Colgate’s Premium Smile Shines in Urban Lanes, Margins Hold Their Sparkle

Image Source: Storyboard18

Colgate-Palmolive (India), a leader in oral care, faced a challenging fourth quarter for FY25, with net profit and sales dipping due to subdued urban demand and increased competition. Despite these headwinds, the company’s premium products are gaining ground with affluent urban consumers, and EBITDA margins remain resilient in the low 30% range.

Financial Performance

Net profit for Q4FY25 stood at ₹355 crore, down 6% sequentially from ₹380 crore in the same quarter last year.
Quarterly net sales of ₹1,452 crore fell 1.9% from the previous year
EBITDA was at 34% for the quarter, which is slightly down from 35.7% a year ago but is comfortably within the targeted low 30s.
For the full year FY25, net profit after tax rose 8.5% to ₹1,437 crore, and net sales grew 6.3% to ₹5,999 crore.

Market and Portfolio Insights

The premium product portfolio is seeing strong traction among top-tier urban customers, helping to offset some of the broader urban demand softness.
The company relaunched its flagship Colgate Strong Teeth Toothpaste with enhanced technology and introduced Colgate Total Plaque Release toothpaste, targeting health-conscious consumers.
In the face of a tough macro environment and heightened competition, the toothbrush portfolio of the company registered strong growth.

Margin and Cost Management

Contracting EBITDA margin was due to increased employee costs, rising advertising expenditure, and other costs as a proportion of sales.
The company is still implementing its "Funding The Growth" program, re-investing in business projects to preserve a healthy margin profile.

Strategic Initiatives and Outlook

Colgate-Palmolive (India) launched OHM, the company's first pan-India Oral Health Movement, that accessed 4.5 million people across the country using AI-driven digital screening.
The company continues to focus on its strategic priorities and expects a gradual recovery in market conditions in the latter half of the year while faced with ongoing macro headwinds.

The board declared a second interim dividend of ₹27 per share. On this basis, the total FY25 dividend stands at ₹51 per share.

Relevant Sources: Free Press Journal, Indian Retailer, CNBC TV18, Colgate-Palmolive (India) Investor Relations, Economic Times

Stay Ahead – Explore Now! RCC Cements Ltd Sees CFO Rajesh Kumar Step Down

STORIES YOU MAY LIKE

Image Source: Business Today

India’s Wealth Gap Widens: Finfluencer Flags Middle Class Struggles Amid Asset Boom

Image Source: Business Standard

Battle of the Queens: India vs Australia Women’s World Cup 2025—Where to Catch the Action Live

Image Source: Business Today

Plan Your Pension, Your Way: NPS 2.0 Redefines Retirement Rules

Image Source: Times Of India

Double A, Double Impact: Atlee Promises Allu Arjun–Deepika Film Will Be ‘Addictive’

Image Source: Economic Times

Spirit Airlines Grounds Airbus Deal: Cancels 52 Aircraft Orders in Settlement with AerCap

Image Source: India Today

Travel Green, Live Keen: How to Go Sustainable Without Losing the Spark

Image Source: TheNewViews

Google Opens Doors for Summer 2026 Interns and New Grad PMs: Apply Now for Career-Defining Roles

Top Searches

Suggestions

Colgate’s Premium Smile Shines in Urban Lanes, Margins Hold Their Sparkle

STORIES YOU MAY LIKE

Live Blogs

Top Stories

Colgate’s Premium Smile Shines in Urban Lanes, Margins Hold Their Sparkle

STORIES YOU MAY LIKE

Subscribe to receive the day's headlines from WOWNEWS 24X7 straight in your inbox

Live Blogs

Top Stories