India's P&G Hygiene posts jump in Q2 profit as lower costs offset dip in sales

Procter & Gamble Hygiene and Health Care

31/01/2024 08:21

BENGALURU, Jan 31 (Reuters) - Indian consumer goods
maker Procter & Gamble Hygiene and Health Care  PROC.NS 
reported higher second-quarter net profit on Wednesday, as lower
costs countered a small drop in sales.
    The company reported a profit of 2.29 billion rupees ($27.6
million) for the quarter ended Dec. 31, up over 10% from the
same period last year.
    P&G Hygiene, which is known for products like "Whisper"
sanitary pads and "Vicks" cold medications, said its total
expenses fell nearly 3% to 8.41 billion rupees, helped by lower
raw material and finance costs.
    Cost of materials consumed, which includes ingredients like
benzoic acid, parabens, and salicylic acid, fell 4.7%.
    The company attributed the profit growth to its product
price-mix and moderating cost inflation compared to the year-ago
period.
    India's average inflation for the three months ended Dec. 31
eased to 5.37% from 6.12% in the year-ago period.
    However, the company said its sale of products slipped 0.3%
to 11.31 billion rupees, owing to a "challenging operating
environment".
    The results come at a time when other consumer goods makers
like Hindustan Unilever  HLL.NS , Nestle India  NEST.NS , and
Britannia Industries  BRIT.NS  are grappling with consumers
cutting back on spending.
    Macroeconomic headwinds continued to put pressure on
consumers' wallets, said analysts at Jefferies in a note.
    Last week, the company's American parent Procter & Gamble
 PG.N  beat second-quarter core profit estimates due to strong
demand for daily-use products. However, it lowered its annual
profit forecast for FY24.
    Separately, P&G Hygiene declared an interim dividend of 160
rupees per share for the financial year 2023-24.

($1 = 83.0425 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Varun H K)
 ((AshnaTeresa.Britto@thomsonreuters.com;))