Colgate’s adex rise by 9.79% (YoY) to Rs 199.07 crore in Q1 FY2025

New Delhi: Colgate-Palmolive recorded an increase in advertising spending of 9.79% in the first quarter of FY2025 as compared to the previous year's corresponding quarter, said the company in a BSE filing.

In Q1, it spent Rs 199.07 crore on ads in comparison to Rs 181.31 crore in the June 2024 quarter.

On a QoQ basis, the company’s adex increased by 17.88%. It had spent Rs 168.87 crore in Q4 FY2024. 

Colgate Palmolive’s net profit after tax increased to Rs 364.0 crore from Rs 273.7 crore, a growth of 33.0% YoY for the quarter. “Excluding the impact of exceptional items in the prior year, the net profit after tax grew by 26.3% year-on-year,” shared the FMCG major in a filing.

Colgate-Palmolive (India) delivered 13.0% year-on-year topline growth for the quarter ended June 30, 2024. Net Sales increased to Rs 1,485.8 crore from Rs 1,314.7 crore. 

The quarter witnessed continued demand pickup in rural markets outpacing growth in urban markets for the second quarter in a row, said the company. 

The toothbrush and personal care, domestic revenues grew by 12.8% year-on-year for the quarter.

In a statement, the company said that it will continue to focus on category development through ‘Brush Twice A Day’ campaign.

Prabha Narasimhan, Managing Director and CEO of Colgate-Palmolive (India) said, “We are happy to report another quarter of strong and consistent performance led by robust topline growth across the portfolio and continued strengthening of competitive performance. Our toothpaste portfolio witnessed double-digit growth driven by high-single-digit volume growth.”

She added, “Our continued investments in perceivable superiority in product, brand building and innovation are yielding significant results while strengthening our brand metrics to highest-ever levels. In this quarter, our Toothbrush portfolio has also seen a concrete positive shift in competitive growth trajectory with strong double-digit growth in topline.” 

Narasimhan asserted that the company’s EBITDA margins remained consistent despite the higher investment in advertising, which increased by 10% YoY.

According to the company’s Annual & ESG Report 2023 - 2024, 50% of Colgate’s Toothpaste portfolio (by volume) has transitioned to recyclable tubes, and Colgate-Palmolive India is on track to exit FY 2024-25 with 100% recyclability. 

“The company is well on its way to reach 100% reusable, recyclable, or compostable plastic packaging by 2025, with 83% already achieved,” it added.