Unchanged volume trend; margins at all-time high

Company

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.