Colgate Palmolive Pakistan : TRANSMISSION OF QUARTERLY REPORT FOR THE QUARTER/PERIOD ENDED 31 MARCH 2022

COMPANY INFORMATION
BOARD OF DIRECTORS	EXTERNAL AUDITORS
Iqbal Ali Lakhani - Chairman	A. F. Ferguson & Co.
Amin Mohammed Lakhani	Chartered Accountants
Aliya Saeeda Khan
Kamran Yousuf Mirza	INTERNAL AUDITORS
Syed Shahid Ali Bukhari	BDO Ebrahim & Co.
Peter John Graylin	Chartered Accountants
Xuan Dai
Zulfiqar Ali Lakhani - Chief Executive	SHARES REGISTRAR
FAMCO Associates (Private) Limited
ADVISOR	8-F, Near Hotel Faran, Nursery, Block-6,
Sultan Ali Lakhani	P.E.C.H.S., Shahra-e-Faisal, Karachi.
AUDIT COMMITTEE	REGISTERED OFFICE
Aliya Saeeda Khan - Chairperson	Lakson Square, Building No. 2,
Iqbal Ali Lakhani	Sarwar Shaheed Road,
Amin Mohammed Lakhani	Karachi-74200 Pakistan
Kamran Yousuf Mirza
FACTORIES
HUMAN RESOURCE &	G-6, S.I.T.E., Kotri
REMUNERATION COMMITTEE	District Jamshoro (Sindh)
Kamran Yousuf Mirza - Chairman
Iqbal Ali Lakhani	H-36 (B), S.I.T.E., Kotri
Zulfiqar Ali Lakhani	District Jamshoro (Sindh)
Aliya Saeeda Khan
217, Sundar Industrial Estate,
COMPANY SECRETARY	Raiwind Road, Lahore
Mansoor Ahmed
CHIEF FINANCIAL OFFICER	WEBSITE
Mudassir Iqbal	www.colgate.com.pk
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Third Quarter Report 2021-22

DIRECTORS' REVIEW The directors of your Company are pleased to present the un-audited condensed financial statements of the Company for the nine months period ended March 31, 2022. Financial Performance at a Glance A brief financial analysis of the Company's performance is summarized below: July 2021- March 2022July 2020- March 2021 Increase / Operating Results (Decrease) Amount in PKR million Turnover 59,614 50,043 19.13% Net Turnover 44,984 37,477 20.03% Gross Profit 11,895 11,316 5.12% Gross Profit % 26.44% 30.19% (375 bps) Selling & Distribution Cost 5,016 4,723 6.20% Administrative Expenses 524 478 9.62% Profit from Operations 6,569 6,260 4.94% Profit after Tax 4,633 4,332 6.95% Earnings Per Share - Rupees 63.65 59.50 6.95% Financial Performance Highlights Net turnover grew by 20.03% on the back of strong growth momentum witnessed across all categories. Gross margin remained under pressure due to currency depreciation and rising commodity and freight cost. The Company has increased its inventory levels by Rs 4,825 million at March 31, 2022 versus June 30, 2021 to protect against the risk of price volatility and availability of key raw materials. Selling and distribution costs went up by 6.2% mainly due to freight charges. Administrative expenses grew by 9.62% primarily on account of employee related costs. Business Performance Highlights Colgate focused on growing consumption through regimen packs and direct to consumer activities supplemented by trade drives for visible distribution. Leveraging the Bright Smiles Bright Futures 03

school program, Colgate reached out to children to increase toothpaste penetration and create awareness about the importance of good oral hygiene habits from an early age.

Both Palmolive bar soap and shampoo continue to experience double digit growth. Together with liquid handwash and Protex anti-bacterial range, the portfolio met consumers' beauty as well as hygiene needs.

Competition remained tough in the home care category as all the key players increased spending on advertising and trade. The key growth challenge in semi urban and rural areas is coming from unorganized sector that continues to flourish unabated.

Future Outlook

The economic outlook remains challenging as increase in commodity prices and currency devaluation are expected to continue amid political and economic uncertainty. Rising inflation coupled with aforesaid challenges will continue to dilute the margin.

Acknowledgement

We would like to extend our sincere gratitude to our consumers for their trust in our brands. We are thankful to our customers, distributors, supply chain partners bankers and shareholders for their continued support. We also appreciate our employees for their relentless dedication and immense contribution to the Company.

On behalf of Board of Directors

Iqbal Ali Lakhani

Zulfiqar Ali Lakhani

Chairman

Chief Executive

Karachi : April 27, 2022

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