Gillette India posts higher Q1 profit on strong demand

Gillette India

28/10/2024 12:00

Oct 28 (Reuters) - Gillette India  GILE.NS  posted a
roughly 44% rise in first-quarter profit on Monday, driven by
strong demand for its grooming products.
    Gillette India, known for its razors and shaving creams,
posted a profit of 1.33 billion rupees ($15.8 million) for the
quarter ended Sept. 30, compared with 926.9 million rupees a
year earlier.
    New products and designs, including the company's
multi-blade systems and gel shaving creams, have been attracting
consumers, along with steady demand for its high-priced
products.
    "The growth has been broad-based amidst continuing green
shoots in rural markets," the company said in a press release.
    Rural demand in India has gathered pace over the last few
quarters, partly driven by increased government spending.
    Revenue from the core grooming segment, which makes razors
and contributes 83% to Gillette India's total revenue, increased
23% to 6.49 billion rupees during the quarter.
    However, the company has also been splurging on advertising.
    Its advertising and promotion expenses grew 11%, expanding
its total expenses by 11% to 6.12 billion rupees.
    Earlier this month, parent Procter & Gamble Co  PG.N 
reported a surprise drop in quarterly sales, as price-conscious
consumers in its major U.S. and Chinese markets switched to
cheaper brands of health and family care products.
    Gillette India's shares closed 3.6% higher ahead of the
results and are up about 32% for the year so far.
 

    ($1 = 84.0510 Indian rupees)
  

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Eileen Soreng)
 ((AshnaTeresa.Britto@thomsonreuters.com;))