Colgate-Palmolive (India) Ltd has reported a marginal decline in its ad spend in the fourth quarter of the fiscal year 2017-18 while it recorded 3% growth in the entire year.
The FMCG giant spent Rs 143.55 crore on advertising in the quarter ending March 31, 2018 against Rs 144.25 crore in the corresponding quarter last year.
Colgate’s advertising spend for the entire fiscal year was Rs 526.83 crore, 3% up from Rs 511.73 crore in the previous year.
Net Sales on an adjusted basis* were Rs 1,085.1 crore for the quarter ended March 31, 2018, an increase of 5.1% over the same period of the previous year. Net Sales growth was driven by strong volume growth of 4%.
Reported Net profit after tax for the quarter was Rs. 188.7 crore, including tax reversals of Rs 17.79 crore. Excluding the impact of tax reversals and exceptional item, Net profit after tax increased by 25%, mainly driven by strong gross margin expansion of 290 bps on an adjusted basis*.
FY 2017-18: Net Sales on an adjusted basis* for the year ended March 31, 2018 were Rs 4,159.4 crore, an increase of 5.3% over the previous year.
Reported Net profit after tax for the year was Rs 673.4 crore, an increase of 17% over the previous year. Excluding the impact of tax reversals and exceptional item, Net profit after tax for FY 2017-18 increased by 15% over the previous year.
Issam Bachaalani, Managing Director at Colgate-Palmolive (India) Ltd, said, “In the fourth quarter, we delivered strong volume growth of 4% despite a competitive business environment. We remain focussed on driving growth in our key categories and improving gross margins through various funding-the-growth program initiatives to fund continued investments in our brands. We maintained our strong leadership position in both the toothpaste and toothbrush categories in FY 2017-18, with volume market shares for the year at 53.4% and 44.8%, respectively. We are pleased that we were able to drive shareholder value in the quarter while continuing to deliver innovation that meets the needs of our consumers.
A core component of Colgate’s commitment to maximizing shareholder value is maintaining a healthy level of dividend payouts. Considering the Company’s surplus cash position and foreseeable capital requirements, we are pleased to declare a special interim dividend of Rs 11 per share for the financial year 2017-18. Including the earlier dividends declared of Rs 13 per share, the total dividend declared for the year is Rs 24 per share.”
* Net Sales and Gross Margin have been restated for impact of GST.