COLG: Profitability hits Rs2.94bn 1HFY22

January 28, 2022 (MLN): Colgate-Palmolive Pakistan Limited (PSX: COLG) has unveiled its financial performance for the half-year ended December 31, 2021 today wherein the company reported net profits worth Rs2.94 billion against the profits of Rs2.77bn reaped in the same period last year (SPLY).

Volume gains and selective selling price increase helped the company to grow its top line by 17% YoY to clock in at Rs28.75bn. However, the gross profit margin of the company dropped to 27% compared to 30% during SPLY as the selling price increase did not fully offset the impact of currency devaluation during the period.

The company continued to support its brands through media and promotional activities, thus selling and distribution costs went up by 4.8% YoY primarily due to increasing freight cost. Administrative expenses increased by 13.4% YoY mainly on account of employee-related costs and depreciation.

The company continued to lead in oral care, however, other products such as toothpaste, bar soap and shampoo also recorded a healthy contribution towards business growth.

Moreover, the company also witnessed a rise in its finance cost and tax payments by 21.4% and 5% to stand at Rs71.17million and Rs1.27bn, respectively which put a limit on the company’s profitability.

Alongside financial results, the board of directors announced an interim cash dividend for the year ending June 30, 2022, at Rs 24.50 per share of Rs 10 each i.e. 245%.

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