April 30, 2026 (MLN): Colgate-Palmolive (Pakistan) Limited (PSX: COLG) reported a mild 4% decline in its net profit for the nine months ended March 31, 2026, recording Rs13.48bn compared to Rs14.10bn in the corresponding period last year.

Reflecting this bottom-line contraction, the company's basic and diluted earnings per share (EPS) slightly dropped to Rs55.53 from Rs58.09 in 9MFY25.

The dip in profitability occurred despite a steady top-line expansion, largely due to a significant reduction in secondary income and a higher tax burden.

COLG’s net turnover posted a 5% year-on-year increase, rising to Rs91.14bn from Rs86.98bn.

The company successfully kept its direct costs in check, with the cost of sales growing at a slightly slower pace of 4% to reach Rs58.47bn. Consequently, the core gross profit secured a healthy 6% expansion, settling at Rs32.67bn compared to Rs30.85bn in the prior year.

On the operational front, overheads grew steadily to support the higher sales volume. Selling and distribution costs rose by 9% to Rs10.03bn, while administrative expenses increased by 9% to Rs1.11bn.

The primary drag on the company's operational performance, however, came from a sharp 38% plunge in "other income," which dropped to Rs1.99bn from a robust Rs3.21bn last year. Weighed down by this shortfall in secondary income and rising overheads, the profit from operations dipped by 2% to Rs21.98bn.

Below the operating line, COLG's minimal finance costs dropped a further 5% to Rs118.93m. After accounting for a minor levy, the profit before taxation settled at Rs21.86bn, reflecting a mild 2% decline.

The final squeeze on the bottom line came from taxation. The company absorbed a 3% higher income tax expense of Rs8.38bn (up from Rs8.11bn), which outpaced pre-tax earnings growth. This combination of lower other income and elevated taxes led Colgate-Palmolive (Pakistan) to securely close the nine-month period with its net profit contained to a 4% decline, standing at Rs13.48bn.