Brand Marketing
FMCG firms cut senior roles by 32%; Total headcount shrinks 9.26% in FY25
Colgate CEO Noel Wallace ‘not pleased’ with India sales slump, eyes fix at entry price point
Speaking during the earnings call, Noel Wallace-Chairman, CEO & President, Colgate-Palmolive flagged two straight quarters of decline in India. The executive said Rs 10– Rs 20 pack strategy is being reworked to revive growth in a key emerging market.
Noel Wallace expressed disappointment and pointed out gaps in price pack strategy as company works to correct entry-level offerings.
Colgate-Palmolive's global chief executive Noel Wallace has expressed clear dissatisfaction with the company’s recent performance in India, where sales have declined over the past two quarters.
Speaking during the company's Q2 2025 earnings call, Wallace said, “I’m not pleased” with the trajectory of the India business, noting that the FMCG major is working to correct key gaps in its pricing strategy.
"...a little softer (performance in Asia market) than we expected as volume and pricing came in weaker... And we're not pleased really with the performance we had in India, but we feel good about where we're headed in the back half.."
Explaining more on the Indian business, the executive said, "On India, we saw some sluggishness in the urban class of trade. We will certainly address that as we move into the back half through a very stepped up innovation strategy. We're relaunching our biggest core business in India as we speak.
We've introduced and relaunched the Colgate Total line in India as we speak, and we have some more higher-end premium innovation coming through the back half and into 2026.
So getting the urban markets executing more effectively there is critically important. Pleasingly, we're seeing great growth through our e commerce business there. We're up over 500 basis points in market share in e-commerce. As that trade class grows, we'll see some tailwinds come from that."
Wallace pointed to issues in the brand’s 'price pack architecture', particularly at the opening price point of Rs 10, which have impacted volume growth in value-conscious emerging markets like India.
“Getting the price pack architecture right on that is critically important,” he said, adding that the company has now completed work on its Rs 20 product range to better address consumer needs at the base of the pyramid.
Despite this course correction, Colgate’s India sales have continued to face headwinds amid weak category growth and cautious consumer sentiment.
Colgate-Palmolive last month announced its first quarter earnings for the fiscal year 2026. The toothpaste brand's profit declined by 11.8% in the quarter ended on 30 June 2025.
The company clocked a profit of Rs 321 crore in Q1 FY26 compared to Rs 364 crore in Q1 FY25. On a sequential basis, Colgate India's profit dropped by 9.5% . During the March quarter (Q4 FY25), the company posted a profit of Rs 355 crore.
According to Colgate India's Managing Director and CEO Prabha Narasimhan, the Q1 FY26 result has been impacted due to the persistent headwinds, such as subdued urban demand and elevated competition.
The company's net sales have also dropped by 4.3% year-on-year. Narasimhan noted that net sales has grown at a 12% CAGR in base year same period (Q1FY23-Q1FY25).
In Q1 FY26, its revenue from operations stood at Rs 1,421 crore compared to Rs 1,486 crore in Q1 FY25.
Amid the decline in profit and revenue, the oral hygiene brand also slashed its total advertising expenses by 5.5% to Rs 188.41 crore between April and June quarter FY26. Last year, Colgate had spent Rs 199.07 crore on advertising in Q1.
Wallace further noted, "But overall, executing better in the urban, keeping the rule and getting the core brands relaunched... We also have some price pack architecture that needed to be addressed at the entry price point.
And we had done we had completed on the Rs 20 part of our business, but the Rs 10, which is the entry price point, wasn't addressed, and we're addressing that as we speak. So we're optimistic that we'll see the benefits of that come in the second half."
Overall, Wallace said the company saw a slight rebound in April and May, but category demand softened again in June. He remains optimistic, however, that demand will normalize as macroeconomic conditions stabilize.
The CEO emphasized a dual strategy to revive performance: investing in smaller, affordable packs for price-sensitive consumers while simultaneously pushing premium innovation such as the relaunch of Colgate Total and new whitening products to drive top-end growth.
India, a key emerging market for Colgate-Palmolive, has historically been a growth engine for the oral care giant. With affordability and accessibility remaining critical to rural and mass-market penetration, the global giant appears to be recalibrating its pricing and promotional playbook to stay relevant in an increasingly competitive landscape.
During the earning call, Wallace also touched on broader structural reforms, including a global productivity initiative aimed at saving $200–300 million over three years to reinvest in growth, digital capabilities, and AI-led retail optimization.
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