Colgate announces record net profit

During the year, the toothpaste portfolio was further strengthened with the re-vitalisation of the flagship brand "Colgate Dental Cream" to offer superior germ fighting efficacy and "Colgate Fresh Energy Gel" with intense new flavours that deliver long-lasting fresh breath. The toothpaste range was expanded with the launch of "Colgate Herbal White" for pearly white teeth naturally. In the toothbrush category, Colgate launched India''s first battery powered toothbrush for kids - "Colgate Motion Kids". The company''s personal care offerings were significantly expanded with the "Palmolive Aroma" range of toilet soap, liquid hand wash, shower gel and talcum powder.

Across the categories, brand and business building exercises were complemented with innovative consumer promotions that encouraged trial, increased consumption and rewarded consumer trust and loyalty. "Colgate" was rated the most trusted brand in India in the Brand Equity survey across all brands and categories. "Colgate" has been the only brand to be consistently ranked in the top 3 in all the surveys conducted by Brand Equity.

The company''s focussed programs and concerted efforts to reduce operational costs and improve efficiencies continue to be a key contributor to the growth in operating profit (EBITDA) ratio which has increased by 170 basis points to 14 per cent of sales. EBITDA and net profit for the year grew by 12 per cents to Rs. 146 crore and by 22 per cent to Rs. 108 crore respectively.

During the year, the company paid three interim dividends aggregating to 60.00 per cent i.e. Rs. 6.00/share. This included a one-time special 25th anniversary dividend of 12.5 per cent i.e. Rs. 1.25/share. In 2002-03 the company paid two interim dividends aggregating to 42.5% i.e. Rs. 4.25/share. No final dividend has been recommended for the current year ended March 31, 2004.

The board of directors of the company at their meeting to-day declared a first interim dividend of 15 per cent, i.e. Rs.1.50/share for the year ending March 31, 2005, payable on or about July 23, 2004.