Gillette India Reports Robust Quarterly Profit Amidst Growing Demand for Grooming Products

Gillette India, renowned for its high-quality shaving razors, revealed an impressive 7% increase in its quarterly profit on Tuesday. The company’s strong performance was fueled by a surge in demand for its grooming products, particularly in rural areas, supported by a decline in inflation. Gillette India, where consumer goods titan Procter & Gamble Co holds a substantial 75% stake, reported a first-quarter profit of 926.9 million rupees ($11.13 million), marking a significant rise from 867.8 million rupees recorded in the corresponding period last year.

India experienced a welcome dip in its annual retail inflation, which decreased from 7.44% in July to 6.83% in August and further dropped to 5.02% in September, primarily due to softer food prices. This decline in inflation played a pivotal role in rejuvenating consumers’ discretionary spending habits.

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Gillette India’s core grooming segment, constituting more than three-fourths of its total revenue, witnessed a robust 7.8% growth. Simultaneously, its oral care division also saw a commendable uptick, reporting a 7% increase. The company’s total revenue from operations climbed by an impressive 7.7%, reaching 6.68 billion rupees.

However, the growth in profits was accompanied by a nearly 10% increase in total expenses, primarily driven by a substantial 36% surge in stock-in-trade purchase costs. Despite this, the company’s financial outlook remained positive.

Interestingly, another member of the P&G Group, Procter & Gamble Hygiene and Health Care, also announced a remarkable 36% rise in its quarterly profit, emphasizing the group’s overall robust performance.

Following the release of these results, Gillette India’s shares experienced a minor dip of 0.3%. Nonetheless, the company had a stellar performance in the July-September quarter, recording an impressive 20.7% rise, in stark contrast to the 1.1% drop witnessed in the Nifty FMCG index during the same period.