Karachi August 1 2023: Colgate-Palmolive (Pakistan) Limited (COLG) profit rose by 79.3 percent to PKR 10.4 billion in 2023 despite country facing acute economic crisis.
Share price of the company drops 5.52 percent or PKR 85.06 to trade at PKR 1,455.90 at Pakistan Stock Exchange on announcement of lower cash payout for the full year.
During the year, the Company's businesses continued to face macroeconomic challenges, unprecedented inflation levels, an increase in sales tax rate and significant devaluation of the Pak Rupee against the US Dollar.
To control depleting forex reserve, Banks are reluctant to open LCs even for the core raw materials of the essential manufacturing industries and your company is also facing similar issues in opening Letter of credit for import of raw materials.
In spite the above-mentioned challenges, the Company has managed to post strong revenue and profit growth driven by the combination of volume and favorable product mix changes. Gross margins of the company improved by 276 basis points to 28.4 percent in 2023.
Selling and distribution costs increased to PKR 9.2 billion in 2023 mainly due to the increase in advertising expense and fuel prices.
Company announced a final cash dividend for the year ended June 30; 2023 at PKR 5.00 per share i.e. 50 percent. This is in addition to 1st interim cash dividend already paid at PKR 20.00 per share i.e. 200 percent and by way of issue of fully paid bonus shares at 45 percent in the proportion of Nine shares for every Twenty shares of Rs.10/- each and 2nd interim cash dividend at PKR 40.60 per share i.e. 400 percent and by way of issue of fully paid bonus share at 100 percent in the proportion of One Share for every One share of Rs.10/- each.