Statutory Section
Dear Shareholder Family,
FY 2024-25 has been a pivotal year for Colgate-Palmolive (India) Limited, marked by progress and accelerating our SMILE-based targets. We continued executing our strategy for sustainable, profitable growth while investing for the future and scaling our capabilities. As we continue our mission of Building Good Oral Habits for Life, we are proud to see our efforts take root across homes, communities, and generations.
For over 87 years, Colgate has been at the forefront of oral health in India. As the nation's most penetrated and loved brand, we have earned the trust of millions through our legacy of innovation and science-backed solutions that cater to every single Indian's needs. We recognize that oral health, though crucial, is often overlooked in overall wellness. In a country where 55% of rural Indians don't brush daily and 80% of urban Indians don't brush twice a day, addressing this presents a significant opportunity. Improving oral hygiene can also positively impact systemic diseases like diabetes, cardiovascular conditions, and respiratory infections, thus easing the burden on one's own health and the nation's healthcare infrastructure.
Our business fundamentals remain strong, even amidst a challenging operating environment. For FY 2024-25, our topline revenue increased by 6.3% year-on-year, with domestic Net Sales growth at 5.6% and Net Profit After Tax grew by 8.5%. Our margin remains healthy and resilient, underpinned by our Funding-the-Growth program. We increased advertising spending by 7% in FY 2024-25 to support innovation and drive brand health and household penetration, while also improving efficiency.
The Toothpaste portfolio recorded mid-single-digit value growth, and our Toothbrush portfolio delivered another year of robust growth.
We leveraged strong margins to significantly invest in brand building. Our sharp focus on cash flow is paying off, with operating cash flow increasing 10% to a record level in FY 2024-25. We maintained a strong balance sheet, and the Board authorized an increased quarterly cash dividend. We declared a First Interim Dividend of INR 24 per share in Q2 FY 2024-25, and a Second Interim Dividend of INR 27 per share in Q4 FY 2024-25, totaling INR 51 per share for FY 2024-25.
We have made gains at every level. In urban markets, premiumization led the way, powered by innovations in whitening, freshness and gum care. We introduced Colgate Visible White Purple for our growing whitening business, making it one of our most successful innovations in the last decade and the new MaxFresh Sensorial range for unique sensory experiences as well as the revamped Lemon Fresh. These solutions are helping us reposition brushing as a form of self-care, moving beyond routine to aspiration.
We relaunched Colgate Strong Teeth offering a superior sensory experience in key geographies. Colgate Total Plaque Release Toothpaste was introduced featuring advanced Amino foam and Zinc technology. Colgate Total's new regimen, including a new toothbrush, offers comprehensive, sciencebacked oral health care.
India is many markets, not just one. Our ability to win lies in our tiered approach, sharpening focus by segment, geography, and price point
In data and analytics, we are driving measurable value through RGM analytics, optimizing media spend and promotion planning, and saving costs through automation. Our AI-led execution, generating SKU-tostore recommendations monthly, has improved on-shelf availability, strengthened retail partnerships, and enabled quick response to shifts in consumption and commerce. Our ability to serve the right product through the right channels, at the right time, remains unmatched. We pride ourselves on having the highest retail store availability of any oral care brand, a direct result of our robust sales force of CPIL employees, partner stockists and an on-ground team of more than 5,000 individuals who tirelessly drive this presence every single day.
At our core is the mission to improve the oral health of everyone in India. This is both our fundamental responsibility and a tremendous privilege. Last year, we initiated the Colgate Oral Health Movement (OHM), a significant step towards this long-standing commitment. Backed by over 50,000 dental professionals from the Indian Dental Association (IDA) and scaled through AI-enabled technology, OHM empowered millions of Indians to self-screen their oral health through smartphones. Earlier this year, more than 4.5 million Indians took the oral screening, with a remarkable 1/6th of them visiting a dentist postscreening (IDA data). These efforts didn't just spread awareness, they are actively shaping people's behavior - when given the right opportunity, it's clear that citizens take charge of their oral health.
Education is absolutely vital to our mission, and our ® flagship Colgate Bright Smiles, Bright Futures (BSBF) program has truly been a game-changer. In FY 2024-25 alone, BSBF reached over 8.2 million children in 25,000 schools across 11 states, actively spreading vital oral health awareness. Children learned proper brushing techniques, the importance of brushing twice daily, the need for nutritious food, and the harmful effects of tobacco and smoking.
We don't do this crucial work alone. We are grateful for our partnerships with local governments that have helped us extend our reach across the country. Additionally, we collaborate with parents, teachers, NGOs, UN bodies, dental and health professionals. By combining our expertise, we accelerate progress, ensuring prevention and good oral hygiene remain top health priorities. Since its inception, this impactful in-school program has reached over 185 million children and their families across India. Going forward, we are committed to reaching over 10 million children year-on-year, laying the foundation for a generation that understands and gives importance to oral health from an early age
We envision a future where oral health is prioritized through a concerted, policy-driven approach, ultimately opening doors to a healthier life for everyone. Our state-level Public-Private Partnerships ® (PPPs) for the Colgate Bright Smiles, Bright Futures (BSBF) program are already paving the way, effectively collaborating with education and healthcare departments in states like Uttar Pradesh, Goa, Assam, Maharashtra, and Andhra Pradesh. This ongoing work is effectively delivering results, demonstrating the power of collective action.
Our growth story is also one of responsibility. This year, we made meaningful strides across our sustainability agenda. We are proud that our Toothpaste portfolio has transitioned to recyclable tubes, on track for 100% recyclability by the end of 2025. We expanded renewable energy use, with 33% of energy across our factories now sourced from renewables.
We achieved over 100% plastic waste collection under EPR, maintaining our commitment to plastic neutrality. Our water stewardship has benefited over 122 villages, with a cumulative impact of 427 million liters of water ® since 2018. All our manufacturing units upheld TRUE Zero Waste to Landfill certification.
Sustainability remains integral to how we operate and win. We are proud to drive progress on environmental goals while creating real value for society and our shareholders.
Finally, yet importantly, Diversity, Equity, and Inclusion (DE&I) is fundamental to our success, fostering an environment where every team member is respected and empowered to thrive. We believe this rich tapestry of unique perspectives not only fuels innovation but also builds the leaders of tomorrow, ensuring continuous learning and growth for all.
Last year, we enhanced our supporting caregiver leave to 12 weeks, championing equal parenting. We are delighted that this year, 25 of our male employees embraced this opportunity, actively supporting their partners in early childcare. It's a testament to our shared values and a joy to see our policies making a real difference in their lives.
As India's most penetrated FMCG brand, our role extends beyond product access. We are driving awareness, embedding oral care as a lifelong habit, knowing that every smile we protect builds a healthier, more confident tomorrow - woven into daily life, driven by science, and fueled by purpose.
Our roadmap is clear. We will deepen category penetration through habit formation and consumer education. We will accelerate premiumization through science-led innovation, elevating care and experience. We will expand our product portfolio to meet evolving consumer needs, including select global personal and home care offerings. Finally, we will continue leveraging technology, data, and AI to stay agile and precise. As we enter FY 2025-26, we do so with renewed energy and belief that smiles are symbols of health, opportunity, dignity, and progress.
Thank you for your trust, partnership, and belief in our journey. Together, we are building a future where every Indian smiles with confidence, every day, for life.
Best Wishes,
Prabha Narasimhan
Managing Director and Chief Executive Officer
DIN: 08822860
