Colgate Palmolive India, opens new tab posted a drop in fourth-quarter profit on Wednesday, as sales slowed down on softening urban demand and intensified competition.
The toothpaste maker’s net profit fell 6.5% to 3.55 billion Indian rupees ($41.51 million) in the quarter ended March 31.
Revenue from operations declined nearly 2% to 14.52 billion rupees. Expenses, meanwhile, were largely flat year-on-year.
Key context
The local arm of Colgate-Palmolive, opens new tab, known for its eponymous range of Colgate toothpastes, has been grappling with sluggish urban demand for its oral care products.
Consumer demand in rural regions has outpaced urban areas for more than a year now, helped by state-run support schemes and a strong harvest, while city-dwellers face slowing wage growth.
The company pointed to a “challenging operating environment” in the second half of fiscal 2025, which runs from April 2024 to March 2025. Its marketing and promotional expenses rose year-on-year in the fourth quarter, amid higher competition with other players.
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