Gillette India quarterly profit rises as cost cuts ease commodity pressure
Higher input costs continue to weigh on consumer goods makers in India, but Gillette India reports profit growth in its second quarter as expenses rise more slowly than revenue. The Procter & Gamble-owned company says its productivity programme helps cushion commodity pressures, while its grooming business remains the main sales driver.
Highlights
- Gillette India posts a 10.8% year-on-year rise in net profit to 1.59 billion rupees for the September quarter, with revenue up 4.4% to 8.46 billion rupees.
- Grooming segment revenue grows 2% to 6.79 billion rupees, while segment profit surges 18.5%, supporting overall profitability despite modest sales expansion.
- Gillette India's cost controls and productivity measures offset rising input costs, outperforming sector peers as industry gross margins contract 120 basis points year on year.
Quarterly performance and margin support
As reported by Reuters, Gillette India reports a 10.8% rise in standalone net profit to 1.59 billion rupees for the quarter ended September 30, compared with 1.44 billion rupees a year earlier. Revenue from operations rises 4.4% to 8.46 billion rupees from 8.11 billion rupees, while total expenses increase 2.2%.The company says its productivity programme helps mitigate significant commodity cost pressures, although it does not specify the cost-saving steps behind the savings. Gillette India, which makes shaving razors, creams and Oral-B toothbrushes, is owned by U.S. consumer goods group Procter & Gamble.
Revenue from the grooming business, which accounts for about 80% of total sales, rises 2% to 6.79 billion rupees. Segment profit for that unit climbs 18.5%, indicating stronger profitability in the company’s core category.
Consumer staples sector faces input cost strain
Gillette India’s results come as consumer staples companies continue to navigate margin pressure from higher raw material costs. Brokerage Systematix says gross margins across its coverage of 10 consumer staples companies contract 120 basis points year on year in the September quarter, as price increases do not fully offset higher input costs.Late last month, parent company Procter & Gamble posts better-than-expected first-quarter results, even as rising commodity costs weigh on margins. That backdrop suggests Gillette India’s cost controls and category mix are helping it limit some of the broader pressure facing the sector.
As a reminder, we recently covered the AI stock plunge as oil at $110 a barrel stoked inflation worries.
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