The Hindu Business Line : Colgate-Palmolive net up 37 %

Mumbai May 3 Colgate-Palmolive (India) Ltd has reported a 37 per cent increase in net profit at Rs 50.6 crore for the fourth quarter ended March 31, 2007. The FMCG company recorded net sales of Rs 343.3 crore, an increase of 14 per cent over the same quarter of the previous year.

VRS scheme

For the year, the company achieved a net profit of Rs 160.2 crore, an increase of 16 per cent over the previous year. The reported net profit of Rs 160.2 crore for the year is after absorbing a charge of Rs 58.0 crore pre-tax (Rs 38.5 crore net of tax) for a voluntary retirement scheme (VRS) implemented in September 2006 at its Sewree manufacturing facility.

Excluding the VRS charge and certain credits, the net profit after tax from operations for the year is Rs 185.3 crore, a 26 per cent increase over the previous year, the company said.

Strong Growth

Net sales for the year ended March 31, 2006-07, stood at Rs 1,295.1 crore, a 15 per cent increase over the previous year. Excluding the VRS charge and certain credits, the operating profit (EBITDA) for the year has grown by 16 per cent to Rs 202.1 crore and EBIT for the year has grown by 17 per cent to Rs 186.8 crore.

During the year, the company recorded a 10 per cent unit volume growth with its core toothpaste category growing by 9 per cent during the year and 8 per cent in the quarter. Growth in the toothpaste category was led by the flagship brand "Colgate Dental Cream", "Colgate MaxFresh Gel" — launched in Q4 of 2006-07 and the company's low price offering "Colgate Cibaca Top".

The toothbrush category also continued its strong growth momentum with volume growing by 22 per cent for the year and 20 per cent in the quarter. Toothpowder volumes registered a 5 per cent growth for the year and 9 per cent for the quarter.

Special Dividend

The liquid body wash category comprising of shower gels, shower crème and liquid hand wash grew by 46 per cent during the year, driven entirely by unit volume.

The calendar year 2007 marks the 70th year of operations for the company and to commemorate the event, the board of directors have recommended a special dividend of Rs 2 per share. This is in addition to the two interim dividends aggregating to Rs 7.50 per share. The total dividend for the year has been increased to 95 per cent i.e. Rs 9.50 per share. During the year 2005-06, the company had paid a total dividend of 75 per cent i.e. Rs 7.50/share.