Published Online:September 2025
Product Name:The IUP Journal of Case Folio
Product Type:Article
Product Code:IJCF010925
DOI:10.71329/CaseFolio/2025.25.3.6-16
Author Name:Narsimhulu Siddula and D Satish
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:6-16
Colgate-Palmolive (India) Ltd (CPIL), one of India’s oldest personal care fast-moving consumer goods (FMCG) companies, achieved a major milestone in 2022 with its sales crossing 50,000 mn. It recorded a modest profit growth of 4.1%. But the financial performance of CPIL was overshadowed by a record dividend payment of 40 per share. CPIL had steadily increased its dividend payout from 2019-20, reaching100 percent for the year 2021-22. Despite constantly innovating and building some of the biggest brands, CPIL witnessed a lower rate of sales and profit than its peers. The company was also facing huge competition from other global majors as well as from companies like Patanjali and Dabur, which had positioned themselves as green and as using natural ingredients. At the same time, the company had also seen a reduction in fixed assets and capital expenditure. In this paper, a vertical and horizontal analysis of the financial statements has been conducted to check if they reveal a certain trend of the past performance and also help predict the company's immediate future performance.
Colgate-Palmolive (India) Ltd, (CPIL) one of India’s oldest personal care fast-moving consumer goods (FMCG) companies, achieved a major milestone in 2022 with its sales crossing 50,000 mn. The milestone was achieved on the back of 4.1 profit growth, a strong EBITDA of 31%, and a gross margin of 67%. However, the strong financial performance of CPIL was overshadowed by the announcement of a record dividend of 40 per share.i While the company had declared more than 90% of its earnings as dividend from the financial year 2019-20, the year 2021-22 saw a dividend payout of 100 percent.