Gillette India rises as June quarter PAT jumps 145% YoY

Gillette India advanced 3.02% to Rs 5,485.05 after the company's standalone net profit jumped 145.5% to Rs 67.59 crore on 26.8% increase in revenue operations to Rs 552.89 crore in quarter ended June 2022 over quarter ended June 2021.

The company said net sales was driven by its superiority strategy and strong brand fundamentals. The profit after tax (PAT) was supported by strong sales growth and productivity in the current quarter, as well as higher investment in brand building activities in the base period. Compared to the corresponding quarter two years ago, the company's sales are up 57% and profit after tax is up 50%. The grooming and the oral care businesses recorded double-digit growth and grew ahead of their categories.

Profit before tax surged 144.35% to Rs 92.22 crore in the quarter ended June 2022 as against Rs 37.74 crore in the quarter ended June 2021.

The company's standalone net profit declined 6.78% to Rs 289.33 crore despite of a 12.27% rise in net sales to Rs 2,256.16 crore in the year ended 30 June 2022 over the year ended 30 June 2021.

Gillette added, despite unprecedented headwinds from macroeconomic challenges and softening consumption trends during the fiscal, the company delivered sales of Rs 2,256 crore, up 12% versus year ago behind the strength of its product portfolio and improved retail execution. Profit after tax was Rs 289 crore, down 7%, largely behind commodity cost inflation. Compared to the fiscal two years ago, the company's sales are up 34% and profit after tax is up 26%.

LV Vaidyanathan, the managing director (MD) of Gillette India, said: Our commitment to our integrated strategies of a strong portfolio, superiority, productivity, constructive disruption, and an agile and accountable organization structure, has empowered us to deliver these consistent results this fiscal year, despite unprecedented challenges and disruptions in the macroeconomic and business landscape. This is a testament to the strength of our products and strategic choices to drive meaningful superiority across products, packaging, communication, retail execution and value proposition. Our strategy is fueled by balancing innovation and industry-leading practices, while driving productivity in everything we do. The cornerstone of all of this, is our resilient organization.

He further added, While the near-term continues to be marked by unprecedented challenges and uncertainties, we will continue to focus on our strategy which has consistently enabled us to deliver balanced growth and value creation.

The board of directors have recommended a final dividend of Rs 36 per equity share for the financial year ended 30 June 2022, subject to the approval of shareholders of the company at the ensuing 38th annual general meeting.

Gillette India is engaged in the manufacturing and sale of branded packaged fast-moving consumer goods in the grooming, portable power and oral care businesses.

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