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Colgate-Palmolive posts muted growth in Q1FY19 ad spend

The company spent Rs 143.51 crore on advertisements compared to Rs 143.35 crore in the corresponding quarter of previous year

Colgate-Palmolive has reported muted growth in its ad spend for the first quarter of financial year 2018-19. The FMCG major spent Rs 143.51 crore or 13.9% of its net sales in the quarter ending June 30, 2018, 0.1% up from Rs 143.35 crore in the corresponding quarter of previous year. The company had spent Rs 143.55 crore in Q4FY18.

Colgate-Palmolive reported net sales of Rs 1,033.5 crore for the first quarter of the financial year 2018-19, an increase of 7% (on adjusted basis*) over the same quarter of the previous year.

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Reported net profit after tax for the quarter was Rs 189.5 crore, including an exceptional item of Rs 34.1 crore. Excluding the exceptional item, net profit after tax increased by 20%.

The company had reported a profit of Rs 136.38 crore for the corresponding quarter of last year.

The profit was driven by an improvement in operating margins, led by lower raw material prices and aggressive cost reduction measures.

Issam Bachaalani, Managing Director at Colgate-Palmolive (India) Ltd., said, “Colgate continued its volume growth momentum despite a high level of competitive intensity. The company registered volume growth of 4% in the first quarter with strong performance in the naturals portfolio by Colgate Swarna Vedshakti toothpaste and also our key brands, namely Colgate Strong Teeth with Cavity Protection and Colgate MaxFresh toothpastes and Colgate Super Flexi and Colgate ZigZag toothbrushes. The company continued its leadership positions in the toothpaste category with a volume market share of 52.4% (January-June ’18) and in the toothbrush category with a volume market share of 44.6% (January-June ’18).

The launch of Colgate Swarna Vedshakti, the latest addition to the company's naturals portfolio launched last year, has received an encouraging response from our consumers with strong repeat purchases. We will now take it to additional geographies across the country with multiple pack sizes at different price points.

The company’s continued efforts and focussed programmes to enhance efficiencies and reduce costs have enabled it to maintain margins and fund investments in strengthening brand equity. The company will continue to deliver innovation and invest in advertising to build its brands in order to drive growth.

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