Gillette India posts higher Q1 profit on strong demand
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Gillette India 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 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)
