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Back in 1937, Colgate palmolive set foot in India, and today, it stands tall as the nation’s most trusted oral care brand. But rewind to 1806, and you’ll find William Colgate starting a small venture on Dutch Street in New York City dealing in starch, soap and candles. Fast forward to now, when saying “ek Colgate dena” has become second nature whenever someone needs toothpaste. This level of brand recall is a source of immense pride for any company, and in this article, we’re going to explore this sentiment by taking a close look at Colgate Palmolive Share business journey, financials and the returns it brings to its shareholders.
A Glimpse into Colgate Palmolive’s History
What Colgate Palmolive Offers:
Colgate Palmolive isn’t just about toothpaste it’s a global company dedicated to improving the health and well being of people and pets. With a focus on Oral Care, Personal Care, Home Care and Pet Nutrition the brand has made its mark in over 200 countries.
Market Dominance:
Colgate Palmolive doesn’t just make toothpaste, it dominates the oral care market with a 51% share in toothpaste, 48% in toothpowder and 30% in toothbrushes. This tells you just how much people trust and prefer their products.
Colgate Palmolive Geographical Revenue Breakup:
While the company originated in the United States, its impact is felt globally. Despite a strong presence in India where it earns around 96% of its revenues, Colgate Palmolive also exports to various countries making up the remaining 4%.
E-commerce Presence:
Adapting to the digital age, Colgate’s products are readily available on major ecommerce platforms in India.
Manufacturing Capabilities:
The backbone of Colgate’s success lies in its state of the art manufacturing facilities. With plants in Himachal Pradesh, Goa, Gujarat and Andhra Pradesh, covering an impressive 3,64,600 sqm collectively, the company ensures the quality and availability of its products.
Colgate Palmolive Stock Returns Over Various Periods
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If you’re a shareholder of Colgate Palmolive share, it’s important to note the positive trends in the company’s share value. Over the past year there has been a solid 18% increase. Looking back over two years the growth remains positive at 14%. Stepping up to three years shareholders experienced a 47% increase in their investment. For those with a longer term perspective five year return stands at a respectable 37% showcasing consistent value appreciation over the years.
Colgate Palmolive Share Key Financial Metrics
| Company Essentials | Value |
|---|---|
Market Cap | ₹ 62,964.67 Cr. |
Face Value | ₹ 1 |
Current Price | ₹ 2,315 |
52 Week High | ₹ 2,312 |
52 Week Low | ₹ 1,434.60 |
Industry P/E | 62.90 |
Stock P/E | 53.67 |
P/B | 35.71 |
Div. Yield | 1.71% |
Debt | ₹ 0 Cr. |
EPS (TTM) | ₹ 43.13 |
Colgate Palmolive Share Cash Flow (value in Cr.)
The table below presents Colgate’s cash flow over the past four years and provides insights into its financial dynamics.
- In terms of operating activities, the company demonstrated a positive trend, generating ₹929.58 Crore in March 2020, ₹783.86 Crore in March 2021, ₹1,625.73 Crore in March 2022, and ₹1,176.26 Crore in March 2023. These figures represent the cash generated or used in the core business operations.
- However, investing activities reveal Colgate's strategic moves where in March 2020, the company invested -₹18.66 Crore, while in March 2021, it received ₹71.35 Crore. However, in March 2022 and March 2023, Colgate made investments of -₹107.64 Crore and -₹7.55 Crore, respectively.
- Financing activities involving transactions with owners and creditors saw negative values over the years. In March 2020, financing activities amounted to -₹891.10 Crore, followed by -₹956.46 Crore in March 2021, -₹1,090.60 Crore in March 2022, and -₹1,086.73 Crore in March 2023.
- Considering all these activities, the net cash flow for Colgate has varying trends. In March 2020 it has showed a positive flow of ₹19.82 Crore, followed by negative flows in March 2021 (-₹101.24 Crore). However, the trend reversed with positive flows of ₹427.49 Crore in March 2022 and ₹81.99 Crore in March 2023.
| Particulars (Standalone) | Mar 2020 (Cr.) | Mar 2021 (Cr.) | Mar 2022 (Cr.) | Mar 2023 (Cr.) |
|---|---|---|---|---|
Cash from Operating Activity | 929.58 | 783.86 | 1,625.73 | 1,176.26 |
Cash from Investing Activity | -18.66 | 71.35 | --107.64 | -7.55 |
Cash from Financing Activity | -891.10 | -956.46 | -1,090.60 | -1,086.73 |
Net Cash Flow | 19.82 | -101.24 | 427.49 | 81.99 |
Colgate Palmolive Stock Annual Financial Overview
Now, let’s discuss Colgate’s financial performance over the last four years to give you a clear picture of the company’s strength, especially if you’re already invested or considering an investment. This analysis will provide insights into how well the company has fared financially, offering a clearer picture of its stability and potential for growth.
Sales Growth: If we talk about the sales growth of Colgate it has been consistently positive. From March 2020 to March 2023, sales increased from 4,525 crores to 5,226 crores with growth rates of 7.0%, 5.4% and 2.5% in the respective years. This reflects a strong and sustained upward trend in Colgate’s sales performance.
Operating Profit Growth: Colgate’s operating profit witnessed a dip in March 2020 at 1,202 crores. It then surged by 25.6% in March 2021 to reach 1,510 crores in March 2022 with an operating profit of 1,566 crores. In March 2023, there was a minor decline of 1.2% resulting in an operating profit of 1,547 crores.
Net Profit Growth: Colgate’s net profit showed steady growth from 816 crores in March 2020 to 1,078 crores in March 2022. There was a notable peak in March 2021 with a 26.8% increase. However, the latest year saw a slight dip with a 2.9% decrease. Overall, Colgate has demonstrated consistent financial performance over the past four years.
Colgate Palmolive Share Key Financial Metrics
ROE Ratio:
ROE Ratio or Return on Equity, is like a report card for a company. It tells us how well the company uses the money its shareholders invested. A higher ROE means the company is good at turning shareholders’ money into profits.
- Colgate consistently demonstrated a strong performance in Return on Equity (ROE), showcasing its ability to generate profits relative to shareholders' equity. In the most recent year, the company achieved an impressive 61% ROE, and this trend extends over the past three years, maintaining a consistently high ROE of 70%. Looking at a broader five-year horizon, Colgate's financial strength remains evident, with a solid 63% ROE.
ROCE Ratio:
ROCE Ratio which stands for Return on Capital Employed is a financial measure that tells us how well a company uses its money to make more money. If a company has a high ROCE, it means it’s doing an excellent job of using its money to make profits. But if the ROCE is low, it could mean the company isn’t using its money very efficiently.
Also Read This: India’s Quick Service Restaurants (A Flavorful Journey from Past to Present)
- Beyond its commendable Return on Equity (ROE), Colgate's adept capital utilization is evident through Return on Capital Employed (ROCE). Over the past year, the company achieved an impressive 82% ROCE, indicating effective capital deployment. This efficiency extends to a three-year period, where Colgate maintained a strong 93% ROCE. Over five years, the company's financial remains the same, maintaining at 84% ROCE.
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Colgate Palmolive Stock Shareholding Pattern
Let’s try to understand the ownership structure of Colgate stock as of September 2023. Colgate’s ownership is divided among different groups. Promoters hold the majority at 51%, the public owns 19%, Domestic Institutional Investors (DIIs) have 6% and Foreign Institutional Investors (FIIs) account for 24%. This mix indicates a well rounded ownership structure with both local and global investors contributing to Colgate’s share success.
Promoter Pledging (%): 0
No Data Found
Colgate’s Strategic Moves: Beyond the Smile
1. Oral Care Focus:
- Recognizing growth potential despite widespread use.
- Targeting increased frequency of brushing and raising awareness for better oral health.
2. Toothpaste and Toothbrush Growth:
- Anticipating growth in both urban and rural areas.
- Striving to lead market expansion and elevate the overall quality of oral care.
3. Investment in Innovation:
- Commitment to science-backed products for superior oral care.
- Embracing digitalization for enhanced product offerings and operational efficiency.
4. Future Growth Prospects:
- Concentrating on driving volume and elevating market standards.
- Exploring opportunities to expand beyond oral care, with a particular focus on the personal care segment.
Final Words
Colgate Palmolive’s journey from a small venture in 1806 to India’s most trusted oral care brand is remarkable. Its financial performance reflects consistent growth and positive trends in sales, operating profit and net profit showcase its stability. Shareholders benefit from a strong Return on Equity and effective capital utilization, emphasizing the company’s financial prowess. Colgate’s strategic focus on oral care, innovation and potential expansion beyond oral care underlines its commitment to meeting evolving consumer needs.
As we discussed the details of business, finance, Colgate Palmolive share return and what lies ahead for the brand, we invite you to What could Colgate’s future mean for your investments or daily oral care habits?
Stay tuned for more engaging discussions in our future blogs. Your exploration with Colgate is far from over – because a brighter smile is just the start.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
