Colgate-Palmolive results disappointed again even on low expectations, as a result of weak rural operating environment. Net sales (including operating income) was flat with likely 2% y-o-y volume decline. Three-year sales CAGR and average volume trend also continue to be weak at 4%/2%, respectively. Ebitda and PAT declined y-o-y, and resulted in a three-year CAGR of 5% and 7%, at the end of 3QFY23.
While the management stated that adverse macro factors affected company performance for the quarter, it expressed cautious optimism going forward. We do not expect earnings growth to resume strongly over the medium term, and thereby, reiterate our Neutral rating.
While performance for the quarter could have been adversely affected by the rural segment, the sales/Ebitda/PAT CAGR in the five-year ending FY23E is unimpressive at 4.7%/6.2%/8.3%, respectively. There seems to be no revival in rural sentiment.
Tags: 上海419论坛KP, 上海夜网 约会归来BA, 私人伴游网PU, 阿拉后花园419论坛SIP