Colgate-Palmolive’s Q4FY13 Numbers: Not Quite Sparkling

FMCG major, Colgate-Palmolive (India) has posted a mixed set of numbers for the concluding quarter of FY13. The company’s topline was at Rs 811.6 crore, up 15.61% on a YoY basis from that of Rs 702 crore in the previous fiscal same period. The bottomline, however, witnessed a decline to stand at Rs 123.20 crore for Q4FY13 as against Rs 130.77 crore in Q4FY12. The decline in the profits can be attributed to higher tax expense, which grew by 10.17% on a YoY basis to stand at Rs 46.27 crore.

On the EBITDA front, however, the company has performed better. Its EBITDA for Q4FY13 stands at Rs 208.65 crore as against Rs 167.15 crore for Q4FY12, marking a growth of 24.83%. The margins have also increased by 190 basis points on a YoY basis to stand at 25.71% for Q4FY13. The raw material costs as a percentage of sales have taken a marginal decline on a yearly basis to come in at 31.68% for Q4FY13.

During the quarter, the company has been able to register a volume growth of 12% overall. It increased its market share in the toothpaste category to 55.4%, an increase of 130 basis points on a YoY basis. It has said that it continues to focus on the mouthwash category and has been able to increase its market share marginally to 26.5% (January 2013 to April 2013) as against 26.2% (January 2012 to April 2012). The toothpaste segment rose 11% in volumes, mainly contributed by its flagship brands Colgate Dental Cream, Active Salt, Max Fresh and Colgate Total. The company has been able to sustain its leadership position in the toothbrush category, with a market share of 41.5% in volumes (January 2013 to April 2013) as against 37.7% (January 2012 to April 2012).

Colgate-Palmolive (India) has declared a third interim dividend of Rs 9 per share, taking the total to Rs 28 per share for FY13. At the current market price of Rs 1473, the dividend yield stands at 1.96%.