Colgate-Palmolive, one of the major fast-moving consumer goods (FMCG) companies in India, announced its earnings for the fourth quarter ended March 2018 and reported a 32.39% increase in net profit to Rs.188.77 crore. The company attributed the increase in profits to various factors such as strong volume growth, soft raw material prices, and lower advertising costs.
Net profit for the fourth quarter increased to Rs.188.77 crore from Rs.142.58 crore reported in the fourth quarter of last year. Though there is a significant increase in net profit, the company’s total income for the quarter declined to Rs.1,100.14 crore from Rs.1,186.03 crore from the same quarter of the previous year.
Net sales of the company increased marginally to Rs.1,085 crore in the fourth quarter of 2018 from Rs.1,027 crore reported in the corresponding quarter of last year. The company also reported operating profit of Rs.307.6 crore compared to Rs.243 crore in the fourth quarter of 2017. For the same period, the company reported volume growth of 4%.
In the toothpaste segment, the company’s market share declined marginally to 53.4% from 53.7% reported in the quarter ended December 2017. In the quarter ended March 2017, the company’s market share in the toothpaste segment stood at 55.1%. In the toothbrush category, the company ended the quarter with a market share of 44.8%.
With the increase in net profit, Colgate-Palmolive declared a dividend of Rs.11 per share for its shareholders. Total dividend for the fiscal year now stands at Rs.24, which includes the Rs.13 dividend declared earlier this year.
Colgate-Palmolive is an FMCG company based in the United States. The company is renowned for its range of personal care products, especially in the oral care segment. In India, it occupies the top position in the toothpaste and toothbrush segments.