Gillette India (507815) Q4 99/00 earnings summary

Executive summary

• 2000 marked the merger of Wilkinson Sword India and Duracell India into the existing Indian grooming business, broadening the portfolio across grooming, batteries, torches and related products.

• Sales and other income reached Rs. 53,654.31 lacs; reported profit after tax was Rs. 2,642.03 lacs, including a Rs. 585.86 lacs tax provision write-back.

• The year included major product launches, completion of Bhiwadi manufacturing upgrades and investment in a new Gurgaon corporate office.

Financial highlights

• Sales were Rs. 51,679.69 lacs versus Rs. 25,000.29 lacs in 1999; comparisons are not like-for-like after the amalgamation of two businesses effective January 1, 2000.

• Profit before tax was Rs. 2,261.84 lacs versus Rs. 3,309.57 lacs; profit after tax was Rs. 2,642.03 lacs versus Rs. 1,942.57 lacs, aided by a prior-year tax provision write-back.

• Profit before interest, depreciation and tax was Rs. 6,716.27 lacs versus Rs. 4,835.12 lacs; reported results include the expanded business perimeter.

• Proposed dividend was Rs. 1.50 per share on 32,585,217 equity shares; dividend appropriation was Rs. 488.78 lacs plus Rs. 110.46 lacs tax.

Outlook and guidance

• Current-year grooming trends were healthy, with blades, razors and toiletries recording sales growth; further launches and promotions were expected to improve profitability.

• Plans included a national relaunch of Geep batteries and flashlights, with modern coordinated branding, and continued expansion of grooming and battery exports.

• Management planned an aggressive market profile while controlling operating costs in response to slowing economic conditions.