FMCG major Colgate-Palmolive (India) Q4 net profit falls 6.5 pc, revenue dips

IANS May 22, 2025 215 views

Colgate-Palmolive India experienced a 6.5% drop in Q4 net profit due to slower urban demand and increased market competition. Despite the quarterly challenges, the company's full-year performance remained strong, with net sales growing 6.3% to Rs 5,999 crore. Managing Director Prabha Narasimhan emphasized the company's commitment to strategic priorities and continued business investment. The company also announced a second interim dividend of Rs 27 per share, demonstrating confidence in its financial strategy.

"Our focus on strategic priorities remains firm" - Prabha Narasimhan, MD & CEO
Mumbai, May 21: Colgate-Palmolive (India) Limited on Wednesday reported a 6.5 per cent decline in its net profit to Rs 355 crore for the fourth quarter ended March 31, compared to Rs 379.8 crore in the same period last fiscal (Q4 FY24).

Key Points

1

Q4 net profit falls to Rs 355 crore amid urban demand slowdown

2

Full year net sales rise 6.3% to Rs 5,999 crore

3

Company maintains strategic investment approach

4

Second interim dividend of Rs 27 per share declared

The drop in profit came as the company faced slower urban demand and increasing competition in the market.

Revenue for the March quarter also dipped slightly, falling 1.9 per cent to Rs 1,462.5 crore from the previous year.

Operating profit, or EBITDA (earnings before interest, taxes, depreciation, and amortisation), stood at Rs 498 crore, down 6.4 per cent from Rs 532.2 crore last financial year.

The company’s EBITDA margin also shrank to 34 per cent, compared to 35.7 per cent in the same quarter a year ago.

Despite the weaker performance in the March quarter, Colgate-Palmolive (India)'s overall financial performance for the full year was positive.

For the financial year 2024–25 (FY25), the company reported a 6.3 per cent increase in net sales to Rs 5,999 crore, compared to Rs 5,644 crore in FY24.

Net profit for the full year rose 8.5 per cent to Rs 1,437 crore, according to its stock exchange filing.

Colgate has declared a second interim dividend of Rs 27 per share, which will be paid from June 16.

This follows the first interim dividend of Rs 24 per share announced in October 2024 and paid in November 2024.

Colgate-Palmolive (India)'s Managing Director and CEO, Prabha Narasimhan, acknowledged that the second half of the year was challenging, especially in urban markets.

She said rising competition also added pressure. However, she emphasised that the company’s focus on strategic priorities remains firm.

She added that their ‘funding the growth’ initiative helped maintain margin strength and that Colgate will continue investing in the business, despite the near-term challenges.

Ahead of the earnings announcement, shares of Colgate-Palmolive (India) closed 1.2 per cent higher at Rs 2,662 on the Bombay Stock Exchange (BSE).

Reader Comments

R
Rahul K.
Not surprised by the dip in urban demand. Many middle-class families are switching to local brands like Dabur Red and Patanjali which offer similar quality at lower prices. Colgate needs to rethink its pricing strategy. 🇮🇳
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Priya M.
The full-year growth is still decent at 6.3%. Every company faces quarterly fluctuations. What matters is they're paying good dividends (Rs 27/share!) and maintaining market leadership. Long-term investors shouldn't worry. 💰
A
Amit S.
As a shareholder, I'm concerned about shrinking margins. 34% EBITDA is still good but the downward trend is worrying. Hope their 'funding the growth' initiative shows results soon. Maybe need more rural focus - that's where real India shops.
S
Sunita R.
Colgate's quality is unmatched but their marketing needs refresh. Seeing more influencer promotions for competitors. Even my kids want those fancy charcoal toothpastes from new brands! 😅 Time for some Gen-Z connect campaigns.
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Vikram J.
Interesting that urban demand is slowing while rural continues to grow. Shows how Bharat is becoming as important as India for FMCG companies. Colgate should double down on their rural distribution network.
N
Neha P.
The 8.5% annual profit growth is actually better than I expected given current market conditions. Shows resilience of this 100+ year old brand in India. Their dividend policy is very shareholder-friendly too. 👍

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Colgate-Palmolive India FMCG Earnings Prabha Narasimhan Q4 Financial Results Stock Market