Mumbai: Colgate-Palmolive (India) Ltd (www.colgate.co.in) has announced a 12-per cent increase in its net profits for the fourth quarter and the full year 2001-02 respectively. Reported net profits have increased from Rs 62.5 crore for 2001 to Rs 69.8 crore for the year ended 31 March 2002. The EPS increased 12 per cent from Rs 4.60 to Rs 5.13 per share.
Net sales for 2002 at Rs 1,161 crore are essentially flat against Rs 1,177 crore in the previous year. As widely reported, the recessionary economic conditions during the financial year 2001-02 negatively impacted the fast-moving consumer goods (FMCG) sector, resulting in a de-growth in the oral-care market.
Further, the decline in consumer demand and aggressive pricing and promotional activities by all FMCG companies necessitated a correction to trade channel inventories, which the company implemented during January-March 2002.
The company continues to invest in brand equity building with strong marketing and sales support initiatives, with an 8-per cent increase in advertising expenditure. This strategy has resulted in a dramatic improvement of 3-percentage points in the value market shares of toothpastes from 46.5 per cent in December 2001 to 49.6 per cent in April 2002.
Colgate was once again rated the No 1 brand across all categories and in all income groups in the A&M annual survey of India's top brands. This is the eighth time in nine surveys that Colgate has been ranked India's No 1 brand since the survey was introduced in 1992.
EBITDA increased by 100 basis points to 9.2 per cent from operational efficiencies and the savings was used to fund the higher sales and marketing investments. Cash generation increased by 6 per cent to Rs 125 crore for the year - an all-time high.
The company's commitment to creating a work environment and culture which makes Colgate ''the best place to work'' and it's initiatives at strengthening its human capital through extensive training and targeted selection has paid rich dividends. In a survey of Indian employers by Hewitt Associates and Business Today, Colgate was ranked among the top 10 best employers.
The company has paid two interim dividends for 2001-02 amounting to Rs 4.25 per share with a total payout of Rs 61.3 crore (inclusive of dividend distribution tax). For 2000-01, the company had paid a regular dividend of Rs 3.50 per share (Rs 52.5 crore), excluding a one-time special dividend of Rs 4.75 per share paid in September 2001.
The auditors, Arthur Andersen and Associates, chartered accountants, have expressed that they do not wish to seek reappointment as statutory auditors of the company. The board of directors of the company places on record its gratitude and appreciation for the services rendered by Arthur Andersen over the past several years.
Consequently, the board has recommended to the shareholders the appointment of PricewaterhouseCoopers, chartered accountants, as statutory auditors from the next annual general meeting.
Colgate-Palmolive (India) is India's leading provider of scientifically proven oral-care products with multiple benefits at various price points. These have become an essential part of daily oral hygiene and therapeutic oral-care in India.
The range includes toothpastes, toothpowder and toothbrushes under the Colgate brand, as well as a specialised range of dental therapies under the banner of Colgate Oral Pharmaceuticals. The company is also a leading producer of personal-care products under the Palmolive brand name.
also see : www.colgate.co.in