Colgate-Palmolive Q4 Results: Net Profit Climbs 20% To Rs 379 Crore; Dividend Announced

Colgate-Palmolive India reported on Tuesday that its consolidated net profit jumped 20% to Rs 379.82 crore in its fourth-quarter results for the fiscal year 2023-24.

Total sales for the quarter stood at Rs 1,480.66 crore, reflecting a significant increase of 10.35 percent year-on-year. This remarkable growth underscores the company's strong position in the market and its ability to capitalise on evolving consumer trends.

One of the key highlights of the quarter was the substantial improvement in earnings before interest, tax, depreciation, and amortisation (EBIDTA), which reached Rs 532 crore, representing a robust growth of 17.7 percent.

Furthermore, Colgate-Palmolive India's EBITDA margins saw a notable enhancement, expanding by 220 basis points year-on-year to 35.7%.

In a move to reward shareholders for the company's outstanding performance, the board announced a second interim dividend of Rs 26 per share, along with a special one-time interim dividend of Rs 10 per share. This decision reflects the management's confidence in the company's financial health and growth prospects.

The total dividend payout to shareholders is slated to amount to Rs 979.2 crore, underscoring the company's commitment to delivering value to its investors. Shareholders listed on the company's Register of Members as of May 23, 2024, can expect to receive the dividends on or after June 7, 2024.

Notably, the dividend for the fiscal year 2023-24 stands at Rs 58 per share.

"At the end of the last quarter of FY24, we are pleased with the all-round progress we have made on our strategic priorities. We have doubled down on driving our mission of better oral health for everyone in India with a renewed focus on Brushing at Night, including an innovative communication tie-up with IPL, and further expanded our flagship school oral health programme, Colgate Bright Smiles, Bright Futures®, which reached 5.2 million children in the year," Prabha Narasimhan, CEO of Colgate-Palmolive, said in a statement.

Key Notes:

Sales, net of GST, for the quarter ending March 31, 2024, surged by 10.4%, while for the entire fiscal year, they increased by 8.8% compared to the corresponding periods of the previous year.

The Exceptional Item for the quarter ended March 31, 2024, includes severance and related expenses, amounting to Rs. Nil, a significant decrease from Rs. 187 Lakhs recorded in the same quarter of the previous year. For the year ended March 31, 2024, the Exceptional Item totaled Rs. 1,950 Lakhs, rising from Rs. 1,121 Lakhs in the previous year.

On May 14, 2024, the company declared a Second Interim dividend of Rs. 26/- per share, along with a one-time special interim dividend of Rs 10/- per share, totaling Rs. 97,915 Lakhs for FY 2023-24. The First Interim Dividend of Rs. 22/- per share, totaling Rs. 59,837 Lakhs for the FY 2023-24, was declared earlier on October 26, 2023, and was paid on and from November 21, 2023.

The company has identified 'Personal Care (including Oral Care)' as its only primary reportable segment in accordance with the requirements of Ind AS 108, 'Operating Segments'. Therefore, no separate segment information has been provided.

The figures for the last quarter represent the balancing figures between audited figures for the full financial year and the published year-to-date figures up to the third quarter of the respective financial year, which underwent limited review.

Previous period/year figures have been reclassified, as considered necessary, to conform with the current period/year presentation, where applicable.

The company's commitment to innovation and product excellence was evident through initiatives such as the enhancement of Colgate Active Salt's formula and the introduction of a more affordable 80-gramme pack for its flagship toothpaste, Colgate Total.

Additionally, new fragrances were introduced for Palmolive body wash, catering to evolving consumer preferences.

Despite challenges, Colgate-Palmolive India's rural sales outpaced urban sales, while its performance in modern trade and e-commerce channels remained strong.

The company's margins remained robust, thanks to its effective 'Funding the Growth' programme.

Colgate-Palmolive India remains optimistic about market recovery, bolstered by its strong brand equity and innovative product offerings, such as the Tooth Whitening Booster in the Visible White Range. With a focus on driving growth and delivering value to stakeholders, the company is poised for continued success in the dynamic Indian market.