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Colgate-Palmolive (NYSE:) (India) has reported a significant 22% surge in its Q2 net profit, reaching INR 340 crores. The rise in profits was primarily driven by the affluent urban demand for premium toothpastes and an increase in rural consumption, facilitated by expanded distribution and marketing efforts.
Sales for the company saw a 6.1% increase, amounting to INR 1,462 crore. The growth in sales was mainly attributed to the oral care products like the expanded Colgate Strong Teeth line. While the firm is also known for its handwash and shower gel products, it seems that the oral care products have contributed significantly to its financial performance.
Despite these impressive gains, shares of Colgate-Palmolive (India) dipped by 1.9% on Thursday. However, it’s worth noting that the company’s shares have seen a strong upward trend this year with a 32.4% rise. This is more than double the 15.3% rise observed in the Nifty FMCG index.
In addition to its financial results, Colgate-Palmolive (India) also announced its first interim dividend of INR 22 per share for FY23-24. This move indicates the company’s confidence in its financial position and future growth prospects.
In related news, Hindustan Unilever (LON:) also reported a significant boost in profits, with notable contributions from its beauty, home, and personal care segments.
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