Colgate earns Rs5.1bn in three months

October 28, 2024 (MLN): Colgate Palmolive (Pakistan) Limited (PSX: COLG) earned a net profit of Rs5.1 billion [EPS: Rs21.02] during the quarter ending September 2024, up 37.9% from the profit of Rs3.7bn [EPS: Rs15.24] in the same period last year (SPLY).

The company's revenue increased by 8.4% to Rs30bn as compared to Rs27.68bn in SPLY.

Moreover, the cost of sales fell by 0.5%, improving the gross profit by 28.8% to Rs10.8bn in Q1 FY25.

The gross margins rose to 36.0% as compared to 30.3% in SPLY.

During the period under review, other income also rose 41.1% to stand at Rs1.55bn in Q1 FY25 as compared to Rs1.1bn in SPLY.

On the expense side, the company's administrative expenses rose 39.2% from a year ago to Rs348.97m, selling and distribution expenses rose 15.3% to Rs3.15bn, and other operating expenses rose 39.7% to Rs628.8m.

The company’s finance cost inflated by 7.8% and stood at Rs41.65m as compared to Rs38.63m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a tax expense worth Rs3.07bn against Rs2.31bn paid in the corresponding period of last year.

This translates to an effective tax rate of 37.6% as compared to 38.4% in SPLY.

Amount in thousand except for EPS

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