Gillette India reported a nearly 4% fall in third-quarter profit as stiff domestic competition dampened demand.
Gillette India, known for its Mach 3 brand of shaving razors, reported a profit of Rs 99.09 crore for the January-March quarter
Shares of Gillette India climbed 9.95 per cent to hit an intraday high of Rs 6,827.45 per share on Tuesday, after reporting a strong set of quarter-ending March (Q4FY24) results.
Gillette India, known for its Mach 3 brand of shaving razors, reported a profit of Rs 99.09 crore for the January-March quarter, which was 3.5 per cent lower, compared with Rs 103 crore a year earlier.
Consumer goods makers are increasingly facing strong competition from smaller manufacturers who are better equipped to occupy shelf space due to declining commodity prices.
Revenue from Gillette’s core grooming segment, which accounts for 82 per cent of the total, rose nearly 10 per cent to Rs 680.74 crore, while the cost of raw materials consumed fell 6.3 per cent.
Gillette India’s Earnings Before Interest, Tax, Depreciation and Amortisation or EBITDA for the quarter stood at Rs 160.34 crore, compared to Rs 160.34 crore last year, while the margin also expanded to 23.6% from 21.6% last year.
Segment-wise, Gillette India said it gained market share in the core blades and razor segment on the back of distribution expansion initiatives, good response to its female hair removal range and increased salience of trimmer and shaver range. It also said the female range constituted 15 per cent of grooming sales.
Parent and consumer goods giant Procter & Gamble Co had raised its annual core profit forecast earlier in April, driven by price increases and resilient demand.
Additionally, the company delivered sales of Rs 681 crore, up 10 per cent annually, driven by superior innovations across the portfolio, and strong brand fundamentals.
“We continue to deliver a strong top line and share growth driven by our teams’ excellent execution of our integrated growth strategy. We remain committed to a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption, and an agile and accountable organisation. We are confident that these strategies will continue to help us deliver balanced growth and value creation,” said LV Vaidyanathan, Managing Director, Gillette India.
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