Colgate Palmolive India's Ad Spend Surges By 18.17% In Q4 FY24

Colgate-Palmolive India increased its advertising expenditure in the fourth quarter of the fiscal year 2024. According to the company's filing, advertising spend surged by 18.17 per cent, hitting Rs 168.87 crore, a jump from the Rs 142.90 crore spent in the same quarter of the previous year.

Throughout the fiscal year 2024, Colgate-Palmolive (India) ramped up its advertising efforts, with expenditure growing by 19.92 per cent compared to the previous fiscal year. In total, the company allocated Rs 760.42 crore towards advertising initiatives in FY24, up from Rs 634.07 crore in FY23.

However, despite the year-on-year increase, the advertising expenditure experienced a slight dip of 17.32 per cent quarter over quarter. In Q3 FY24, the company had spent a total of Rs 204.26 crore on advertising. Nonetheless, Colgate-Palmolive (India) saw a 20.1 per cent rise in Profit After Tax (PAT), reaching Rs 379.8 crore during the March quarter.

Compared to the corresponding quarter of the previous year, Colgate-Palmolive (India) reported a PAT of Rs 316.2 crore in Q4 FY24, as per regulatory filings.

The company's net sales for the quarter under review climbed to Rs 1,480.7 crore, up from Rs 1,341.7 crore in the same period last year. This growth momentum was attributed to robust sales performance in the toothpaste segment, particularly in rural markets, which exhibited positive signs of demand recovery, outpacing urban market growth.

For the full fiscal year ending on March 31, Colgate-Palmolive (India) reported 26.4 per cent year-on-year growth in PAT. The figure surged to Rs 1,323.7 crore from Rs 1,047.1 crore in the previous fiscal year. The company attributed its strong performance in FY24 to the successful execution of strategic objectives, including growth acceleration, premiumisation, and developments in the toothbrush and personal care categories.

Moreover, the rural business segment outpaced urban growth, while modern trade and e-commerce platforms delivered solid performances. 

“At the end of the last quarter of FY24, we are pleased with the all-round progress we have made on our strategic priorities…In this quarter, our strong results of 10 per cent top-line growth and 20 per cent profit growth have come on the back of continued commitment to strategic priorities,” Prabha Narasimhan, managing director and chief executive officer of Colgate-Palmolive (India) said in its release. 

“From a geography lens, our rural business has grown faster than urban and we continue to see strong performance in modern trade and e-commerce platforms. Margin delivery has been driven by continued great execution on our world-class Funding The Growth program and gains are consistently being reinvested to grow the business,” Narasimhan added. 

Looking ahead, Colgate-Palmolive (India) remains optimistic about market recovery, brand strengthening initiatives and innovation, including the introduction of a unique 'Tooth Whitening Booster'.