Oral and personal care product maker Colgate Palmolive India missed street expectations as first quarter net profit fell 17.7% year-on-year to Rs 100.44 crore due to higher advertising and sales expenses and a rise in raw material costs.
The company’s net sales for the April-June quarter were up 15.6% from a year ago to Rs 611.1 crore.
Analysts on an average had expected Colgate’s first quarter net profit at Rs 130 crore on net sales of Rs 619 crore.
There has been fierce competition in the toothpaste category, especially between Colgate and Hindustan Unilever, and that was a major drag on the company’s earnings.
During the three-month period, Colgate’s advertising and sales promotion spends rose 42.3% to Rs 98.79 crore. A near 35% year-on-year increase in raw and packing material costs at Rs 207.78 crore also hurt earnings.
Colgate’s volumes rose 12% year-on-year in April-June, with a 14% growth in toothpastes.
Colgate Palmolive India shares were traded up 1% at Rs 987 on NSE in afternoon trade.
Source: www.moneycontrol.com
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