BENGALURU (Reuters) – Toothpaste maker Colgate-Palmolive (India)’s quarterly profit rose 30.5% on Wednesday, aided by improved domestic demand.
Net profit rose to 2.74 billion rupees ($33.40 million) for the quarter ended June 30 compared to 2.10 billion rupees a year earlier.
Steady rural demand pick-up and some ease in domestic retail inflation helped Indian consumer goods companies log gains during the quarter.
Sales rose nearly 10.8% to 13.15 billion rupees, boosted by the company’s mainstay oral care category, with toothpaste sales in the high double digits.
Domestic sales grew 12.3%, with the sector seeing early signs of recovery in rural areas, Colgate-Palmolive India CEO Prabha Narasimhan said in a statement.
In April, the company’s U.S.-based parent Colgate-Palmolive Co raised its full-year organic sales forecast, betting on consistent price hikes and demand for its pet nutrition products.
The company is set to report its June-quarter earnings on Friday.
The Indian unit’s results come after it reported a drop in profit in three of the prior four quarters.
Earlier this month, local rival Dabur India said it expects June-quarter sales to grow over 10% and gross margin to expand due to easing inflation.
Dabur will report its quarterly earnings on Aug. 3 while bigger rival Hindustan Unilever missed profit estimates last week due to higher expenses.
Shares of Colgate-Palmolive (India) hit an all-time high of 1,909 rupees on Wednesday before closing 0.8% down ahead of its results. The stock has risen 22.6% this year compared to a 19.7% gain in the Nifty FMCG index.
($1 = 82.0312 Indian rupees)
(Reporting by Biplob Kumar Das in Bengaluru; Editing by Sonia Cheema)
