BENGALURU (Reuters) - Colgate-Palmolive (NYSE:CL) (India) reported quarterly profit above market estimates on Thursday, benefiting from price increases it had implemented to counter the blow from a surge in raw material costs.
Consumer packaged goods makers across the globe have jacked up prices of everything from toothpaste to coffee as the Russia-Ukraine war and global supply snarls led to an increase in the price of commodities, including palm oil, cocoa and crude oil.
The price increases drove profit at Colgate-Palmolive around 3% higher from a year earlier to 2.78 billion Indian rupees ($33.51 million). Analysts on average had expected 2.75 billion rupees, according to IBES data from Refinitiv.
The Indian arm of U.S. consumer goods major also said there was strong demand for its Colgate toothpaste variants Strong Teeth, MaxFresh and Active Salt, while demand for its newly launched Visible White O2 also held up.
Sales increased nearly 3% to 13.78 billion rupees.
At a time when inflation-hit consumers are looking for ways to save cash, the toothpaste maker remains "cautiously optimistic on the overall growth trend, especially in rural," Colgate-Palmolive Managing Director Prabha Narasimhan said.
The recent easing of commodity prices, however, will boost profits for consumer majors from Colgate-Palmolive to Hindustan Unilever (NYSE:UL) even as analysts tip them to funnel savings towards product launches and advertising.
Colgate-Palmolive said it has lined up new launches after having introduced a charcoal-based toothpaste in the reported quarter. It also announced an interim dividend of 18 rupees per share.
($1 = 82.9625 Indian rupees)