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Colgate Palmolive ups annual ad spend by 16.14% amid slowdown

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MUMBAI: Dental and healthcare company Colgate Palmolive has increased its annual ad spend by 16.14 per cent for the fiscal ended 31 March 2012.

The company spent Rs 2.63 billion on advertising and promotions, compared to Rs 2.26 billion it spent in the previous fiscal.

The increase in advertising expenditure helped Colgate record volume growth of 12 per cent, mainly led by toothpaste category (14 per cent volume growth). The toothpaste category commanded 54 per cent of the market share by volume, while its mouthwash category occupied 26.2 per cent.

The annual ad spend accounted for 9.37 per cent of the total income during the fiscal.

Colgate?s annual income of Colgate increased by 17.8 per cent as the company earned Rs 26.93 billion in the fiscal compared to Rs 22.86 billion a year ago. Net profit also surged 10.65 per cent to Rs 4.45 billion.

Among the other major FMCG companies, Dabur had spent Rs 6.6 billion on ads and promotion while HUL spent Rs 26.96 billion during the fiscal. Marico, on the other hand, invested Rs 1.19 billion on advertising and promotions.

For the quarter ended 31 March, Colgate?s ad spend amounted to Rs 583.2 million. This was 14.31 per cent higher than spends in the corresponding quarter of the previous fiscal (Rs 510.2 million).

In the first, second and third quarters of the fiscal, Colgate had spent Rs 937.9 million, Rs 1.14 billion and Rs 1.07 billion respectively on advertising and promotions.

Total revenue for the fourth quarter was at Rs 7.03 billion, 17.5 per cent up from Rs 5.98 billion. Profit rose 14.65 per cent to Rs Rs 1.31 billion.

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