Gillette India's quarterly profit rises on strong grooming product demand
Gillette India posted a higher second-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 1.26 billion rupees ($14.4 million) for the quarter ended December 31, compared with 1.04 billion rupees a year earlier.
The company continues to see strong demand for its new products and designs, including its multi-blade systems and gel shaving creams, while sustained demand for its higher-priced products has further boosted its revenue.
Rural consumer demand in India has gathered pace over the last few quarters, while urban demand has slowed down.
Revenue from the core grooming segment, which produces razors and accounts for about 80% to Gillette India's total revenue, increased 11% to 5.71 billion rupees during the reported quarter. Sales from its smaller segment, oral care, dropped more than 8%.
The company has also been ramping up its advertising spend in an effort to compete with private labels offering cheaper alternatives.
Its advertising and promotion expenses rose nearly 30%, widening its total quarterly expenses by 4%.
Shares of Gillette India were down 1.6% after the results amid a broadly weaker market. [.BO]
($1 = 87.5950 Indian rupees)
