Colgate-Palmolive continues to deliver profitable growth

January 30, 2020 (MLN): Colgate-Palmolive Pakistan Limited has unveiled its financial performance for the half-year ended December 31^st 2019 wherein the company reported net profits worth Rs 2.3 billion against the profits of Rs1.7 billion reaped in the same period of the previous year.

Volume gains and selective selling price increase helped the Company to grow its top line by 19.2% YoY. However, the gross profit margin of the Company dropped by 100 bps 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. Selling and distribution costs were up by 6.8% YoY primarily due to increasing freight cost. Administrative expenses increased by 17.9% YoY mainly on account of employee-related cost and depreciation.

The Company continued to lead in Oral Care, however, other products such as toothpaste, bar soap and shampoo also recorded healthy contribution towards business growth.

Moreover, the company also witnessed a rise in its finance cost and tax payments which put a limit on the company’s profitability.

Alongside financial results, the Board of Directors of the company announced an interim Cash Dividend for the year ending June 30, 2020, at Rs 22.5 per share of Rs 10 each i.e. 255%.

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