Tepid growth for Colgate Palmolive Pakistan

Colgate-Palmolive (Pakistan) closed its financial year with numbers that speak to a market stuck in second gear but an operator that has learned to squeeze more from every rupee it spends. Net sales for fiscal year 2025 edged up just 2.0% to Rs116.0 billion from Rs113.2 billion a year earlier – nearly flat in real terms given inflation – but gross profit rose 10.0% to Rs40.7 billion, lifting the gross margin to 35% from 33% and signalling cost and mix efficiencies across the portfolio. Operating profit climbed 11.0% to Rs27.4 billion, while after-tax profit increased 6.0% to Rs18.4 billion. Earnings per share improved to Rs75.8 from Rs71.2, and the full-year dividend per share ticked up to Rs61.5 from Rs57.0.

The year’s final quarter told a more subdued story, underscoring the delicate balance between pricing and volume. Fourth-quarter net sales slipped 1.0% year-on-year, gross profit fell 7.0%, and profit after tax was down 17.0% versus the same three months of last year. Net margin for the full year nevertheless rose to 16% from 15%, pointing to structural gains that persisted despite a soft exit to the fiscal period. Management characterises the topline performance as “in line with inflation” for the year ahead, a hint that volume-led growth remains hard to conjure in the current consumer climate.