Colgate-Palmolive (India) (500830) Q4 03/04 earnings summary

Executive summary

• FY2003-04 sales, excluding excise duty, were Rs 939.19 crore versus Rs 947.44 crore; net profit rose 22% to Rs 108 crore.

• Price cuts on Colgate Dental Cream and Colgate Cibaca affected ~65% of sales and were credited with stimulating demand and restarting volume growth.

• Colgate Cibaca became the No. 1 brand in the low-price toothpaste segment by April 2004.

Financial highlights

• Total revenue was Rs 969.11 crore versus Rs 983.20 crore; profit before tax rose to Rs 151.48 crore from Rs 146.48 crore.

• Profit after tax increased to Rs 108 crore from Rs 88.66 crore; sales excluding excise duty were Rs 939.19 crore versus Rs 947.44 crore.

• Consolidated revenue was Rs 972.97 crore versus Rs 982.17 crore; consolidated profit after tax was Rs 112.39 crore versus Rs 85.42 crore.

• Consolidated profit before tax was Rs 158.43 crore versus Rs 142.68 crore.

Outlook and guidance

• A new toothpaste facility at Baddi was under construction, with commercial production scheduled for April 2005; fiscal incentives include excise-duty exemption and an income-tax holiday.

• Management expected category development and expansion to support healthy market growth over the next few years.