Colgate Palmolive's ad spends soar 30.18% YoY to Rs 206 crore in Q2FY24

The second quarter of the current fiscal year saw Colgate Palmolive’s spending on advertising going up by 30.18% on a YoY basis to Rs 206 lakhs. In Q2FY23, the FMCG major had spent Rs 181.31 crore on advertising.

On a half-yearly basis too, the conglomerate upped its spending on advertising by 20.56% on a YoY basis as it allocated an ad budget of Rs 387.30 crore in H1FY24 as opposed to Rs 321.24 crore it spent during the first half of the previous fiscal year.

This time around, the Net Profit of Colgate Palmolive stood at Rs 340 crore, which is up 24.25% YoY, when compared to the corresponding quarter of the previous fiscal year wherein it clocked in a sum total of Rs 273.68 crore.

On a half-yearly basis too, the FMCG major’s Net Profit zoomed in by 25.84% YoY as it amassed Rs 613.73 crore in H1FY24 juxtaposed to Rs 487.69 crore it generated during H1FY23.

It is to be noted that the Total Income of Colgate Palmolive during the quarter gone by stood at Rs 149.21 crore which marks an increase of 11.46% on a YoY basis. In the corresponding period of the last fiscal, the same stood at Rs 133.86 crore.

Additionally, the expenses of the conglomerate also increased by 8.83% YoY.

In Q2FY24, Colgate Palmolive spent Rs 103.42 crore on the cost of materials consumed, purchase of stock in trade, changes in inventories, employee benefits expense, finance costs, depreciation and amortisation expense in addition to others including advertising.

However, in the corresponding quarter of the previous fiscal year, it had incurred a total expense of Rs 950.38 crore.

Sharing her views on the quarterly update, Prabha Narasimhan, Managing Director & CEO of Colgate-Palmolive (India) Limited, said, “We continue to be happy with our momentum and continue to be focussed on strengthening our brand portfolio and delivering superior products to consumers.”

“In this quarter we have doubled down on the Colgate Strong Teeth relaunch, expanding reach and availability. This has been further supported by the excellent performance of Colgate Max Fresh, which has been relaunched with the best, proprietary freshness technology. We have also restaged our largest toothbrush franchise, Colgate Zig Zag with a superior mix that focuses on its core equity of deep, interdental cleaning,” she added.

That being said, Narasimhan also pointed out that Colgate Palmolive’s domestic growth remained strong, registering a 6.6% increase over the previous year's quarter, with its toothpaste segment witnessing higher single-digit growth.

“As the market leader, fostering healthy oral care habits among Indians is both our privilege and responsibility. In line with this objective, and our pursuit to elevate India's dental health standards, we have released a film this festive season called 'The Sweet Truth'. The film brings alive the importance of nighttime brushing and we hope this educational message will help in driving the important action of brushing at night and thereby preventing cavities,” she added.

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