Colgate: Sales revival remains elusive (CLGT IN, Mkt Cap USD5.3b, CMP INR1603, TP INR1620, 1% Upside, Neutral) CLGT's 2QFY23 sales were in line with our estimates. Gross margin contracted higher than expected; however, lower advertisement costs led to in-line EBITDA. The management highlighted that 2QFY23 saw healthy sales momentum on the back of focused positioning of festive season initiatives. It remains cautiously optimistic of improving its overall growth trends, including in rural Ind...
CLGT's 1QFY23 sales and gross profit were in line. Higher than forecasted other expenses led to an EBITDA miss. The management said 1QFY23 was impacted by a slowdown in rural India and inflationary pressures. It remains cautiously optimistic of improving trends in coming quarters. While we await the response of re-launches/launches and the strategy under the new CEO, the core issue of lack of sales growth (caused by high category penetration, especially when allied with the fact that CLGT ha...
The general evaluation of COLGATE-PALMOLIVE INDIA (IN), a company active in the Personal Products & Services industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 1 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date November 26, 2021, the c...
COLGATE: Sales growth remains tepid; outlook weak (CLGT IN, Mkt Cap USD5.6b, CMP INR1533, TP INR1690, 10% Upside, Neutral) CLGT’s 2QFY22 result was in line with our estimates. Two-year average sales growth, at 5.2% in 2QFY22, continues to remain in the 4-6% range seen in recent quarters, with little indication of an improvement, despite consistent advertising spends. With: a) the launch of the Non-Oral Care portfolio, and b) investments under the ‘brush twice a day’ campaign seemingly ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
COLGATE: Continued weak sales growth; weak outlook ahead (CLGT IN, Mkt Cap USD6.3b, CMP INR1709, TP INR1770, 4% Upside, Neutral) Colgate-Palmolive (CLGT)’s weak sales growth trend has persisted in recent quarters. In 1QFY22 as well, the two-year average sales growth was at the lower end of the 4–6% range seen in recent quarters. It has now been six years since the company reported over 7% sales growth in any year. With (a) the launch of the Non-Oral Care portfolio and (b) investments unde...
Q3FY20 result highlights Net sales grew by 4.1% yoy to Rs11.4bn (est: Rs11.35bn), EBITDA (including other operating income) grew by 1% yoy to Rs3.16bn (est: Rs3.09bn), PBT fell by 5% yoy to Rs2.67bn (est: 2.65bn) while reported PAT grew by 4% yoy to Rs1.99bn. Adj for tax reversal, PAT grew by 9% yoy. Domestic sales increased by 4.3% yoy with a volume growth of 2.3% yoy (est: 4%). Gross margins were up 60bps yoy at 65.7%, better than our expectations on account of benign input cost. Staff c...
(CLGT IN, Mkt Cap USD5.3b, CMP INR1396, TP INR1733, 24% Upside, Buy) While sales, EBITDA and PAT were either in line or ahead of our estimates, CLGT delivered a miss on volumes (growth of 2% YoY v/s our estimate of 5%). However, the impact of volumes at the sales level was offset to some extent by higher realizations. Muted volume growth and near-term concerns about low category growth drive a sharp cut in our EPS forecasts. However, we remain optimistic on the medium-term earnings prospe...
COLGATE: Poised for strong earnings growth over medium term; Inexpensive valuations bolster upside potentialCOLGATE: Poised for strong earnings growth over medium term; Inexpensive valuations bolster upside potential(CLGT IN, Mkt Cap USD5.7b, CMP INR1488, TP INR1815, 22% Upside, Buy)We recently met Colgate's (CLGT) management to understand its strategy to drive growth amidst changing market dynamics. Key highlights:** CLGT's market share has been stable over the past few quarters.** Volume growt...
COLGATE-PALMOLIVE INDIA: Brushing up on some history(CLGT IN, Mkt Cap USD5.9b, CMP INR1534, TP INR1815, 18% Upside, Buy) Revisiting successful impact of management change in India listed consumer MNCs ** Colgate-Palmolive India (CLGT) saw a change at the managing director (MD) level from 1st Aug'19. We believe that this change is promising based on prior examples seen at listed consumer MNCs in India. CLGT's peers such as HUVR, NEST and PGHH had witnessed significant underperformance in the pa...
Q2FY20 result highlights Net sales grew by 4.5% yoy to Rs12.13bn (est: Rs11.95bn), EBITDA (including other operating income) fell by 2% yoy to Rs3.23bn (est: Rs3.6bn), PBT fell by 7% yoy to Rs2.78bn (est: 3.17bn) while reported PAT grew by 24% yoy to Rs2.44bn (est: Rs2.65bn); Adj for change in tax rate PAT fell by 7% yoy. Domestic sales increased by 5% yoy with a volume growth of 4% yoy (est: 3%). Gross margins was flat yoy at 64.5%, despite subdued input costs; but came in 100 bps lower th...
Q1FY20 result highlights Net sales increased by 4.1% yoy to Rs10.76bn (est: Rs10.85bn), EBITDA (incl op income) increased by 6% yoy to Rs2.99bn (est: Rs2.87bn), Adjusting for one-off gain of Rs341m in base quarter, PAT increased by 5% yoy to Rs1.69bn (est: Rs1.67bn). Domestic rev. grew by 6% yoy led by volume growth of 4% yoy (est: 5%) but poor exports led to overall rev. growth coming in at 4.1% yoy. Despite higher base, gross margins was flat yoy at 65.6% (est:64.7%) led by benign input c...
COLGATE: Demand moderation temporary; expect recovery soon (CLGT IN, Mkt Cap USD4.7b, CMP INR1203, TP INR1400, 16% Upside, Buy) CLGT's revenue increased 4.2% YoY to INR10.8b (our estimate: INR11.2b). EBITDA grew 6.5% YoY to INR3b (our estimate: INR2.8b). Adj. PAT was up 1.3% YoY to INR1.7b (in-line). Domestic sales grew 6% YoY, led by 4% volume growth (our estimate: +6%). Gross margin shrank 10bp YoY to 65.9% (our estimate: 64.8%). Higher staff costs (+50bp YoY) and ad spends (+20bp YoY...
Q4FY19 result highlights Net sales increased by 5.7% yoy to Rs11.5bn (est: Rs11.7bn) while EBITDA (incl. op income) increased by 1% yoy to Rs3.1bn (est: Rs3.4bn), Adjusted PAT increased by 1% yoy to Rs1.8bn (est: Rs1.98bn). Reported PAT was up 5% yoy to Rs1.97bn. Domestic volumes increased by 5% yoy (est: 7%). Overall volumes increased by 3% yoy Gross margins were down 120bps yoy basis (down 60bps qoq) at 64.3% impacted by higher input costs and higher promotions. Staff cost declined by 3%...
Colgate: Market share stability attained, but near-term margins under pressure (CLGT IN, Mkt Cap USD4.6b, CMP INR1182, TP INR1375, 16% Upside, Buy) CLGT's volumes grew 5% YoY (our estimate: +6%) in 4QFY19. Net sales increased 5.7% YoY to INR11.5b (our estimate: INR11.9b). EBITDA was up 0.9% YoY to INR3.1b (our estimate: INR3.4b), while adj. PAT increased 1.7% YoY to INR2b (our estimate: INR2b). FY19 performance: Sales grew 6.6% (with ~5% toothpaste volume growth). EBITDA and adj. PAT wer...
Q3FY19 result highlights Net sales increased by 6% yoy to Rs10.9bn (est: Rs10.9bn), EBITDA (incl op income) increased by 11% yoy to Rs3.1bn (est: Rs3.1bn), Adjusted PAT increased by 12% yoy to Rs1.8bn (est: Rs1.78bn). Reported PAT was up 13% yoy to Rs1.9bn. Overall volumes increased by 7% yoy (est:5%) Gross margins were flattish on yoy basis (up 40bps qoq) at 64.9% impacted by higher input costs. Staff cost declined by 5% yoy, other expenses increased by 5% yoy and advertising expense were...
Colgate: Healthy volume growth; Operating margins above expectations (CLGT IN, Mkt Cap USD5.1b, CMP INR1322, TP INR1540, 16% Upside, Buy) CLGT posted healthy volume growth of 7% YoY (est. 4% growth) in 3QFY19. Net sales came in line growing 6.4% YoY to INR11b (est. INR11b). EBITDA was up 11.2% YoY to INR3.1b (est. INR2.9b), while Adj. PAT grew 12.6% YoY to INR1.9b (est. INR1.8b). Market share for toothpaste and toothbrush category was reported in the quarterly results this time around. ...
Q2FY19 result highlights Net sales increased by 8% yoy to Rs11.6bn (est: Rs11.5bn), EBITDA (incl op income) increased by 10% yoy to Rs3.3bn (est: Rs3.3bn), Adjusted PAT increased by 9% yoy to Rs1.9bn (est: Rs1.95bn). Reported PAT was up 11% yoy to Rs1.96bn. Overall volumes increased by 7% yoy (est:5%) Gross margins improved by 130bps yoy to 64.5%. Staff cost declined by 7% yoy, other expenses increased by 14% yoy and advertising expense were up 17% yoy basis (up 90bps yoy as a % to sales to...
Colgate: In line with low expectations; recovery uncertain for now (CLGT IN, Mkt Cap USD4.1b, CMP INR1106, TP INR1340, 21% Upside, Buy) CLGT delivered volume growth of 7% YoY (our estimate: +5%) in 2QFY19 off a low base (1% decline in 2QFY18). Net sales grew 7.7% YoY to INR11.7b (our estimate: INR11.8b). EBITDA increased 9.5% YoY to INR3.3b (our estimate: INR3.3b). Adj. PAT grew 10.6% YoY to INR1.96b (our estimate: INR2b). Toothpaste market share increased marginally by 10bp QoQ (-150bp...
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