Prabha Narasimhan, the big shot Managing Director & CEO of Colgate-Palmolive (India) Ltd, saw a bit of a rough patch recently. The fast-moving consumer goods (FMCG) maker took a hit with a 6.33 per cent drop in net profit in Q4, all thanks to the softening urban demand. Revenue from operations didn’t fare much better either, seeing a decline of 1.89 per cent, with a reported ₹1,452 crore in Q4. Despite the struggles, Colgate Palmolive managed to pull in a net profit of ₹355 crore in the same quarter.
Looking at the bigger picture, the company’s net sales for FY25 stood at ₹5,999 crore, a bump up from ₹5,644 crore in the previous year. To sweeten the deal for investors, Colgate Palmolive announced an interim dividend per share of ₹27, totaling up to ₹51 for FY25. With hopes high, the company is eyeing a market recovery across the country in the foreseeable future. Prabha Narasimhan, the top dog at Colgate-Palmolive, expressed optimism despite the challenges faced, highlighting a 6.3 per cent year-on-year increase in revenue in FY25. Toothpaste sales saw mid-single-digit growth, but Q4 took a hit due to softer urban demand and fierce competition.
Shifting gears, Colgate Palmolive has pivoted its marketing and innovation strategy towards science-led, core, and premium innovation. The focus is on expanding brushing occasions to boost consumption and ramping up advertising spending. The toothbrush portfolio saw impressive growth, keeping the margin profile healthy and resilient. The company’s Funding The Growth program played a crucial role in maintaining a solid margin position, allowing for reinvestment in the business. Despite looming macro headwinds in the near term, Prabha Narasimhan sees a silver lining with a gradual market recovery expected in the latter part of the year. So, fingers crossed for brighter days ahead in the FMCG realm.