Latest news with #ColgateKidsSqueezyToothpaste
Mint
23-07-2025
- Business
- Mint
Languishing Colgate stock needs faster growth. What is stopping that?
Colgate Palmolive (India) Ltd's shares plunged to a new 52-week low of ₹2,291 apiece on Wednesday after analysts slashed their earnings estimates following miserable June quarter results (Q1FY26) and dull near-term growth prospects. So, what is the oral care company's problem? It is simple. The base is high, especially after a strong show in the first half of FY25 when total operating revenue growth was 11.5% year-on-year. While this was expected to cap growth to an extent this year, the 4% drop in Q1FY26 revenue to ₹1,434 crore is worse than anticipated. In Q1FY25, revenue growth was 13%. Colgate said it faced persistent headwinds last quarter owing to subdued urban demand and elevated competition intensity. Q1's key disappointing factor was the volume decline. 'Colgate's toothpaste volumes declined by about 3-4% year-on-year (by our estimate), versus our expectation of flat growth," said a Nomura Research report on 22 July. As per Colgate, its premium portfolio delivered strong revenue growth in Q1FY26. This suggests pressure was largely seen in the mass segment. New launches remain a focus area. It launched Colgate Kids Squeezy Toothpaste in two flavours in Q1FY26 and MaxFresh Mouthwash Sachet Stick in fresh tea flavour. Still, a combination of weak sales, high raw material expenses and staff costs meant Ebitda dropped 11% year-on-year, faster than the drop in revenue, to ₹452.5 crore. The upshot: Ebitda margin dipped 241 basis points to 31.6%. To be sure, an immediate pick-up in growth appears tough amid stiff competition and sustained tepid urban demand. A high base for Q2 can put pressure on growth in the current quarter, post which an improvement can be expected as the base becomes more favourable. Nomura expects Colgate to see recovery in sales and margins from the second half of FY26, although it maintains its 'reduce' rating on the stock, forecasting only a 7.7% earnings per share (EPS) CAGR over FY26-28, which is at the low end of the range for the broking firm's coverage universe. Given this, it doesn't help that Colgate's valuations are steep, with the shares trading at about 43 times estimated FY26 earnings, as per Bloomberg. The stock is already derated, and requires growth pick-up or else it will likely remain range-bound, said a Jefferies India report on 22 July. The broking firm has cut its EPS estimates by 6-7%, mainly to factor in the continued moderation in growth. Thus, tracking volume performance is crucial hereon.
Business Standard
22-07-2025
- Business
- Business Standard
Colgate Q1 PAT slumps 12% YoY to Rs 321 cr
Colgate Palmolive (India) reported 11.91% decline in standalone net profit to Rs 320.62 crore on 4.38% fall in revenue from operations to Rs 1,420.64 crore in Q1 FY26 over Q1 FY25. Profit before tax (PBT) dropped 11.71% to Rs 431.95 crore in Q1 FY26 as against Rs 489.25 crore posted in same quarter last year. Total expenses fell 1.05% to Rs 1,020.05 crore in Q1 FY26 compared with Rs 1,030.86 crore in Q1 FY25. The company said that doubling down on innovation this quarter, it introduced two new innovative formats under its Kids and Mouthwash portfolios. For children aged 3-6, it launched Colgate Kids Squeezy Toothpaste in Strawberry and Watermelon flavors. Its easy-to-squeeze bottle and fun grip are ideal for small hands. It also launched MaxFresh Mouthwash Sachet Stick in Fresh Tea Flavor, catering to on-the-go freshness needs. Prabha Narasimhan, managing director & CEO of Colgate-Palmolive (India), said, Our Q1 results reflect persistent headwinds from tough operating conditions on account of subdued urban demand and elevated competition intensity. The current quarter performance is also influenced by cycling a high base from the previous year; Net Sales grew at 12% CAGR in the base year same period (Q1 FY23-Q1 FY25). We continued to work towards execution of our strategic priorities. We have made good strides in category premiumization, with our premium portfolio delivering strong revenue growth. We also prioritized brand investment, leveraging our healthy profit margins. We expect to navigate the current challenges and anticipate a gradual recovery in the back half of the year." Colgate-Palmolive (India) provides oral care products under the Colgate brand. It also provides personal care products under the 'Palmolive' brand name. The counter rose 0.31% to Rs 2400 on the BSE.
Mint
22-07-2025
- Business
- Mint
Colgate Palmolive Q1 results: Net profit declines 12% YoY to ₹321 crore, net sales down 4%
Colgate Palmolive India, on Tuesday, July 22, announced its quarterly financial results for the period ending on June 30, 2025. The company reported a 11.8 per cent year-on-year (YoY) decline in its net profit to ₹ 321 crore, as compared to ₹ 364 crore for the same period last year. Meanwhile, net sales also fell over 4.4 per cent from ₹ 1,421 crore for the quarter ended June 30, 2025, as compared to ₹ 1,486 crore for the same period last year. Revenue from operations also fell 4.3 per cent for the recent quarter, with total income falling to ₹ 1,433 crore compared to ₹ 1,496.71 crore in the corresponding period last year. The company's operating margin declined to 31.6% in the current year, compared to 34 per cent in the previous year, indicating a contraction of 240 basis points. EBITDA declined by 11 per cent to ₹ 453 crore in the June quarter, compared to ₹ 508.34 crore in the corresponding period last year. 'Our Q1 results reflect persistent headwinds from tough operating conditions on account of subdued urban demand and elevated competition intensity. The current quarter performance is also influenced by cycling a high base from the previous year; Net Sales grew at 12% CAGR in the base year same period (Q1 FY23-Q1 FY25). We continued to work towards execution of our strategic priorities. We have made good strides in category premiumization, with our premium portfolio delivering strong revenue growth. We also prioritized brand investment, leveraging our healthy profit margins. We expect to navigate the current challenges and anticipate a gradual recovery in the back half of the year," said Prabha Narasimhan, Managing Director & CEO of Colgate-Palmolive (India) Limited. Narsimhan further added, ' Doubling down on innovation this quarter, we introduced two new innovative formats under our Kids and Mouthwash portfolios. For children aged 3-6, we launched Colgate Kids Squeezy Toothpaste in Strawberry and Watermelon flavors. Its easy-to-squeeze bottle and fun grip are ideal for small hands. We also launched MaxFresh Mouthwash Sachet Stick in Fresh Tea Flavor, catering to on-the-go freshness needs.'
Mint
22-07-2025
- Business
- Mint
Colgate Palmolive Q1 results: Net profit declines 12% YoY to ₹321 crore, net sales down 4%
Colgate Palmolive India, on Tuesday, July 22, announced its quarterly financial results for the period ending on June 30, 2025. The company reported a 11.8 per cent year-on-year (YoY) decline in its net profit to ₹ 321 crore, as compared to ₹ 364 crore for the same period last year. Meanwhile, net sales also fell over 4.4 per cent from ₹ 1,421 crore for the quarter ended June 30, 2025, as compared to ₹ 1,486 crore for the same period last year. Total income also slided over 4.5 per cent to ₹ 1,452 crore for the quarter FY26 from ₹ 1,520 crore same period a year ago. 'Our Q1 results reflect persistent headwinds from tough operating conditions on account of subdued urban demand and elevated competition intensity. The current quarter performance is also influenced by cycling a high base from the previous year; Net Sales grew at 12% CAGR in the base year same period (Q1 FY23-Q1 FY25). We continued to work towards execution of our strategic priorities. We have made good strides in category premiumization, with our premium portfolio delivering strong revenue growth. We also prioritized brand investment, leveraging our healthy profit margins. We expect to navigate the current challenges and anticipate a gradual recovery in the back half of the year," said Prabha Narasimhan, Managing Director & CEO of Colgate-Palmolive (India) Limited. Narsimhan further added, ' Doubling down on innovation this quarter, we introduced two new innovative formats under our Kids and Mouthwash portfolios. For children aged 3-6, we launched Colgate Kids Squeezy Toothpaste in Strawberry and Watermelon flavors. Its easy-to-squeeze bottle and fun grip are ideal for small hands. We also launched MaxFresh Mouthwash Sachet Stick in Fresh Tea Flavor, catering to on-the-go freshness needs.' Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
