Colgate-Palmolive (India) Limited has reported a 5.4% growth in its ad spend during the first quarter of the financial year 2019-20. In the quarter that ended on June 30, the company spent Rs 151.31 crore on advertising compared with Rs 143.51 crore in the corresponding quarter of the previous year.
However, ad spends in this quarter was down 3% from Rs 156.27 crore in the previous quarter. The total ad spend of Colgate-Palmolive (India) in FY19 was Rs 564.71 crore.
The company reported net sales of Rs 1,075.9 crore for the first quarter of FY 2019-20 — an increase of 4% over the same quarter of the previous year, led by a domestic net sales growth of 6%. The net profit after tax for the quarter was Rs 169.1 crore as against the net profit of Rs 189.5 crore for the same quarter of the previous year. Excluding the impact of the exceptional item for the previous year, the net profit after tax increased by 5% in the current year.
In a press statement, Issam Bachaalani, Managing Director at Colgate-Palmolive (India) Ltd., said, “The current quarter saw a moderation in demand impacted by lower than expected growth in the rural markets. We do consider this trend to be temporary and expect a pickup over the coming quarters.”
Bachaalani added, “Despite the moderation, we continue to remain focussed on strengthening the core of our business and investing in our advertising and brand-building activities. Our company in the current quarter reported a domestic sales growth of 6% led by volume growth of 4%. Our EBDITA margins have been higher by 70 bps and net profit after tax (excluding impact of exceptional item) is higher by 5%.”
During this quarter, the company re-launched Colgate Strong Teeth with new Amino Shakti while Colgate Zig Zag Neem was launched with bristles infused with Neem extract at Rs 35. The brand also launched Colgate Super Flexi Virat Pack during the period.