Colgate-Palmolive’s adex rises 17.8% to Rs 242.72 crore in Q2 FY2025

New Delhi: FMCG major Colgate-Palmolive India reported an increase of 17.8% in advertising expenses to Rs 242.72 crore in Q2 of FY2025 from Rs 205.99 crore in the corresponding quarter of the previous year. 

On a quarterly basis, Colgate-Palmolive’s adex rose 21.9%. It spent Rs 199.07 crore in Q1 FY2025. 

The FMCG company’s adex rose by 14.06% to Rs 441.79 crore from Rs 387.30 crore it spent in H1 FY2024. 

The company also reported an increase of 16.17% in its net profit at Rs 395.05 crore in the quarter that ended September 2024, led by broad-based growth across portfolios.

The oral hygiene product maker had posted a net profit of Rs 340.05 crore in the July-September quarter a year ago, according to a regulatory filing by Colgate-Palmolive India Ltd (CPIL).

MD and CEO Prabha Narasimhan said CPIL had a consistent topline performance in a tough operating environment.

"This has been led by broad-based growth across portfolios. Toothpaste achieved high-single-digit volume growth on the back of our core brands—Colgate Maxfresh and Colgate Strong Teeth," she said.

Toothbrush continued to grow at double digits with rapid premiumisation.

"We expect continued difficult market conditions but remain committed to leveraging our very strong P&L, which allows us to continue to invest behind superior products and advertising while we maintain our focus on ensuring better oral health for everyone in India," Narasimhan added.

The profit growth of 16% in Q2 FY25 also "includes one-off credit related to interest on income tax refunds received during the quarter," said CPIL in its earnings statement. "Advertising spending increased by 17.8% in the current (July-September) quarter as compared to the same period last year, with increased support behind both brand and category development actions. At the same time, the company increased the investment behind delivering perceivedly superior products to consumers," it added.

Its sales were up 10.04% to Rs 1,609.21 crore during the quarter under review. It was at Rs 1,462.38 crore in the corresponding period a year ago.

Total expenses of CPIL in the latest September quarter were up 13.6% year on year to Rs 1,695.09 crore.

The company's total income, including other income, was Rs 1,164.64 crore, up 12.60% annually.