Colgate Palmolive's Q3 net profit declines by 23%
Issam Bachaalani, Managing Director at Colgate-Palmolive (India) said, “In the awake of the liquidity crunch during the quarter, we took proactive measures to support our business partners to ensure ease of business. We extended credit to our customers, provided additional incentives, accelerated processing of trade claims and advanced payments to our supply chain partners to address liquidity issues.”
Colgate Palmolive missed analyst estimates by reporting weak third quarter result for quarter ended December 31, 2016 period, citing liquidity crunch pushed by demonetisation drive as the main reason.
The company reported net profit of Rs 127.82 crore, a decline of 22.58% compared to Rs 165.11 crore in the corresponding period of the previous year.
Issam Bachaalani, Managing Director at Colgate-Palmolive (India) said, “In the awake of the liquidity crunch during the quarter, we took proactive measures to support our business partners to ensure ease of business. We extended credit to our customers, provided additional incentives, accelerated processing of trade claims and advanced payments to our supply chain partners to address liquidity issues.”
A Bloomberg poll estimated net profit of Rs 140 crore for Colgate this Q3.
Total income from operations stood at Rs 991.22 crore this Q3, declining by 8.38% year-on-year (YoY) and 17.61% quarter-on-quarter (QoQ) basis.
However, gross margins expanded by 40 basis points yoy, said Colgate.
Bachaalani feels gradual pick up will be witnessed in the market once the liquidity situation improves.
He said, “Colgate continues to maintain its leadership stance in the market. Our business fundamentals remain very strong with the consumer being at the heart of everything we do. We continue to deliver insight-driven innovations while driving sustainable growth and furthering the cause of oral health in India.
At 3.10 pm, shares of Colgate tanked over Rs 19 or 2.18% on BSE, trading at Rs 878.50 per share.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
03:33 PM IST