Colgate Palmolive hikes ad spends by 20% despite economic headwinds
The FMCG giant spent Rs 204.26 crore on advertising this year
Colgate-Palmolive (India) Limited (CIPL) posted a 20.2% surge in its ad spends during Q3 FY '24, as compared to Q3 FY'23. During the December quarter of the last fiscal year, the company spent Rs 169.93 crore for advertising, and increased it to Rs 204.26 crore this year.
Colgate-Palmolive (India) Limited reported net sales of Rs. 1,386 crore for the quarter ended December 31, 2023, an increase of 8.2% over the previous year quarter. Domestic growth was reported at 8.8% for the quarter.
The company posted a net profit after tax of Rs 330 crore for the quarter as against Rs 243 crore for the previous year quarter. This was a 35.7% growth for the quarter.
For Q3 FY '24, CPIL’s total expenses amounted to Rs 970.14 crore, which was around Rs 4.61 crore lesser than what it spent during the December quarter of FY’23. The total income reached Rs 1,413.54 crore, reflecting an increase of 8.6% from Rs 1,301.68 crore in Q3 FY'23.
In a press statement, Prabha Narasimhan, Managing Director & CEO of Colgate-Palmolive (India) Limited, said, "With consumers at the core, our focus remains on strengthening the strategic pillars of driving superiority - in our products, communication, and overall experience. Colgate MaxFresh underwent a relaunch, introducing a new-to-world proprietary formula infused with unique cooling crystals to deliver a superior freshness experience which is winning with consumers ahead of our direct competition.”
Narasimhan added that the company is pleased with the top-line growth for the quarter supported by the strong performance of its core equities. “Profitability indicators are on an upward trend and we continue to enhance the investment support behind our brands. Our current performance underscores the effectiveness of our strategy, focus on technology, securing the right talent, and efforts in governance and cost management. These initiatives have yielded consistent growth for the company, with our toothpaste segment achieving double-digit growth and positive volume expansion,” she said.
