Sustained double digit volume growth at 12% Colgate’s 3q net sales up 14%

3Q 2010-11 : Colgate-Palmolive (India) Limited today reported net sales for the quarter ended December 31, 2010 of Rs. 558.2 crore, a 14% increase over the same quarter of the previous year. Reported net profit after tax for the third quarter of the financial year is Rs 66.2 crore with an Earnings per Share of Rs. 4.87 for the quarter, despite substantial investments in brand and equity building activities.
9M 2010-11 : Net sales for the nine months ended December 31, 2010 are Rs. 1,638.8 crore, an increase of 13% over the same period of the previous year. Net profit after tax for the nine months is Rs. 288.5 crore.

DRIVING GROWTH
During the quarter, the Company achieved a volume growth of 12% over the same quarter of the previous year led by a strong 13% growth in the toothpaste category, enhancing its leadership position by registering a 53.4% volume market share for Jan-Nov’10 compared to 52.3% in Jan-Nov’09. The flagship brands “Colgate Dental Cream”, “Colgate Sensitive”, “Active Salt”, “Max Fresh” and “Colgate Total” continue to contribute to the strong volume growth.
In the toothbrush category, the Company has also witnessed a steady volume growth of 24% over the same quarter of the previous year. Volume market share in the toothbrush category has increased from 39.7% (Jan-Nov 09) to 40.9% (Jan-Nov10). The volume market share in the toothpowder category at 47.3% (Jan-Nov 10) is slightly lower than a year ago.
The Company continues its growth momentum in the emerging mouthwash category. Plax mouthwash has increased its volume market share from 6.6% (Jan-Nov 09) to 17.3% (Jan-Nov 10).
During the current quarter, the Company continued to invest in its brand and equity building activities with advertising and sales promotion expenditure at Rs. 120.6 crore as against Rs. 75.3 crore for the same period of the previous year. This additional investment coupled with the lower deduction under the Income Tax Act on the profits of the Baddi Manufacturing facility, has resulted in lower Net profit after tax and Earnings per share for the quarter.
Mukul Deoras, Managing Director commented: “The Company’s continued investment in the brand and equity building activities has strengthened its leadership in the Oral Care category, resulting in a consistent double digit volume growth over the last eleven quarters. In an inflationary environment, every effort is being taken to achieve cost effectiveness while ensuring that the Company remains competitive in the market place through judicious pricing actions.”
FUNDING GROWTH
The Company’s continuing efforts and focussed programs to enhance efficiencies and reduce costs continue to yield strong, positive results and the operating margins continue to show strong growth and fund investments in building and strengthening brand equity and the business.
GUINNESS WORLD RECORDS
Colgate in association with the Indian Dental Association (IDA) achieved a Guinness World Record™ by providing dental check-ups to 66,322 children on a single day across multiple locations involving 33 schools in five cities across India. The Company also achieved a Guinness World Record™ wherein around 1,011 school children rinsed simultaneously with a mouthwash.
With this record, the Company achieved a hat trick of records in the oral care category that started of in 2007 with the ‘Colgate Brush-up Challenge’ where 1,77,003 students from 386 schools in 22 cities across the country, in one day and at one time, brushed their teeth for one minute.