COLG declares Rs34.5 DPS as profit spikes in FY24

August 01, 2024 (MLN): Colgate Palmolive (Pakistan) Limited (PSX: COLG) recorded an increase of 66.1% YoY in its earnings for the year ended June 30, 2024 (FY24), clocking in its profit after tax at Rs17.29 billion [EPS: Rs71.23], compared to a profit of Rs10.41bn [EPS: Rs42.88] in FY23.

Along with the results, the company also announced a final cash dividend of Rs34.50 per share i.e. 345%. This is in addition to interim cash dividend already paid at Rs22.50 per share i.e. 225%

Going by the results, the company's net sales rose by 23.8% YoY to Rs113.23bn as compared to Rs91.46bn in SPLY.

The cost of sales also increased by 16.8% YoY but was lesser than proportionate to sales rise, which improved the gross profit by 41.4% YoY to Rs36.89bn in FY24.

Accordingly, the gross margins improved to 32.6% as compared to 28.5% in SPLY.

On the expense side, the company's administrative expenses rose 27.9% YoY to Rs1.17bn, selling and distribution expenses increased 20.6% YoY to Rs11.05bn, and other operating expenses moved up 32.81% YoY to Rs1.98bn.

COLG's profit received further pump as its other income during the period under review, spiked 137.1% YoY to stand at Rs5.1bn in FY24 as compared to Rs2.15bn in SPLY.

The company’s finance cost expanded by 9.8% YoY and stood at Rs165.48m as compared to Rs150.68m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs10.34bn against the Rs6.12bn paid in the corresponding period of last year, depicting an increase of 68.9% YoY.

To note, The written tax amount includes both the final taxes and the deferred taxes.

Amount in thousand except for EPS

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