Colgate-Palmolive set Rs29 dividend despite 10% profit decline

February 2, 2026 (MLN): Colgate-Palmolive (Pakistan) Limited (PSX: COLG) reported a net profit of Rs8.71bn for the half year ended December 31, 2025, a 10.2% decline from the Rs9.70bn profit recorded in the same period last year.

The company's earnings per share decreased to Rs35.87 from Rs39.94 in the corresponding period of the previous year, while dividend was declared at Rs29 per share.

The consumer goods manufacturer's turnover increased 5.1% YoY to Rs81.71bn from Rs77.75bn, demonstrating modest top-line growth.

Sales tax rose 5.1% to Rs13.60bn from Rs12.94bn, while trade and other discounts increased 17.4% to Rs8.10bn from Rs6.89bn.

Net turnover grew 3.6% to Rs60.01bn from Rs57.92bn in the prior period.

Cost of sales increased 4.4% to Rs38.93bn from Rs37.31bn, resulting in a gross profit of Rs21.07bn, up 2.3% from Rs20.61bn in the same period last year.

The modest gross profit growth indicates relatively stable margins despite rising input costs.

The gross profit margin stood at 35.1% compared to 35.6% in the prior period, which indicates slight margin compression

Selling and distribution costs rose 6.6% to Rs6.60bn from Rs6.19bn, while administrative expenses increased 6.8% to Rs720.3m from Rs674.2m.

Other expenses declined 3.4% to Rs974.9m from Rs1.01bn, while other income dropped significantly by 45.2% to Rs1.38bn from Rs2.52bn, which notably impacted overall profitability.

Profit from operations declined 7.2% to Rs14.16bn from Rs15.25bn in SPLY, primarily reflecting the substantial decrease in other income.

Finance cost and bank charges decreased 3.9% to Rs82.8m from Rs86.2m, providing marginal relief. Profit before levy and taxation stood at Rs14.07bn, down 7.2% from Rs15.16bn in the corresponding period.

The company recorded a minimal levy of Rs3.1m compared to Rs13,000 in the prior period. Profit before taxation reached Rs14.07bn, representing a 7.2% decline from Rs15.16bn.

The taxation expense decreased 1.9% to Rs5.36bn from Rs5.47bn, partially mitigating the impact on net profitability.

Colgate-Palmolive Pakistan is a leading manufacturer and marketer of oral care, personal care, and home care products in the country.

The company's performance reflects the challenging operating environment, the decline in other income emerged as a significant factor affecting profitability, while core operations demonstrated resilience with revenue growth and stable gross margins.

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