Colgate's ad expenses rise by 7.14% to Rs 180 crore; Profit declines to Rs 355 crore in Q4FY25

Colgate-Palmolive (India) Ltd. reported a 6.3 percent decline in net profit for the quarter ended March 2025, as the consumer goods giant grappled with slowing urban demand and mounting competition, despite higher spending on advertising.

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The company posted a net profit of Rs 355 crore for the fourth quarter of fiscal year 2025, down from Rs 379 crore in the same period a year earlier. Revenue for the quarter fell 1.92 percent to Rs 1,452 crore, compared with Rs 1,480.6 crore in the prior year’s quarter.

Advertising expenditures rose 7.14 percent year-on-year in the quarter, reaching Rs 180 crore, up from Rs 168 crore a year earlier. For the full fiscal year, ad spending climbed to Rs 822 crore from Rs 760 crore in FY24.

In a statement, Prabha Narasimhan, Managing Director and Chief Executive Officer, attributed the quarterly decline to "softening urban demand and intensified competition." Nevertheless, she noted that the company’s toothbrush portfolio registered robust growth, offsetting some of the broader market pressures.

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Despite the quarterly setback, Colgate-Palmolive India recorded a profit of Rs 1,436.81 crore for the full fiscal year — an 8.5 percent increase from Rs 1,323 crore in fiscal 2024. The company said its topline revenue for FY25 grew 6.3 percent year-on-year, with its core toothpaste segment showing mid-single-digit value growth.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter stood at Rs 498 crore, down 6.4 percent from Rs 532.2 crore in the same period last year. The EBITDA margin narrowed to 34 percent from 35.7 percent.

Narasimhan emphasized that the company’s "Funding the Growth" initiative helped support margin resilience and reaffirmed Colgate’s commitment to reinvesting in the business, even as short-term macroeconomic conditions remain challenging.