analyst briefing - 2021
TRANSCRIPT
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Trusted Brands, Spreading Smiles
Analyst Briefing - 2021
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Contents
About Colgate-Palmolive Pakistan01
Financial Highlights03Product Categories and Key Challenges04
Milestones and Achievements02
Corporate Social Responsibility05Health, Safety and Environment06Counterfeits07
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Contents
About Colgate-Palmolive Pakistan01
Financial Highlights03Product Categories and Key Challenges04
Milestones and Achievements02
Corporate Social Responsibility05Health, Safety and Environment06Counterfeits07
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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.
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Contents
About Colgate-Palmolive Pakistan01
Financial Highlights03Product Categories and Key Challenges04
Milestones and Achievements02
Corporate Social Responsibility05Health, Safety and Environment06Counterfeits07
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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
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Milestones and Achievements
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
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Milestones and Achievements
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
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Milestones and Achievements
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
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Milestones and Achievements
Achievements:
Winner of 9 consecutive CorporateExcellence Awards of ManagementAssociation of Pakistan.
Amongst Top 25 Companies of PakistanStock Exchange for 16 consecutiveyears.
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Contents
About Colgate-Palmolive Pakistan01
Financial Highlights03Product Categories and Key Challenges04
Milestones and Achievements02
Corporate Social Responsibility05Health, Safety and Environment06Counterfeits07
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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
)
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Financial Highlights
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)
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Financial Highlights
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%
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Contents
About Colgate-Palmolive Pakistan01
Financial Highlights03Product Categories and Key Challenges04
Milestones and Achievements02
Corporate Social Responsibility05Health, Safety and Environment06Counterfeits07
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Product Categories and Key Challenges
Home Care Personal Care
Product Categories:
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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:
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Contents
About Colgate-Palmolive Pakistan01
Financial Highlights03Product Categories and Key Challenges04
Milestones and Achievements02
Corporate Social Responsibility05Health, Safety and Environment06Counterfeits07
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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.
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Contents
About Colgate-Palmolive Pakistan01
Financial Highlights03Product Categories and Key Challenges04
Milestones and Achievements02
Corporate Social Responsibility05Health, Safety and Environment06Counterfeits07
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Health, Safety and Environment
Vaccination Drive:
Carried out COVID-19 vaccination drive at the head office, manufacturing and salesfacilities.
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Health, Safety and Environment
Solar Panels:
During last three years, the Company hassuccessfully implemented various renewableenergy projects resulting in reduced energyconsumption of 3,795 KW per day.
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Health, Safety and Environment
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.
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Contents
About Colgate-Palmolive Pakistan01
Financial Highlights03Product Categories and Key Challenges04
Milestones and Achievements02
Corporate Social Responsibility05Health, Safety and Environment06Counterfeits07
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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.
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Any Questions?
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Thank You!