Personal care major Gillette India today reported a 7 per cent fall in its net profit for the financial year July 2021-June, 2022. The Mumbai-based company’s net profit declined to Rs 289 crore, down from Rs 310 crore in the corresponding period previous year.
According to the company management, steep rise in commodities prices impacted its bottom-line performance during the year. While its revenue from operations rose 12 per cent to Rs 2,256 crore from Rs 2,009 crore. Total expenses surged 15 per cent to Rs 1,853 crore during the period - dragging its bottom-line and margins. As a result, the company’s profit before tax margin shrank by over 300 basis points to 18.2 per cent - down from 21.4 per cent a year ago. Gillette India follows a July to June financial year format.
Gillette India said in a statement, “Despite unprecedented headwinds from macroeconomic challenges and softening consumption trends during the fiscal”, it delivered 12 per cent sales growth due to “the strength of their product portfolio and improved retail execution”. The 7 per cent decline in its net profit is “largely behind commodity cost inflation”.
“Our commitment to our integrated strategies of a strong portfolio, superiority, productivity, constructive disruption, and an agile and accountable organisation structure, has empowered us to deliver these consistent results this fiscal year, despite unprecedented challenges and disruptions in the macroeconomic and business landscape,” said LV Vaidyanathan, Managing Director, Gillette India Ltd.
“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,” he added.
The board of directors of the company has recommended a final dividend of Rs 36 per equity share for the financial year ended June 30, 2022. Gillette India stock today rose 2.87 per cent to Rs 5,476.70 at the Bombay Stock Exchange.
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