Gillette India (507815) Q4 03/04 earnings summary

Executive summary

• FY2004 marked record sales, market leadership and profitability; sales grew 12% and net profit reached a record Rs. 61.22 crore, up 37% YoY.

• Value leadership was achieved in three of four categories, alongside continued investment in advertising, brand building and organizational capabilities.

Financial highlights

• Sales and other income were Rs. 465.45 crore vs Rs. 421.45 crore; net sales were Rs. 406.31 crore vs Rs. 363.07 crore.

• Profit before interest, depreciation and tax was Rs. 113.94 crore, up 16%; PBT was Rs. 97.88 crore, up 31% YoY.

• PAT was Rs. 61.22 crore vs Rs. 44.82 crore; ad and sales promotion spend rose to Rs. 58 crore from Rs. 45 crore.

Outlook and guidance

• Management expected growth to benefit from rising household purchasing power, global capital inflows, lower import duties, retail expansion and demand for high-technology consumer products.

• Grooming, oral care and alkaline batteries were positioned to benefit from changing grooming habits, greater oral-hygiene awareness and growth in high-drain devices.