FMCG major Colgate-Palmolive India has reported a 8.47 per cent rise in net profit to Rs 136.38 crore for the first quarter ended June 30.
According to a PTI report: The company had posted a net profit at Rs 125.72 crore during the same period previous fiscal, the oral care products maker said in a BSE filing.
Net sales during the quarter under review, however, declined to Rs 1,109.88 crore as against Rs 1,141.54 crore in the April-June quarter last fiscal, down 2.77 per cent.
The company said the decline in sales was “largely due to destocking in the trade channel ahead of the implementation of GST.”
Colgate-Palmolive India enjoys leadership position in both the toothpaste and toothbrush categories, with volume market shares at 54.3 per cent and 45 per cent, respectively, in Q1 2017-18.
“Despite the transition challenges leading to softness in sales, we are pleased to report an 8 per cent increase in profits, margin expansion of 50 bps and EBITDA by 150 bps,” Managing Director, Colgate-Palmolive (India), Issam Bachaalani told PTI.
Total expenses during the period stood at Rs 934.03 crore compared to Rs 969.46 crore in the year ago period.
“GST has enabled us to pass on the benefits to our consumers leading to a reduction in MRPs by 8 to 9 per cent for our key categories of toothpastes and toothbrushes,” Bachaalani further told PTI.