction with the company’s strong and steady topline performance despite challenging market conditions. She highlighted that the growth was driven by widespread progress across various product lines, noting that toothpaste sales experienced high single-digit volume growth, fueled by popular brands such as Colgate Maxfresh and Colgate Strong Teeth. Toothbrush sales also showed double-digit growth, benefiting from a trend toward premium products.
Narasimhan acknowledged the ongoing market challenges but reiterated the company’s commitment to leveraging its robust profit and loss (P&L) position to continue investing in superior products and advertising while prioritizing improved oral health for all in India.
“This quarter was marked by significant innovation with the introduction of Colgate Visible White Purple, which leverages color theory and enhances our whitening product line. The initial customer response has been very positive. Additionally, we launched new campaigns for our flagship global product, Colgate Total. Featuring patented Dual Zinc and Arginine Technology, Colgate Total provides exceptional everyday protection and is central to our premiumization strategy. The new advertising for Colgate Strong Teeth addresses the contemporary issue of increased snacking leading to calcium loss, emphasizing the product’s arginine + calcium boost to replenish that lost calcium,” she added.