On Thursday, Colgate Palmolive (India) announced a 22% increase in second-quarter profits, driven by growing urban demand for premium toothpaste products and encouraging signs of increased consumption in rural areas.
For the quarter ending on September 30, the company’s net profit surged to 3.40 billion rupees ($40.86 million), a significant increase from 2.78 billion rupees in the same period the previous year.
Colgate Palmolive reports 22% year-on-year profit:
Boosted by its core oral care category, sales experienced a 6.1% increase, reaching 14.62 billion rupees.
The emergence of premium oral hygiene products has provided individuals with higher incomes access to superior choices. Simultaneously, rigorous marketing campaigns and expanded distribution networks have heightened demand in rural regions.
“In this quarter we have doubled down on the (flagship) Colgate Strong Teeth (toothpaste) relaunch, expanding reach and availability,” Colgate Palmolive (India) CEO Prabha Narasimhan said in a statement.
Just last week, competitor Hindustan Unilever unveiled a profit increase that exceeded expectations, thanks to a surge in sales within its beauty, home, and personal care divisions.
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Colgate Palmolive (India), known for its production of handwash and shower gel in addition to other products, announced its inaugural interim dividend of 22 rupees per share for the fiscal year 2023-2024.
On Thursday, the company’s shares dipped by 1.9% in anticipation of its results. However, the stock has exhibited a 32.4% increase this year, outperforming the Nifty index for fast-moving consumer goods, which saw a 15.3% gain.
