Toothpaste maker Colgate-Palmolive (India)’s quarterly profit rose 30.5 per cent on Wednesday, aided by improved domestic demand.
Net profit rose to Rs 274 crore for the quarter ended 30 June compared to Rs 210 crore a year earlier.
Steady rural demand pick-up and some ease in domestic retail inflation helped Indian consumer goods companies log gains during the quarter.
Sales rose nearly 10.8 per cent to Rs 1,315 crore, boosted by the company’s mainstay oral care category, with toothpaste sales in the high double digits.
Domestic sales grew 12.3 per cent, with the sector seeing early signs of recovery in rural areas, Colgate-Palmolive India CEO Prabha Narasimhan said in a statement.
In April, the company’s US-based parent Colgate-Palmolive raised its full-year organic sales forecast, betting on consistent price hikes and demand for its pet nutrition products.
The company is set to report its June-quarter earnings on Friday.
The Indian unit’s results come after it reported a drop in profit in three of the prior four quarters.
Earlier this month, local rival Dabur India said it expects June-quarter sales to grow over 10 per cent and gross margin to expand due to easing inflation.
Dabur will report its quarterly earnings on 3 August while bigger rival Hindustan Unilever missed profit estimates last week due to higher expenses.
Shares of Colgate-Palmolive (India) hit an all-time high of 1,909 rupees on Wednesday before closing 0.8 per cent down ahead of its results. The stock has risen 22.6 per cent this year compared to a 19.7 per cent gain in the Nifty FMCG index.
