Colgate Palmolive Ltd (PSX: COLG) yesterday presented its nine-month result for the financial year 2016.
During the period under discussion, COLG has witnessed 4 percent year-on-year improvement in its sales. After showing a decline in top line in the first quarter of FY16, the company came back quite well in the last two-quarters. The Director's Report is not available but historically oral health division contributes larger share in revenue since Colgate is the market leader in oral health in Pakistan.
In recent years, however, the dishwasher segment has also started to perform well. The fabric detergent division, on the other hand, is still a week spot for the consumer giant. Despite the fact, COLG has invested considerably in the struggling sector, but the competition is growing from Unilever and others.
Colgate Palmolive Ltd has benefited from the favourable cost of raw materials due to the decline in commodity price.
The drop in revenue cost has helped COLG to improve its gross profit margins for the period.
The company had to spend higher on sales promotion and advertisement during the period to offset the growing competition in the consumer market.
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