Colgate-Palmolive India Raises Ad Spend 34% in Q1 as Revenue, Profit Grow
Colgate-Palmolive India increased advertising spend by 34% in Q1 FY27 as revenue and profit grew, backed by premiumisation and product innovation.
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Colgate-Palmolive (India) Ltd, a major player in the oral care space, significantly increased its advertising and promotional investments in the first quarter of FY27, highlighting its focus on brand building, innovation and premiumisation even as it reported robust growth in revenue and profit.
During the April-June quarter, the company spent ₹251.8 crore on advertising and promotions, up 33.6% from ₹188.4 crore in the year-ago period.
Revenue from operations grew 12% year-on-year to ₹1,590.5 crore against ₹1,420.6 crore a year ago. Net profit grew 6.8% to ₹343 crore as against ₹320.6 crore in the same quarter of previous fiscal year.
The total expenses for the quarter rose 13.8% to ₹1,160.5 crore aided by higher operating costs and investments in marketing.
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Commenting on the results, Prabha Narasimhan, Managing Director and CEO, Colgate-Palmolive (India) said the company is focused on sustainable growth backed by science-led innovation and continued investment in its brands. "Going forward we expect to grow sustainably, fuelled by our best-in-class science-backed products, supported by continued investment in advertising," she said.
The company's toothpaste portfolio delivered strong high single digit volume growth driven by strong demand for premium toothpaste, while the core portfolio continued to post steady growth, Narasimhan said.
She added that Colgate improved profitability through its "Funding the Growth" programme and disciplined cost management. Gross margin expanded 110 basis points year-on-year to 69.7%, giving the company room to increase investments in brand building and category premiumisation.
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"We leveraged these strong margins to increase our focused investments in brand building and category premiumisation throughout the quarter," she said.
Despite geopolitical uncertainties and volatility in commodity prices, Narasimhan said Colgate would continue to protect profitability through productivity initiatives and calibrated pricing actions.
"We remain focused on actively managing our margin profile through a combination of cost savings initiatives and calibrated pricing actions," she added.
