Colgate-Palmolive Q3 PAT declines by 43 pc at Rs 66.2 cr

Mumbai, Jan 31 (PTI) FMCG firm Colgate-Palmolive (India)today posted 43 per cent decline in profit after tax atRs 66.2 crore in the quarter ended December 31, 2010 due toinvestment in brand and advertising activities.

The PAT stood at Rs 116.39 crore in October-Decemberperiod in FY 10, the company said in a filing to the BombayStock Exchange (BSE).

However, the company''s total revenue was up by 12.85 percent at Rs 576.64 crore in the third quarter compared to Rs510.95 crore in the corresponding period last year, it said.

"During the quarter, the company continued to invest inits brand and equity-building activities with advertising andsales promotion expenditure at Rs 120.59 crore as against Rs75.28 crore for the same period of the previous year.

"This additional investment, coupled with the lowerdeduction under the Income Tax Act on the profits of the Baddimanufacturing facility, has resulted in lower PAT and earningsper share for the quarter," the filing said.

During the quarter, the firm achieved a volume growth of12 per cent over the same quarter of the previous year led bya strong 13 per cent growth in the toothpaste category,enhancing its leadership position by registering a 53.4 percent volume market share for January-November 2010, against52.3 per cent in same period in previous fiscal.

"The company''s continued investment in the brand andequity building activities has strengthened its leadership inthe oral care category, resulting in a consistent double digitvolume growth over the last 11 quarters," Colgate-Palmolive(India) Managing Director Mukul Deoras said. .

Deoras said the company is making every effort to achieve cost effectiveness during an inflationary environment byensuring that it remained competitive in the market placethrough judicious pricing actions, he said.

The flagship brands - Colgate Dental Cream, ColgateSensitive, Active Salt, Max Fresh and Colgate Total continuedto contribute to the strong volume growth.

In the toothbrush category, the company witnessed asteady volume growth of 24 per cent over the same quarter ofthe previous year.