Oct 22 (Reuters) - Colgate-Palmolive India reported a rise in second-quarter profit on Thursday, helped by demand for its toothpaste portfolio.
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The company reported a net profit of 3.42 billion rupees ($36.07 million) for the quarter ended September 30, compared with 3.28 billion rupees a year earlier
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Its toothpaste portfolio delivered high-single-digit volume growth, led by its premium toothpaste range and strong performance in Colgate MaxFresh
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Gross margin expanded 40 basis points year-on-year to 69.6%, helped by the company's Funding the Growth program
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Revenue from operations increased 12.3% to 16.92 billion rupees from 15.07 billion rupees a year earlier.
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"We remain committed to navigating commodity cost fluctuations through disciplined cost savings and calibrated pricing actions," said Managing Director and CEO Manish Anandani
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Indian unit of US-based Colgate-Palmolive said it increased investments in brand-building and premiumisation during the quarter, and it expects robust growth ahead, driven by its science-backed product portfolio and strategic advertising spends.
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Analysts at HDFC Securities had expected Colgate's growth to be driven by 12% volume growth on a low base, while analysts at Jefferies had forecast double-digit volumes and mid-single-digit pricing growth.
($1 = 94.8175 Indian rupees)
Reporting by Payel Das; Editing by Jochelle Mendonca and Harikrishnan Nair
Source: Reuters