Colgate Palmolive’s adex rise 18.17% to Rs 168.87 crore in Q4 of FY2024

Colgate-Palmolive (India) continued to invest in brand building with an increase in advertising spend by 18.17% in the fourth quarter as compared to the previous year quarter, the filing said.

In Q4, it spent Rs 168.87 crore on ads in comparison to Rs 142.90 crore in the March 2023 quarter.

The FMCG company’s adex was up by 19.92% in FY24. It spent Rs 760.42 crore in FY24 on advertising vs Rs 634.07 crore in FY23.

However, on a QoQ basis, the company’s adex reduced by 17.32%. It had spend Rs 204.26 crore in Q3 FY2024. 

The company reported a 20.1% increase in profit after tax (PAT) to Rs 379.8 crore in the March quarter.

The company had posted a PAT of Rs 316.2 crore in the same quarter a year ago, Colgate-Palmolive (India) said in a regulatory filing.

The company's net sales in the quarter under review increased to Rs 1,480.7 crore from Rs 1,341.7 crore in the same period a year ago, it added.

The company maintained sequential growth momentum in the fourth quarter of FY24 on the back of strong performance in toothpaste.

Rural markets continued to exhibit positive signs of demand recovery, growing ahead of urban, the company said.

For the fiscal ended March 31, PAT grew 26.4% year-on-year to Rs 1,323.7 crore from Rs 1,047.1 crore in the previous year, Colgate-Palmolive (India) said.

In FY24 net sales grew 8.8% to Rs 5,644.2 crore from Rs 5,187.9 crore in FY23, it added.

Led by double-digit growth in the toothpaste category, the company delivered domestic growth of 9.5%.

Robust performance in FY24 was achieved through the successful execution of strategic objectives, namely growth acceleration in the core portfolio, premiumisation through science-based innovation, driving category growth in toothbrushes and building the personal care category, it said.

"From a geography lens, our rural business has grown faster than urban and we continue to see strong performance in modern trade and e-commerce platforms," Colgate-Palmolive (India) Managing Director & CEO Prabha Narasimhan said.

On the outlook, Narasimhan said, "In the coming year, we are optimistic about seeing the market recovery, the continued strengthening of our very strong brand and a robust innovation pipeline, starting with a first of its kind 'Tooth Whitening Booster' under the 'Visible White' range." The company's board has declared a second interim dividend of Rs 26 per share of Re 1 each.