Gillette India (507815) Q4 97/98 earnings summary

Executive summary

• 9M ended Dec. 31, 1998 sales grew over 20% and PBT reached Rs. 15.70 crore, with annualized PBT growth of over 62%; the period followed a shift to a Jan.–Dec. fiscal year.

• Expanded beyond shaving into broader male grooming and women’s personal grooming, while oral care sales also grew; value-focused products and wider distribution remained strategic priorities.

Financial highlights

• Revenue, including other income, was Rs. 15,219.42 lacs for 9M; sales were Rs. 14,966.82 lacs, versus Rs. 16,550.94 lacs for the prior 12 months, which is not a like-for-like period comparison.

• PBT before the Rs. 49.92 lacs VRS extraordinary item was Rs. 1,619.82 lacs; net profit after the item and tax was Rs. 1,309.90 lacs.

• Proposed dividend was Rs. 2.20 per share, or 22%; annualized dividend was cited as 29%.

Outlook and guidance

• Priorities were premium, state-of-the-art products on a value-for-money platform and expansion of distribution to reach more Indian consumers.

• Selected Luxor and Parker writing instruments were to be sold through FMCG outlets, using existing distribution synergies.