⚡ Flash Summary

Colgate-Palmolive (Pakistan) Ltd. reported a 4.57% increase in turnover for the quarter ended September 30, 2025, driven by higher sales volume. However, gross profit declined slightly by 0.5% due to higher trade discounts. Other income also decreased significantly by 57.77% because of lower policy rates. Consequently, net profit after tax saw a decrease of 10.58% compared to the same quarter last year.

📌 Key Takeaways

• 📈 Turnover increased by 4.57%, reaching PKR 41,983 million.
• 📉 Net turnover increased by 2.86% to PKR 30,862 million.
• 📉 Gross profit decreased by 0.50%, standing at PKR 10,748 million.
• 📉 Gross profit margin declined by 117 bps to 34.83%.
• ⬆️ Selling & Distribution Cost increased by 1.20% to PKR 3,195 million.
• ⬇️ Administrative Expenses decreased slightly by 1.31% to PKR 342 million.
• ⬇️ Other Income significantly decreased by 57.77% to PKR 654 million.
• 📉 Profit from Operations decreased by 10.64% to PKR 7,344 million.
• 📉 Profit After Tax decreased by 10.58% to PKR 4,564 million.
• 📉 Earnings per Share decreased by 10.58% to PKR 18.80.
• ⬇️ Other comprehensive income for the quarter is zero.
• 🌱 Company focuses on strengthening brand equity through packaging revamps and upgrades.

🎯 Investment Thesis

Given the mixed results of this quarter, with revenue growth offset by declining profits, a HOLD recommendation is appropriate. The company’s strategic initiatives to strengthen its brand and market leadership are positive, but the financial performance indicates headwinds. The price target rationale is based on maintaining the current position until further improvements in profitability are demonstrated.