Key Highlights:
- Net profit declined 11.8 percent YoY to Rs 321 crore.
- Operating margin fell by 240 basis points to 31.6 percent.
- New launches include kids’ toothpaste and mouthwash sachets.
Mumbai: Colgate-Palmolive India reported a disappointing performance for the first quarter of the financial year 2025-26 (Q1 FY26), with both profits and revenues registering a year-on-year decline. The company's net profit fell 11.8 per cent to Rs 321 crore, compared to Rs 364 crore in the same quarter of the previous fiscal (Q1 FY25), according to its filing with the stock exchange.
The downturn in performance was also reflected in the company’s top line. Net sales for the April-June quarter dropped 4.4 per cent to Rs 1,421 crore from Rs 1,486 crore in the previous year. Revenue from operations declined by 4.3 per cent, reaching Rs 1,433 crore, down from Rs 1,496.71 crore a year earlier.
Operating margins contracted significantly, falling by 240 basis points to 31.6 per cent from 34 per cent in Q1 FY25. The company's EBITDA also saw an 11 per cent drop, coming in at Rs 453 crore compared to Rs 508.34 crore in the corresponding quarter of the previous fiscal.
Prabha Narasimhan, Managing Director and CEO of Colgate-Palmolive India, attributed the weak financial performance to sluggish urban demand and intensifying competition. She also noted that the results were impacted by a high base effect, given the company's strong performance in the same quarter last year, when net sales had grown at a compound annual growth rate (CAGR) of 12 per cent between Q1 FY23 and Q1 FY25.
Despite the headwinds, Narasimhan emphasized the company’s continued focus on long-term strategic priorities. “We have continued to invest in building our brand and innovating our product portfolio,” she said. According to her, the company made notable gains in the premium category, which experienced robust revenue growth during the quarter.
Colgate-Palmolive India also launched several new products to strengthen its market presence and tap into evolving consumer needs. These included the Colgate Kids Squeezy Toothpaste in strawberry and watermelon flavours, catering to children aged 3 to 6, and the MaxFresh Mouthwash Sachet Stick in a unique Fresh Tea flavour, aimed at on-the-go consumers looking for instant freshness.
Looking ahead, Narasimhan remained cautiously optimistic, expressing confidence that market conditions will improve in the second half of the financial year. She reiterated the company's commitment to its growth strategy through brand investments and innovation.
(With IANS Inputs)
