Profits at Colgate-Palmolive’s India unit rose in the second quarter on higher demand -October 26, 2023 1:17 p.m.

Colgate-Palmolive (India) on Thursday reported a 22% rise in second-quarter profit, driven by rising urban demand for pricey toothpaste and signs of growth in rural consumption.

The company’s net profit rose to 3.40 billion rupees ($40.86 million) for the quarter ended Sept. 30, from 2.78 billion rupees a year earlier.

Sales rose 6.1% to Rs 14.62 billion, driven by its core oral care category.

The rise of premium oral care products has given customers with higher incomes access to higher quality options. Intensive marketing efforts and increased distribution have increased demand in rural areas.

“During the quarter, we redoubled our efforts to relaunch Colgate Strong Teeth’s flagship toothpaste, expanding its reach and availability,” Prabha Narasimhan, CEO, Colgate-Palmolive (India), said in a statement.

Last week, rival Hindustan Unilever reported a bigger-than-expected increase in profit, thanks to increased sales in the beauty, home and personal care sectors.

Colgate Palmolive (India), which also produces hand wash and bath soap, declared its first interim dividend of Rs 22 per share for the financial year 2023-24.

The company’s shares fell 1.9% on Thursday ahead of the earnings release. The stock is up 32.4% this year, compared with 15.3% on the Nifty consumer staples index ($1 = 83.2103 Indian rupees) (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Mrigank Dhaniwala).

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