Colgate earns Rs7.37bn in 1HFY24, declares dividend of Rs22.5

January 30, 2024 (MLN): Colgate Palmolive (Pakistan) Limited (PSX: COLG) experienced a rise of 74.8% YoY in its profits for the 1HFY24, earning a profit after tax of Rs7.37 billion [EPS: Rs30.36], compared to a profit of Rs4.22bn [EPS: Rs17.37] in the same period last year (SPLY).

In addition to the financial results, the company's Board of Directors (BoD) has declared an interim cash dividend for the year ending on June 30, 2024, of Rs22.5 per share.

Going by the results, the company's top line surged by 31.3% YoY to Rs55.07bn as compared to Rs41.94bn in SPLY.

Likewise, the cost to sell also witnessed a rise of 24.45% YoY to Rs34.43bn. As the increase in sales was greater than proportionate to the rise in cost to sell, the gross profit improved by 50.81% YoY to Rs16.43bn in 1HFY24.

On the expense section, the company observed a surge in Selling and distribution expenses by 20.98% YoY and administrative expenses by 31.92% YoY to clock in at Rs5.49bn and Rs573.45m respectively during the review period.

Similarly, other expenses of COLG recorded an increase of 87.35% YoY to be reported at Rs851.27m during the review period.

The company's profit was further supported by other incomes, which stood at Rs2.42bn in 1HFY24, up by 3.09x YoY

The company’s finance costs rose by 15.89% YoY and stood at Rs86.77m as compared to Rs74.88m in 1HFY23, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs4.48bn against the Rs1.96bn paid in the corresponding period of last year, depicting a rise of 2.28x YoY.

Amount in thousand except for EPS

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