BENGALURU (Reuters) – Colgate Palmolive India reported a 33% rise in first-quarter profit on Monday, boosted by price hikes and steady domestic demand.
The company’s net profit rose to 3.64 billion rupees ($43.5 million) in the April-June period from 2.74 billion rupees a year earlier.
Even as Colgate Palmolive raised prices to offset higher raw materials costs, customers continued to prioritize spending on personal care products.
Demand in rural markets outpaced growth in urban areas for a second straight quarter, the company said.
The toothpaste maker’s overall sales rose 13% to 14.86 billion rupees, owing to a 13% growth in its domestic net sales during the quarter.
The company also sells its products in Asia Pacific and South Africa, among others.
“Our toothpaste portfolio witnessed double-digit percentage growth driven by high-single digit percentage volume growth,” said Prabha Narasimhan, managing director and CEO of Colgate-Palmolive (India).
Consumer goods makers have faced growing competition from smaller brands, which have been encroaching on their shelf space as citizens cut back on expenses amid persistently high inflation.
Colgate Palmolive boosted its advertising expenses by 10% in the quarter, driving a 9% increase in total expenses to 10.31 billion rupees.
Earlier this month, Hindustan Unilever, which makes Pepsodent toothpaste among other products, posted a higher first-quarter profit as price cuts boosted volumes. Dabur India will report its quarterly results on Aug. 1.
Last week parent Colgate-Palmolive raised its forecasts for annual profit and organic sales, after beating June-quarter estimates on resilient demand for its high-priced products.
Shares of Colgate Palmolive India closed up 1.4% ahead of the results.
($1 = 83.7248 Indian rupees)
(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Savio D’Souza and Eileen Soreng)
