The Hindu : Business : 15 p.c. interim from Colgate-Palmolive

Online edition of India's National Newspaper
Wednesday, Jun 30, 2004

Business

Business

15 p.c. interim from Colgate-Palmolive

By Our Staff Correspondent

MUMBAI, JUNE 29. Colgate-Palmolive (India) has announced a record net profit of Rs. 108 crores for the year ended March 31, 2004, up 22 per cent over the previous year's figure of Rs. 88 crores.

The company paid three interim dividends during 2003-04 aggregating 60 per cent. This included a one-time special 25th anniversary dividend of 12.5 per cent.

The board of directors at its meeting here today declared a first interim dividend of 15 per cent for the year ending March 31, 2005, payable this month.

The company's earnings before interest, deprecation and tax were up 12 per cent at Rs. 146 crores.

According to the company, the market environment remained sluggish and competitive, particularly in the low priced toothpaste segment in 2003. In an aggressive bid to re-ignite market and brand growth in the first quarter of 2003-04, the company reduced the prices of its flagship brand, Colgate Dental cream. Also, Colgate Cibaca prices were reduced.

Despite these reductions, which affected about 65 per cent of the company's sales, net sales for the year were Rs 939 crores (Rs 947 crores).

The market response, the company claims, has been encouraging and the resultant volume growth coupled with the success of on-going cost rationalisation and productivity improvement programmes has enabled the company to maintain sales and deliver record profit.

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