COLG 9MFY26 sees 4% decline in profit
MG News | April 30, 2026 at 10:16 AM GMT+05:00
April 30, 2026 (MLN): Colgate-Palmolive (Pakistan)
Limited (PSX: COLG) reported a mild 4% decline in its net profit for the nine
months ended March 31, 2026, recording Rs13.48bn compared to Rs14.10bn in the
corresponding period last year.
Reflecting this bottom-line contraction, the company's basic
and diluted earnings per share (EPS) slightly dropped to Rs55.53 from Rs58.09
in 9MFY25.
The dip in profitability occurred despite a steady top-line
expansion, largely due to a significant reduction in secondary income and a
higher tax burden.
COLG’s net turnover posted a 5% year-on-year increase,
rising to Rs91.14bn from Rs86.98bn.
The company successfully kept its direct costs in check,
with the cost of sales growing at a slightly slower pace of 4% to reach
Rs58.47bn. Consequently, the core gross profit secured a healthy 6% expansion,
settling at Rs32.67bn compared to Rs30.85bn in the prior year.
On the operational front, overheads grew steadily to support
the higher sales volume. Selling and distribution costs rose by 9% to
Rs10.03bn, while administrative expenses increased by 9% to Rs1.11bn.
The primary drag on the company's operational performance,
however, came from a sharp 38% plunge in "other income," which
dropped to Rs1.99bn from a robust Rs3.21bn last year. Weighed down by this
shortfall in secondary income and rising overheads, the profit from operations
dipped by 2% to Rs21.98bn.
Below the operating line, COLG's minimal finance costs
dropped a further 5% to Rs118.93m. After accounting for a minor levy, the
profit before taxation settled at Rs21.86bn, reflecting a mild 2% decline.
The final squeeze on the bottom line came from taxation. The
company absorbed a 3% higher income tax expense of Rs8.38bn (up from Rs8.11bn),
which outpaced pre-tax earnings growth. This combination of lower other income
and elevated taxes led Colgate-Palmolive (Pakistan) to securely close the
nine-month period with its net profit contained to a 4% decline, standing at
Rs13.48bn.
|
STATEMENT OF PROFIT OR
LOSS FOR THE NINE MONTH ENDED MARCH 31, 2026 (Rs.000) |
|||
|
Description |
2026 |
2025 |
change % |
|
Turnover |
124,121,223 |
117,168,951 |
6% |
|
Sales
tax |
(20,675,763) |
(19,505,182) |
6% |
|
Trade
and other discounts |
(12,303,606) |
(10,686,644) |
15% |
|
Net
turnover |
91,141,854 |
86,977,125 |
5% |
|
Cost
of sales |
(58,472,559) |
(56,127,805) |
4% |
|
Gross
profit |
32,669,295 |
30,849,320 |
6% |
|
Selling
and distribution cost |
(10,026,221) |
(9,160,024) |
9% |
|
Administrative
expenses |
(1,113,980) |
(1,024,481) |
9% |
|
Other
expenses |
(1,535,002) |
(1,531,996) |
0.2% |
|
Other
income |
1,987,911 |
3,207,236 |
-38% |
|
Profit
from operations |
21,982,003 |
22,340,055 |
-2% |
|
Finance
cost and bank charges |
(118,926) |
(124,991) |
-5% |
|
Profit
before levy and taxation |
21,863,077 |
22,215,064 |
-2% |
|
Levy |
(3,121) |
(19) |
16326% |
|
Profit
before taxation |
21,859,956 |
22,215,045 |
-2% |
|
Taxation |
(8,377,686) |
(8,111,360) |
3% |
|
Profit
after taxation |
13,482,270 |
14,103,685 |
-4% |
|
Total
comprehensive income for the period |
13,482,270 |
14,103,685 |
-4% |
|
Earnings
per share - basic and diluted (Rupees) |
55.53 |
58.09 |
-4% |
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