The Hindu Business Line : Colgate Palmolive Q4 net up 23 pc

DESPITE marginal declines in its fourth quarter sales and annual sales for 2003-04, Colgate-Palmolive India recorded a 23 per cent increase in net profit for the fourth quarter of the fiscal, and a 22 per cent increase in its net profit for the whole year.

Net profit for the fourth quarter amounted to Rs 36.68 crore (Rs 29.77 crore).

Net profit for the year as a whole stood at Rs 108 crore (Rs 88.66 crore).

Net sales for the quarter ended March 31, 2004, amounted to Rs 231.14 crore (Rs 232.64 crore) showing a 0.6 per cent decline; and net sales for the whole year was Rs 939.19 crore (Rs 947.44 crore), showing a 0.9 per cent decline.

Colgate had to resort to aggressive competition against low-priced competitors in a market that was sluggish too; as a result, its price reductions affected almost 65 per cent of company sales, said a news release from the company.

Its "record profits" and maintenance of sales levels were possible because of the volume growth resulting from the market response to its price reduction in toothpastes, and also because of successful on-going cost rationalisation and productivity improvement programmes, said the company.

The EBITDA ratio increased by 170 basis points to 14 per cent of sales, and also grew 12 per cent, to Rs 146 crore, during the year.

Other income during the year amounted to Rs 29.92 crore (Rs 35.76 crore).

Total expenditure increased only 2.9 per cent, to Rs 792.76 crore (Rs 817.01 crore). Interest expense was minimal, at Rs 0.59 crore (Rs 0.24 crore), while depreciation and amortisation for the year stood at Rs 24.26 crore (Rs 19.47 crore).

Profit before tax amounted to Rs 151.48 crore (Rs 145.48 crore).

The board of directors of the company has recommended a first interim dividend of 15 per cent for the year ending March 31, 2005, payable on or about July 23, 2004.