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Despite
these reductions which affected approximately 65 per cent
of company sales, net sales (excluding excise duty) for
2003-04 were Rs. 939 crore, only marginally lower than
Rs. 947 crore for the previous year. The market response
to the aggressive price reduction in tooth pastes has
been encouraging, and the resultant volume growth coupled
with the success of on-going cost rationalisation and
productivity improvement programs have enabled the company
maintain sales and deliver record profits to its shareholders.
During the year, the toothpaste
portfolio was further strengthened with the re-vitalisation
of the flagship brand "Colgate Dental Cream"
to offer superior germ fighting efficacy and "Colgate
Fresh Energy Gel" with intense new flavours that
deliver long-lasting fresh breath. The toothpaste range
was expanded with the launch of "Colgate Herbal White"
for pearly white teeth naturally. In the toothbrush category,
Colgate launched India''s first battery powered toothbrush
for kids - "Colgate Motion Kids". The company''s
personal care offerings were significantly expanded with
the "Palmolive Aroma" range of toilet soap,
liquid hand wash, shower gel and talcum powder.
Across the categories, brand
and business building exercises were complemented with
innovative consumer promotions that encouraged trial,
increased consumption and rewarded consumer trust and
loyalty. "Colgate" was rated the most trusted
brand in India in the Brand Equity survey across all brands
and categories. "Colgate" has been the only
brand to be consistently ranked in the top 3 in all the
surveys conducted by Brand Equity.
The company''s focussed programs
and concerted efforts to reduce operational costs and
improve efficiencies continue to be a key contributor
to the growth in operating profit (EBITDA) ratio which
has increased by 170 basis points to 14 per cent of sales.
EBITDA and net profit for the year grew by 12 per cents
to Rs. 146 crore and by 22 per cent to Rs. 108 crore respectively.
During the year, the company
paid three interim dividends aggregating to 60.00 per
cent i.e. Rs. 6.00/share. This included a one-time special
25th anniversary dividend of 12.5 per cent i.e. Rs. 1.25/share.
In 2002-03 the company paid two interim dividends aggregating
to 42.5% i.e. Rs. 4.25/share. No final dividend has been
recommended for the current year ended March 31, 2004.
The
board of directors of the company at their meeting to-day
declared a first interim dividend of 15 per cent, i.e.
Rs.1.50/share for the year ending March 31, 2005, payable
on or about July 23, 2004.
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