Unchanged volume trend; margins at all-time high

23 Jan 2024
5 Min read 
  • Colgate (CLGT) reported a healthy price-led revenue growth of 8% YoY in 3QFY24.
  •  Overall volumes experienced a marginal decline, with toothpaste showing flat to positive growth.
  •  The company implemented a price hike, particularly in the premium segment, in 2QFY24.
  •  CLGT achieved a record gross margin of 72.2% due to softening raw material costs and higher prices.
  •  EBITDA margin expanded by 550bp YoY to 33.5%.
  •  Challenges are anticipated in FY25, with limited opportunities for volume growth and potential margin pressure.
  •  The stock is rated as Neutral with a target price of INR2,400.
Login / Open Demat Account to read the report

Never Miss Out on Hot Market Updates

Get exclusive market news delivered to your inbox - on priority