Colgate

Colgate-Palmolive (India) sprung a surprise – it recommended a 1:1 bonus; this came in a time when no one was expecting it. Yet the stock price slipped into the red, mainly on the back of the decline in bottomline.

And in terms of performance, for Q1FY16, the company posted an over 5.5% (YoY) rise in net sales at Rs.1003 crore. Phasing out of fiscal benefits in Himachal Pradesh did impact revenue. Advertising costs rose 11%. EBITDA for the quarter rose 5% at Rs.202 crore and margin was flat at 20.14% v/s 20.29%. The company had an exceptional cost of Rs.31.34 crore which was on account of its restructuring cost of its tooth power facility at Aurangabad. Tax liability was a bit lower at Rs.40 crore on account of some tax reversals. After all this, net profit was impacted and it came in at Rs.114 crore, down 15%.

The company continues to retain a market leader position in the toothpaste category with a 57.9% market share, an increase of 90 bps YoY. Flagship brands like “Colgate Dental Cream”, “Active Salt” and “Max Fresh” contributed to the growth. In the toothbrush category too, the company remains a leader with 42.7% market share. It remains a debt free, bankable MNC; a veritable bluest of the blue chips.