analyst briefing - 2021

Trusted Brands, Spreading Smiles

Analyst Briefing - 2021

2

Contents

About Colgate-Palmolive Pakistan01

Financial Highlights03Product Categories and Key Challenges04

Milestones and Achievements02

Corporate Social Responsibility05Health, Safety and Environment06Counterfeits07

3

Contents





4

About Colgate-Palmolive Pakistan

Company and Its Operations:

Colgate-Palmolive Pakistan Limited is a joint venture between Lakson Group and Colgate-Palmolive Company USA.

The Company’s principal activity is to manufacture, market and distribute home care andpersonal care products.

The Company has manufacturing facilities in Kotri Industrial Estate, Sindh and SundarIndustrial Estate, Punjab.

Company’s distribution network is spread across Pakistan with sales offices in 11 majorcities.

5

Contents





6

Milestones and Achievements

Key Milestones:

1977 1981 1984 1985

Incorporated as public limited company with the name of National Detergents Limited.

Incorporation Commenced commercial production.

Production

Obtained status of listed company on stock exchange.

Listing on Stock Exchange

Entered into licensing agreement with Colgate-Palmolive Company USA.

Licensing

7


Key Milestones:

1990 1996 2001 2006

Colgate-Palmolive Company USA acquired 30% shareholding via participation agreement.Name changed to Colgate-Palmolive (Pakistan) Limited.

Participation Gross sales of the Company crossed Rs 1 billion.

1 Billion Sales Acquired Sparkle Toothpaste.

Acquisition of Sparkle Gross sales of the Company crossed Rs 5 billion.

5 Billion Sales

8


Key Milestones:

2008 2009 2010 2011

Gross sales of the Company crossed Rs 10 billion.

10 Billion Sales

Implemented Enterprise Resource Planning – SAP.

SAP Implementation

Net Profit of the company crossed Rs 1 billion.

1 Billion Profit Manufacturing facility at Sundar made operational.

Sundar Plant

9


Key Milestones:

2015 2018 2020 2021

Started local production of toothbrush.

Local Production – Toothbrush Started local production

of shampoo.

Local Production - Shampoo

Gross sales of the Company crossed Rs 50 billion.

50 Billion Sales Net Profit of the company crossed Rs 5 billion.

5 Billion Profit

10


Achievements:

Winner of 9 consecutive CorporateExcellence Awards of ManagementAssociation of Pakistan.

Amongst Top 25 Companies of PakistanStock Exchange for 16 consecutiveyears.

11

Contents





12

Financial Highlights

Gross Sales (Rs in Billion) and Gross Profit Margin %:

3841

49

58

68

35% 33%28% 29% 29%

0%

20%

40%

60%

80%

100%

0

10

20

30

40

50

60

70

80

2017 2018 2019 2020 2021

Gro

ss M

argi

n %

Gro

ss S

ales

(R

s. in

Bill

ion

)

13


Profit After Tax (Rs in Million) and Dividend Payout %:

3,256 3,257 3,511

4,865

5,677

52% 54%60%

56% 56%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

1,000

2,000

3,000

4,000

5,000

6,000

2017 2018 2019 2020 2021

Div

iden

d P

ayo

ut

%

Pro

fit

Aft

er T

ax (

Rs.

in M

illio

n)

14


Profit Reinvestment & Dividend Payout:

Year

Profit After

Tax (Rs in

Million)

CAPEX (Rs in

Million)

CAPEX as %

of Profit After

Tax

Dividend

(Rs in

Million)

Dividend

Payout %

2017 3,256 576 18% 1,678 52%

2018 3,257 1,616 50% 1,774 54%

2019 3,511 1,385 39% 2,100 60%

2020 4,865 1,310 27% 2,705 56%

2021 5,677 2,433 43% 3,197 56%

Total 20,566 7,320 36% 11,454 56%

15

Contents





16

Product Categories and Key Challenges

Home Care Personal Care

Product Categories:

17

Product Categories and Key Challenges

• Devaluation of Rupee against US Dollar

• Rising input costs and supply chain disruptions

• Intense competition with key players to gain market share

• Constant pressure from unorganized / illicit sector

Key Challenges:

18

Contents





19

Corporate Social Responsibility

• Conducted My Bright Smiles Global ArtContest to raise oral health awarenesswhile sparking creativity reaching across180+ towns with approximately 35,000entries from all over Pakistan.

• Spread oral health awareness via televisionad campaign ‘Brush 2x A Day’

• Continued to support social welfareprojects and made donations amounting toPKR 25.7 million.

20

Contents





21

Health, Safety and Environment

Vaccination Drive:

Carried out COVID-19 vaccination drive at the head office, manufacturing and salesfacilities.

22


Solar Panels:

During last three years, the Company hassuccessfully implemented various renewableenergy projects resulting in reduced energyconsumption of 3,795 KW per day.

23


Effluent (Waste Water) Treatment Plant:

Colgate has also initiated recycling of process water. WasteWater Treatment Plant is an American Bio-TreatmentTechnology developed by Bio-Cleaner, USA. Company and iscurrently recycling 250,000 Gallons of water on monthlybasis.

24

Contents





25

Counterfeits

Counterfeit products have been a constant challenge for all FMCGs.

Brand Protection Unit of the Company works throughout the year for preventing significant quantitiesof counterfeits from reaching consumers.

Any Questions?

Thank You!

analyst briefing - 2021

Documents