Personal grooming products company Gillette India reported a 27.97 per cent dip in net profit at Rs 20.04 crore in the first quarter ended September 30, 2008, over Rs 27.82 crore in the corresponding quarter of the previous financial year. The decline in net profit was on account of price reduction on Vector Plus shaving systems and growth of lower margin mid-price ranged Oral B tooth brushes.
Further, during the quarter, higher expenses were incurred on the advertising and sales promotion. Also, the cost of imports saw an increase due to fall in the value of the Indian rupee against the US dollar. Its net sales, however, grew 4 per cent to Rs 142.82 crore in the quarter on the back of strong growth in oral care, as against Rs 137.70 crore in the corresponding quarter in 2007. Shares of the company closed at Rs 680, up 2.82 per cent on the Bombay Stock Exchange.
“We will continue to consolidate our blades and razors business with new and innovative propositions. Market share on both premium Mach 3 systems and entry level Vector systems continue to grow indicating our strategic focus on upgrading consumers to superior performing shaving systems,” Shantanu Khosla, MD, Gillette India said.
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