FMCG major Colgate-Palmolive India Ltd (CPIL) on Monday reported 10.76 per cent year-on-year decline in its net profit at Rs 169.11 crore for the first quarter ended June 30, 2019, dented by muted demand.
"The company had posted net profit of Rs 189.51 crore in the April-June quarter last fiscal," CPIL said in a filing to the Bombay Stock Exchange.
The Mumbai-based oral care product maker's net sales, however, rose by 4 per cent to Rs 1,076 crore from Rs 1,033.55 crore in the year ago quarter.
Colgate-Palmolive's earnings before interest, tax, depreciation and amortization (EBITDA) climbed 6.2 per cent to Rs 291 crore from Rs 274 crore in the same quarter last year. The EBIITDA margin or operating profit margin increased by 50 basis points to 27 per cent from 26.50 per cent in the same quarter last year.
Commenting on Q1 numbers, lssam Bachaalani, managing director at Colgate-Palmolive (India) said, "The current quarter saw a moderation in demand impacted by lower than expected growth in the rural markets. We do consider this trend to be temporary and expect a pickup over the coming quarters. Despite the moderation, we continue to remain focussed on strengthening the core of our business and investing in our advertising and brand building activities."
"Under our Keep India Smiling mission to continue to impacting a positive change in people's lives, we recently launched Colgate's Keep India Smiling Foundational Scholarship. The Scholarship program in partnership with Shiksha Daan Foundation, offers financial support and mentorship to people across India in fields of education, sports and community betterment, to help them translate their dreams into reality. We continue to strive to build a future that everyone can smile about," Mr Bachaalani added.
During the quarter under review, the company launched Colgate Strong Teeth, Colgate Zig Zag Neem and Colgate Super Flexi Viraat Pack, it said in the exchange filing.
In a separate filing, Colgate-Palmolive said its board has appointed Ram Raghavan as Managing Director of the company with effect from August 1, 2019.
Shares of Colgate-Palmolive closed trade 3.29 per cent higher at Rs 1,206.10 apiece on BSE. During the day's trade, the stock rose as much 4.55 per cent to hit an intra-day high of Rs 1,220.90.
Edited by Chitranjan Kumar