Colgate-Palmolive (India) Limited has announced its financial results for the fourth quarter of fiscal year 2025, revealing a 6% decline in net profit, which settled at ₹355 crore. This decrease is primarily attributed to reduced sales during the same period. Despite the profit dip, the company's performance met analysts' estimates.
The company's revenue for the quarter stood at ₹1,462 crore, a 1.9% decrease compared to the ₹1,490 crore recorded in the corresponding quarter of the previous year. However, this figure was slightly below the Bloomberg estimate of ₹1,522 crore. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also experienced a downturn, falling by 6.4% to ₹498.1 crore, against ₹532.2 crore in the prior year. The EBITDA margin was 34.1%, compared to 35.7% in the same period last year.
Despite the challenges in Q4, Colgate-Palmolive (India) showcased overall growth for the entire fiscal year 2025. The company reported net sales of ₹5,999 crore, marking a 6.3% increase compared to ₹5,644 crore in the previous fiscal year. The net profit after tax for the full year rose by 8.5% to ₹1,437 crore, up from ₹1,324 crore in the preceding year.
In light of these results, the Board has declared a second interim dividend of ₹27 per equity share (Re 1 each) for the financial year 2024-25. The record date for determining shareholders eligible for the dividend payout has been set as May 28, 2025, and the dividend will be distributed on and from June 16, 2025. This dividend follows the first interim dividend of ₹24 per share, which was declared on October 24, 2024, and paid on and from November 21, 2024. With the second interim dividend, the total dividend payout for FY25 amounts to ₹51 per share. This decision underscores the company's commitment to rewarding its shareholders, even amidst a challenging quarter.
Prabha Narasimhan, Managing Director & CEO of Colgate-Palmolive (India) Limited, commented on the annual performance, noting the 6.3% year-on-year increase in topline revenue, driven primarily by mid-single-digit value growth in the toothpaste segment. She acknowledged the challenging operating environment in the second half of the year, which was impacted by softening urban demand and increased competition. However, Ms. Narasimhan expressed confidence in the company's strategic priorities and highlighted the robust growth in the toothbrush portfolio. The company's healthy margin profile, supported by the "Funding The Growth" program, allows for continued reinvestment in the business.
Looking ahead, Colgate-Palmolive (India) anticipates ongoing macroeconomic headwinds but expects a gradual recovery in market conditions during the latter part of the year. The company remains focused on innovation and product superiority, as demonstrated by the relaunch of Colgate Strong Teeth toothpaste with Arginine technology, promising to make teeth two times stronger. The introduction of Colgate Total Plaque Release toothpaste, featuring advanced Amino foam and Zinc technology, further exemplifies this commitment.
In November 2024, Colgate-Palmolive (India) launched the nationwide Oral Health Movement (OHM), leveraging digital innovation to provide free dental screenings using an AI-powered tool. This initiative has reached 4.5 million people, aligning with the company's commitment to improving oral health in India.
On the National Stock Exchange (NSE), Colgate-Palmolive (India) shares closed 1.16% higher at ₹2,660 apiece ahead of the results, compared to a 0.52% advance in the benchmark Nifty 50. The company's stock reflects a mix of investor sentiments, with ratings distributed as 9 "buy," 13 "hold," and 12 "sell."
